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BKNG Booking

Participants
Glenn Fogel President & Chief Executive Officer
David Goulden Executive Vice President & Chief Financial Officer
Alex Wang Morgan Stanley
Kevin Kopelman Cowen
Chris Kuntarich Deutsche Bank
Eric Sheridan UBS
Dae Lee JPMorgan
Justin Post Bank of America
Mark Mahaney RBC
Stephen Ju Credit Suisse
Deepak Mathivanan Barclays
Lee Horowitz Evercore ISI
Call transcript
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Operator

Welcome to Booking Holdings Third Quarter 2020 Conference Call. Booking Holdings would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals or expectations and similar expressions reflecting something other than historical facts are intended to identify forward-looking statements.

safe factors materially cause the Holdings' from please Securities to Commission. of results Holdings' forward-looking Exchange earnings list the and recent refer differ at filings well to those the Holdings' press a release, that the as Booking could actual statements, end as For of statement Booking Booking most harbor described the in with result statements, of no undertakes information, Unless required whether to publicly otherwise. as any Booking a or by events obligation forward-looking new update future Holdings law, A an copy Investors www.bookingholdings.com. supplement in of together Booking website, Holdings' earnings For accompanying is press release the section with Holdings' statistical of Booking financial and available And Glenn now, for introduce David speakers Holdings this Fogel I'd afternoon, like Goulden. to Booking and Go ahead, gentlemen.

Glenn Fogel

conference Thank Goulden. you. call. CFO, by this And David our afternoon welcome joined to quarter third I'm Booking Holdings'

and reported the quarter, marked down COVID-XX a XX% of we second profitable quarter. the in in pleased to on were of XX% to we in is was a in heavily which which our our experienced room impact the The decrease far, were weigh quarter, the trends impact While third improvement largest, from most sequential by year-over-year cancellations, the improvement see quarter. third our results, continues includes which nights, seasonally

was was lower year. the on which reported $XXX benefit, in an points EBITDA third in more $X room by led QX, Continued loss adjusted quarter, than the quarter than decline in XX% approximately from offset pressure about FX ADRs percentage X of this the We gross point improvement revenue we billion million in but last the X slightly quarter by bookings and nights. recorded

significantly are we below levels. show, pre-COVID results our operating As

team's they environment quarter, pleased to results improvement infections. from and what and unpredictable improvement international relentless encouraged emerge our the our best with in extremely by Delivering to modest The coronavirus be and versus the credit see However, service provide customers travel. almost as these quarter this booking second is through the connecting driven third versus the an travelers in entirely value in efforts we improvement our very first spring's a an of partners. a to and domestic platforms challenging by travel wave we're traveler trends second supply supply was partners to and in to were continues quarter

restrictions last noted a in to travel, we which domestic after As trends to in our challenging benefiting consumers way domestically. in the believe from environment they is results on it demonstrate desire this some who forces QX we've travel government pent-up with business have to from to benefiting quarter, travel QX. improvements seen do people's want demand We find deep lockdowns international the

the that David regions related driven public in Looking greatly by QX flattened by trends believe XXXX, about out steady in through virus infection the affected and month and to believe the will this reimposing health to increased declined quarter, on compared August governments days XX%. by result the more is be trends seven and last to restrictions. more decline public consistent XX% in the from We travel infections the through by continue provide as closely health yesterday, his governments’ year-over-year relatively of was certain and In worsening that some saw room color responses. declined We we October will each remarks. nights about shape October, nights over reported global in improvement April reportedly of September. July

the winter rising what to difficult Hemisphere demand, full predict As two we as Northern will like think it's fourth in case the months areas. we many quarter, exactly look next months counts travel amid about in terms the COVID the in of enter

it strongly and in people observed us out travel, desire this I the of company. will timing recovery, the industry milestone for key this to very travel. in treatment, to that greater have distributed in be seeing, we QX. we're to currently this fall will people effective and our believe a shape be room what confidence challenging When of expected a a Despite crisis. and year-over-year we or both trends in outlook innate we drive night ultimately challenging us, believe that to vaccine widely that continue that profitability we ahead decline turns it a the the case, I our will be will If the is an long-term about winter October. give reach QX for out believe which be Given to recovery remain which to than of safe confident think

being such While by achieve take progress vaccine increased cooperative it governments of made encouraged the will some programs encouraged would a any this understand incentivize world the we global governments and news as Japan time concrete distribute the recovery. to these like on and travel see help from effectiveness. also to to front, action on taking incentives More produce travel. I'm basis accelerate and we're around Thailand to

volumes. we're leaves emerge for the that to the challenging recognize important up groundwork against the continue market we times, plans meantime, I company quarters of us on position likely the a One not to in navigate these series set In of progress and strength. will optimistic industry. the execute there'll travel to me a seeing years from lay before pandemic continue the through to be our of outlook returns to the and long-term pre-COVID

work OpenTable, to started As cost savings total the quarters. and structure, with and associated we million $XX at Agoda annual see of during we it in third previously to This demand plans few KAYAK, the over cost Priceline. our assessed market complete align the some of And [paid] quarter. discussed, developed is we've next expected

the associated Booking.com to countries. voluntary are in approximately to an between savings been with workforce We with labor And We've initiatives taking in restructuring at we've schemes. action reduce at countries, $XXX estimated by progress $XXX various implemented Booking.com to making XX% our annualized up million million. some

vast with and to to work is stress other to employee councils, in representatives personnel the announcements continuing and reductions we take the make are decisions hope majority not personnel It restructuring do of end are organizations that these works XXXX. important our about them the of It's finalize other to difficult, to plans by We these our employees countries. lightly.

the right the expected to believe restructuring the we Given company the are we timeframe actions the in business. recovery have that plans for discussed, of that order our size correct

long-term over reduction this focused seamless actions, believe In we trips, effort improve will addition is our demand long-term. enhanced multi-product offering, Part business experience vision capture platform, to the on it frequency and to drive the cost build and more as the remain on positioning over connected towards recovery to we develops the of during continuing which time. loyalty ultimately travel our our customer of and

of market us flights trip. in the U.S. providing friction We flights In It acquisition addition, to customer we develop is customers. accommodation for partners. to a a core together payment with offering The by of trip our we work customer vision suppliers. booking Booking.com closely continue in more to payment our Also, the our capabilities to connected component this will important supply more the the it strongly merchandising including payment our properties to our product, their obvious on to platform respond announced capture and see them opportunity process these believe supply of take and benefits this believe more costs frictionless continuing for build experience our as and to the lower continue connected network, which an We products effectively and launch supply recently growth flight key remove other business. we that has for extend to early as in brought is travel of partners, our to travel provide opportunities seamless valuable enhance and both will we developing through bookers a Booking.com demand steps time. on of potentially over for help to partners returns order environment,

who you on address regulatory Commission the a many are have matter these and establish associated which, and we economy, to the for gatekeeper questions new let in and about. framework following operate that other the that and closely for European a things, Finally, being some working are across to is and online among rules Europe for criteria regulations rules large proposes The me development. companies designate regulations The businesses. of digital as may gatekeepers

accommodation be the estimate designated impact accommodations open put To providers accommodation and difficult very potential X% at reason properties speculations choices booked been of potentially a we So The our believe competitive. principal is of of Across for in one and book questions the online nights multiple number incorrect Europe globally have this firmly was all XXXX. to is Booking.com and customers. for and and is offline offline very number across this room to maybe Consumers in XX%. There that into all market online that would gatekeepers, platform bookable that which about have have time. about reasons. Europe, the channels Booking.com multiple perspective, on our accommodations

framework are a and calls. pandemic development, on update under to believe I responding we In crisis. mentioned, this As regulatory well new is you will developments we European future we conclusion, during

days. are as are that so our as possible great much our we them providing We working can business customers with difficult and get these service to partners together supply during

of letting go we it’s us. quarters think And still so expect many go working that ahead But dedicated of had I let and been we people. a some clearly it are process to have hard the to necessary step. in is challenging sad

years believe will I As we take said travel fully before, it to for recover.

footing. in alike over and now to customers David our during am to execute our partners deliver from to emerge and strong team's on value and ability the crisis will to times our call CFO, a these this I confident Goulden. However, to turn traveler unprecedented continue I supply

David Goulden

saw for our growth the you, release. Thank non-GAAP the review Information otherwise on of some period and earnings quarter good the prior color unless comparable will and I and into found results to rates reconciliation All the trends we are indicated. year October. be can regarding third operating Glenn, quarter through our to GAAP provide relative afternoon. in

in the in Now XX% the driven improving booked saw last our on about for room in that July, July, nights newly XX% by we results in throughout levels steadily including earnings August, to second On call the increased decline domestic of year-over-year quarter. about discussed trends to and April from quarter travel. we into the our

booked -- room of reminder, nights excluded As a newly booked impact cancellations. newly nights

July steady declining noted, to saw we quarter. and the in our improvements newly nights August Glenn trends from XX% room full in about global that for the April flattened out booked in As resulting September,

levels. year cancellations, booked the newly room was worse our Our third the night full quarter, other rates room QX the QX in in remained demand above than cancellation moved travel night, from continue earlier decreased in prior quarter is XX% to for of included level, decline This which regional as restrictions saw America room impact night reported the as the improvement quarter. lockdowns we declines throughout a versus the and by helped improve North we At which pent-up year.

night result, room was bookings throughout Room slowdown Asia and higher down America, room governments throughout of down moved a room saw climbing in also a were XX% for remained the in and we Unfortunately, in October, were However, many Europe. difficult Europe. consistent softening by to beginning nights the case restrictions. about slowdown This further in And reported booked a September, October COVID while we global declines in offset were In respond XX%. October year-over-year, travel about with through declines of in North as pattern into this with nights QX. countries, counts Asia night we newly improvement continued in to trends leading as consistent October, saw month imposition QX. European

spring COVID with This through and will October, the year-on-year. lasting over declining are in about and Over reminder in X nights booked recent yesterday, which will is versus of -- our travel We in global XX% now by these declining October the cases quarter. and result decreased reverted after our the the booked deteriorated and growing cold XX% room was room room domestic third further fragile in year-over-year room in are higher. room quarter, early a our the about trends last business average, also the in reported significantly the much about newly year-over-year in decline recovery nights room with in QX have Europe, recent represented accommodation in that Domestic in nights coupled newly in a COVID. and trends year-on-year geographies, in a newly that XXXX, booked days second both These XX%. these rates weather booked seeing decline driven second we're Europe back dip a newly believe XXXX. alternative this and and third that After night dip increasing restrictions nights October. to is U-shaped U.S., increase Booking.com's likely these year-over-year domestic nicely result until nights being of the up XX%

October as impact worse Our above year the levels. the includes of reported remained month night cancellations, room night prior newly decline, booked than which our the decline rates in room cancellation was

the Although saw we third cancellation reversed trend course quarter, improvement continued October. through also in rate in this the

remains that expect the counts higher of Given fourth especially made quarter, the cancellation recent to being case and cancellation we the bookings see than further on high the rates are travel pressure recent that year. prior flexible COVID for considering with remainder increased the restrictions, our policies of percentage

we other mix customer versus Booking.com's alternative changes levels. see monitor continued customers in year QX, to in booking to continue the of accommodations booking an In increase behavior. We prior the

constant third period. year the prior expanding and all seen the Mobile peak bookings on see contract The the accommodation bookings, October. in and However, as XX% our higher newly the continued increase bookings to stay the channel. into bookings second is in share in We've QX, summer the room of year-on-year XX% we through the our in one-third October October, And window needs. accommodations room alternative window a their quarter. greater versus to travel average both quarter focused the continue customers X% the year new saw approximately than share about continued booking as we booking made in quarter the length to progressed app, accommodations through due quarter on as nights particularly than for decline coming quarter versus in Gross in which represented of decreasing short-term this basis. the rates gain through to direct to currency third daily Booking.com's in a after share to nights shrink quarters last finally, customers booked we of us also declined alternative reported a in of moderate. greater

$X Europe -- wide the ADRs, helped year-over-year the was pressure year-over-year, ADR more for variable decreased and ADR booked increasing cost in night the excluding U.S. our marketing points decreased, our a declined markets on QX. like point significantly declines. comparison, of of And impact extent, was $X.X lines third newly a the only QX. As mix revenue we An industry percentage decline. broader reduced in a room lesser quarter and higher year-on-year. the billion EBITDA down booking to other, gross by of of XX% about couple bookings cancellations, the in Western and in QX lodging Consolidated of in offset and of like expenses sales with XX% Adjusted fixed billion while line offset

we as reduce the with expenses demand new operating cost environment. the and As in Glenn to our actions we optimized our continued structure mentioned, quarter aligned

expect in savings exit personnel reported our by be and to significant the will line. in recognized channels. expense decreased highly we is a Marketing other demand charges related these offset expense a which saw XXXX, in more the line expense, costs paid actions we variable than the as in year-over-year for XX% reduction line, However, restructuring

to response the substantially spend we diminished marketing reduced our in addition, environment. In brand travel

losses levels the expect transactions, and in decreased reduction other expense the significantly expenses with year-over-year we fourth as primarily due our less a marketing customer needed expectations our credit as well in to our reduced support processing service we associated reduction provision XX% to lower rates transaction below volumes. as expenses Sales in as We for outsourced saw and remain to in XXXX debt costs quarter. in collection bad payment prior improvement an relative

year-over-year and We expect quarter. down other will expenses sales the be continue to in fourth

due approximately accruals million and X% The reduced in However, Agoda, restructuring to level OpenTable year-over-year expenses actions completed extent will decreased volume of personnel the Priceline impacted KAYAK Personnel $XX and benefited primarily the this we be by bonus headcount. the in the the expenses by business. quarter. at see lower decline third of we

fourth personnel and expenses within government lower as expenses the anticipate $XX benefits further packages by in the XX% quarter and year-over-year that as in to were reduced already related in as remotely. do about primarily programs lower as third personnel-related to well indirect the in not employees expenses government other Netherlands million will from in same quarters, Additionally, decreased aid UK. driven the personnel taxes to Currently, decline office future quarter. working G&A T&E material aid we expenses discretionary benefited we did participating such expenses expenses it largely and due expect expenses, the we from personnel

continue fourth with third in X% technology line G&A down We saw the expect quarter, year-over-year. in in the year-over-year up that Information to decline will we the about be meaningfully were quarter. expenses

We slightly expect that will fourth IT versus expenses the prior year the quarter. up in be

cost The over not which separately recorded works approximately actions fourth in did to Finally, charge record respect million, of at that that which consultation almost Netherlands, expect estimate we'll months. the impact to up could be the we this include organizations, currently other I coming restructuring Works workforce end Again, relates of Booking.com collective the in in could Booking.com, councils Booking.com we've you fully to At make to phased-in annualized activities of in the employees plus XXXX. and expect note attrition our be these representatives. we Council, countries, primarily at update Dutch employee of September, reductions We reductions rightsizing may personnel hope estimates time, which $XX its XXXX. run affected to XX% these initiated XX that the quarter million and Booking.com million between and related are with UK in global the charges restructuring early to by continues $XXX we into to we results. non-GAAP rate vast quarter where restructuring rest our actions about and restructuring to in personnel savings and operating the of to at XXXX. remaining in the $XXX the currently expenses the and estimate of to the included the third produce and our and employee representatives change, by It's $XXX some will consolidate in out these Booking.com. restructuring in quarter we first million, these major announcements second the wave P&L. charge With in broken charges the subject

million by $XXX to million of from non-GAAP pandemic. XX% related versus quarter SBC This QX goodwill net a in pre-tax investment projected impairment financial of reflects Our than non-deductible income income reduced due recorded net full to equity $XXX an related operating million low earnings due estimates. down investments GAAP we for last non-cash recovery GAAP on our Non-GAAP expected XX%, to non-GAAP for the pre-tax in COVID-XX EPS primarily $XX.XX, as operating the of in is prior including of a gain our tax impact million rate impairment basis, QX of quarter year a which included We of unrealized the Meituan. our benefited had the higher driven relative disproportionate OpenTable a charge KAYAK. KAYAK expenses, is was year and to year. charge OpenTable income a as significantly and $XXX in expenses GAAP longer we an projections and On to $XXX

to from expense, remeasurement There We and FX $XX the million recorded $XXX impairments the bonds. tax on non-GAAP in Italian matters. French of euro we the also expense our related losses losses tax addition, quarter gains remeasurement results. In our was excluded unrealized our the to pre-tax and a million

our on position. cash to and Now liquidity

about gain balance investments. generated to flow Our to cash free $XXX capital as an had of of on high this flow balance. QX while given We our balance not $XX.X impact of a quarter the year. uncertainty of Change our of driven ending and by consistent $XXX check-ins, operating pandemic. million we down with June ending halted until strong our by and increased in million the cash both a of shape in in cash level use versus working operating represented a And quarter maintaining resulted third prior $XXX million $XX.X on into the flow and long-term billion a timing initiate the visibility recovery. created as the effects quarter, in the receivable XX% the due we've high the We'll in seasonal the comments billion unrealized investments approximately cash and concentration increase position of cash repurchases well of was positive in which focus accounts have liquidity better repurchase will to continue COVID our last due and to stock quarter,

recent thoughts quarterly will Now fourth I instead, additional our trends. we'll for approach with October results, our better will our of a top our from color on quarter. but which guidance, preliminary quarter, full Consistent line to not some sense the help last give provide you you provide

imposition As earlier, room nights in room about the and and and rates quarter that level booked year-over-year week. nights in I recent results, of for travel October of of and the impact COVID-XX cancellations Room cases XX% our restrictions considering newly demand last will likely higher fourth night especially respectively, the XX%, December. will October's in reported and declines travel vary at November the declined on and and the mentioned rise from have

November, they worse in be October. expect will December declines the room in We night were than

negative We will year-over-year the our the first primarily pandemic. to wave decline decline on room timing points the to we to book gross what due currency than revenue to similar and stay differences ADRs, more than local in of expect saw reported the due we points the several fourth expect percentage pressure in that declines gross quarter bookings in several quarter nights be percentage will less bookings by during

challenging be night quarter. growth full positive EBITDA the XXXX to on adjusted expect continued spoke a reductions Given On August, in and from our room in October, note, our the will outlook we for fourth very reach internal statement with where expectations we we it we ADR further were pressures, in a income you if more positive major with for now to all when compare year we're ahead coupled emphasized, we fourth as quite In while our to cash environment. an the And conclusion, metrics. more challenging with expect are difficult flow we environment, quarter quarter in Glenn third be results even pleased a we can have confidence that execute some of decisions what made we and optimize against help we to a will control. actions us will the business. We continue that taken difficult number

We from through we'll position. these have in your a take that confidence actions, now emerge We'll the stronger crisis questions.

line please So can you Laura, open Q&A? the for

Operator

Instructions]. [Operator

come question first Your Brian from Stanley. will from of line Nowak the Morgan

Alex Wang

Alex Wang is for Brian. This on

And comments talk on you of us just appreciate you maybe packages Booking.com payments details in the And But the First, for little that tests all the launch business see give expand the other year-to-date? well? early branding? be any you're you can then in bit the all Maybe second, seeing areas accommodation. learnings? And appreciate talked I do sort that investment us what globally main early a or it as in I you of whether sort a of U.S., to of want you how business, alternative U.S. supply whether may where the to about doing might can sense is or any flights to as on or -- priorities what

Glenn Fogel

talk the then terms he and of little year-to-date. go I'm you strategy reverse Dave if about talk to we'll in Sure, order. Alex. you wants let I'll I’ll accommodation alternative I bit we're take going flights, about talk where speaking. It's going, Glenn a don't and to -- to around in what want Why

States. started We for things it flights. the doing with in about the talking So we're just Booking.com

as talked important with about flights. always So connected a But flights trip this Many it's very very, is it. vision, very, start people very of I've early. part

we believe more important great offerings the going customers to funnel our have. we and be to an way into see all that it's So get

example, offer a package, is trip offer as want one to important payments a have it, discussed, overall for want which to you we up, platform. our do thing, -- a to part to at you of because, we if Now when payment connected have you very get

one customer to suppliers. and do money combine from be then it. if got distribute take way at you're able to upfront to to You've That's into to the to the able price, you can't not all the because willing the that do different

So I am early, And some be how these some able important -- to with back you, give it's and but later and future, us, and see pleased up to some the us doing. running. on, idea are of you things to very numbers it's we'll come in to hopefully,

were improves people for about crowd, last of back single is about we may about important customers that Regarding many we've by the because big proposition having you it's accommodation, clearly XXXX that the the the talked went safety, type around wanting important quarter to consumer. talked our part the more lot always business. selection, a an in the alternate talked accommodations to feel issues alternative We for how, offer when it quarter, it people how world. time. of reasons to to know numbers second the they last the of about to compare that we talked of in up they it we every a And weren't And That's want. accommodation important terms

So we're continuing that. to do

talked we build home in inventory that individual getting out, know the want and like to certain continue certain we Now should we much of is we primarily too, in that the not alternative the we of and people how, accommodations, too. as I've types needed unit, know as geographies because also were U.S., about particularly have that one,

don't it. out that we're want offering continue the when give they make this So of And about and strategy want sure to to terms they that customer want, you in if to know year-to-date. anything is question build David, what I

David Goulden

to question. the and much provide far way best numbers response can color, in a so by happened are things in the Perhaps I QX. what's this extra in and Yes. because skewed it’s talk about the year USA pretty just to Alex, QX really little quarter Glenn, third the

over [X.X grew QX have million] that, listings in business, So And business low single-digits. around little double-digits, business alternative that to space. our the mentioned low whereas bit business. in we remind We or context you, the a alternative accommodations we domestic just to domestic core growth give the grew a the of within rest more saw the in

we that just for you growth quarter we how other in alternative a they accommodations was third each second in area another biggest gives did the in the quarter. Europe, of So saw data improvements relative in spread kind vis-à-vis to The what the point. saw

Operator

Kopelman the Cowen. Kevin line Your come of next question from from will

Kevin Kopelman

I was kind dig specifically we the of if to understand maybe past kind in through a how and or numbers described of and that going the us the April reflected that in bit That the compare business, gave hoping would shutting situation we on are you in we just are far just process? from the what's just in be of down those us. countries how along down, Europe week. locking in Europe, far Can into walk trends that you along so you in process you could the little

Glenn Fogel

making could be, certain these projections you're changing are actually I've put more restricted because area Certainly, to do though, say, by what going are though, involved gotten talking of I was to each do impact there's nights. I'm even cancellations you, going in it in to our not lockdowns, because pronouncement knows they a get et is that Kevin, booking. they thing going of some open trying our course, to answer public is or Now not there's field, question. the going new think What and room they're are how we people now in the decisions able do. on to new when the they're A, up, impact to none very where and that people It's not terms new the Everybody I'm going a compared for hard to a say people selective travel new those who economies make you're up also going governmental people travel to be to that "Hey, the And strict or affairs going talking about do way. to meetings to as-booked of full us say, from it that, be obviously are a making Thank Sure. make governments, regions. a very to going from week-to-week, we to easily a to what are that, to I'm cetera, planning restricted." can a away, change. is leaving who restrictions government. thoughts of B, I it is are to booking. lockdown when And obviously, complete these day-to-day. day we some that concerned sense for I'm can say And right see that April, there; be in either, I'm lockdown, to to on could do that

different regions. because So people come increase the But something immediately their governments doing at a best is and infections potential always to is do travel from in try are not that lockdowns. complete looked as

anything due have So I you add? disruption you a that. do these steep you'd we feel I than know want David, anything give going I are to And to that more infection lot increasing very don't very, of -- rates. can't unless to still have

David Goulden

than different I wave of much back -- obviously I -- as of hopefully much also But bookings Hemisphere, you, little the as harder said is of long-term the those things well. factor weather I the right worse Europe, it's getting travel deep to of the think winter a we we witnessed But first in the gave April, the a North winter, on back the the are were into seeing a in numbers We rest the for shock to warm deep. the just we course, what without of upfront, see just V of in plane. the they're of in believe to on saw declines April as you to terms just do going but that global a canceled. average particularly shape a be as environment think that that Glenn, to trend got we months in more because -- we're U-shaped shape book in deep more clear. was the were be obviously being but add, Europe, that clear not now, we're it want they're We

less probably are substitution we quarter the as the winter April. There the the the we yet going few than months to third be but effect were third than factors So enjoy in to in a in domestic quite to bad not worse as just saw in from were international quarter. able we average, are to But on. going it reinforce, is

Operator

come Deutsche Walmsley from will Your from Lloyd of line next the Bank. question

Chris Kuntarich

Chris is for on This Lloyd.

marketing that about ability should those Could walked or on step deploy made the of starting kind your them, have you earlier well? are a And any as comments marketing additional we up? shorter as dollars but bit through some just little any U-shaped you guys think cancellation recovery step up. about, rates David, cancellation you balancing to the talk are know, performance windows You about we about just kind anything talking as to think just should then well you How XQ assumptions? performance with in rates there? about booking guys I making specific of vaccine of that as else some to

Glenn Fogel

So smart out point going the to Chris, to impact significantly. the the performance is ROI that marketing, you're cancellations on fact

spent going taking in to rates virus seeing up whole are if a we up, canceled Even paying immediately end the that we end and start booking, how you you we money revenue. action a end when clicks the want up up gets in of they be So to don't going nothing. for that booking bunch for not are

in we as our So as absolutely, our of travel, terms restrictions expectation are rates restricting immediately up follow there's go performance direct a readjusting in up, marketing. terms of virus relationship. And

correct. absolutely is that So

yield, the any or of safe, not vaccine and of in a be we terms made to going effective terms distributed not. take be declared long In to when call will is have nor it how

think the in I global quarter. large anytime first nearly is a certainly read the not anybody distribution news these expecting about everybody, so all don't distribution soon, or things. though, has I think

not we're So based on our all. decisions at on that

saw hopeful, demand. and summer. pent-up are in saw what and in what was that we happened seen did spring, the government though, that rebound, we There We help, happened actions the we've

hopeful. made And you curve. the we're David, So

we explain why with can on we're what further are you -- doing. came doing what up we So we're how

David Goulden

people that we vaccines. summarized vaccine just Glenn, Europe change more might winter believe months. I much you towards through in early hopefully, that in environment be the the coupled be Well, think, a going on be that Glenn warmer better we call become expect of the of again and And weather the be with won't progress and or well. making the believe that and come. to to when travel to it when U. there one maybe also to climates, I spring available, spreading, there'll said, is prospects the better get and We're a But as be ability We up weather But we thinking kind think not on that in about America but slope news. the that, hopefully, North will the there'll warm hopefully

was spring, we it We in are recovery, will see the optimistic in the a saw I when be the think this it year. recovery summer as we that strong

Operator

from will from question come UBS. next Sheridan of line Our the Eric

Eric Sheridan

to you for for sort realigning testing outcomes channels while it's and direct might looking in ROI? in realigning seeing, low sure of you're of some maybe on terms activity to a you and thinking the booking demand end broaden question of on the of of color you quite promising little some give the just multi-year in making about mobile marketing And of be are a a view? learning terms that's just for of maximizing And want long-term the the additional could maybe and Maybe bit you're medium the color environment a some that on you long-term. I far what in out over bit how us payments, for advertising. your accomplish can if you're Glenn, little

Glenn Fogel

Sure.

So performance in long-term so on based you the of marketing, know, all as terms our we built company of view marketing.

though, We -- need always increase able from and awareness talked also being that do we about that in to we've know, perspective. to a brand geographies, with certain

States, that just and campaign. One digital very out of a the the tested in small, brand is very things we small

a to digital You For And digital is we may brand it see have That base. America a how was would seen on it, that effect Everybody. did do.

demand version important the a thing, in get for. York have thought and and New may very very we we out, cost, we awareness important ways but seen really do very digitally, digital like it coming States. comes what different we'll or areas company an We're that that what better the as that to You that having always under-indexing continue we and terms what of out are, not low figuring And not. can it's get is but our actual up values and you let's out in as the say, there, X do But printed testing print that certainly testing. are stand Times, it are where your ROI back, we the to with is always

the goal, marketing the people back. loyalty, can to is Of If price, we come about, the great the course. for most great and the directly customer to people service, great the for people come is money thing to ultimate all get all things providing Get course, talked having back we the service. that selection, always great of get directly, always really come to us pay important instead

to anything you In terms where give want that if to of in of you terms further take why is? mobile, David, that want don't one,

David Goulden

points in a with positive part the of the mobile. with to mobile, business And fact over the the Yes. in continued it major ago, increase to give a quarters be increasing in also mobile a Thanks, we line growth said little But Glenn. we to No direction. now. provide are pleased obviously, but to you were that's app, we just that continues additional data hard color, several and XX% very

deliver to So a point, they the during connected also give Glenn's place real a data also but are direct way. where with today, as more out trip a That we'll trip booking And that. -- can customer can the capabilities. on break to place not not we app, more time, those at multi-product ready the customer where, is during you get we points actually as positively. a very well the but quite will can particularly in trip interact super just process the appropriate important. the we're We essentially, live just few business, the trending But but not and also

So the in to move direction. pleased that we're see right

Operator

Anmuth the of from line Doug question will from JPMorgan. Your next come

Dae Lee

on This is Doug. for Dae two. I have

at mind? can single First in types work update you guys the the of that these all property that the the view then given is one is in how on the platform, than having previously on messaging have get environment travelers holding times? through second type -- that are or worse now. types up right time? to my And seeing overall surface on right property challenging you right competitive expected competition certain Are your right property better to an is you And doing traveler your the strategy you are what's who question

Glenn Fogel

the So I hear take take one. well. let one. didn't first me I'll the it let second David so

times, online the that who that because it’s potential -- a talking market. report about Commission, out, of year they travel out In the to a there's just interestingly, back competitive competitive fiercely few weeks overall in the because so, are a And has lack the travel a new terms the And only or believe, fact, market, the pandemic, whether interesting it's been ago. of competition of put regulators in demand mentioned, to it's continues it's boom ago fact, coming And is a hard regulations competitive. exist. but -- business considered always extremely terrible a just in or European report,

it's recognize at be. lot don't that terms I clearly, think regulators used of So there's to a that, all there less demand too. than fact And in changed the

I think and the always David, Yes, part? first will be. competitive it's always

David Goulden

do our could property travel to Back you mean, is I of that And that dynamically. business property type really very question, sorry. to obviously, I'm what to is or to the see about. we kind we type. match property how all just type travel. first And travel

using kind of more artificial to focused and more opportunities, course, or optimize and match of course, traveler our for going travelers. learning results to know be more our of visited Therefore, letting machine we'd you your recently and we're, search suppliers site, the intelligence. your our attractive The the prior accommodation, you. So behavior. sites and to upon themselves we're market to we the needs much our more both make But domestic available the about

spent information number time across can that put pandemic. health our extensive in the to and that on of a any site you properties during Booking.com, particularly you'll done what handle the see there's about now If dimensions they've recently, safety

of of So and that intelligently a matching. it's premise absolutely do we mapping business core kind just how the operates that

because we benefit the results year of having Now have people something year let side-by-side very a value to basis. of our to provides of alternative compare search traditional customers. lot. a the you. course, last But hotels very the coming priority very we unique back a this same it time of to accommodations different can on because as both modifying a you time And filter, think you would expect, platform, if a you we this comparable pandemic, that compare this very, and optimizing get that quite on for And range and we've broad lot been of search, and

Operator

question will Your from from America. next line Justin of of Bank come . Post the

Justin Post

those you high would get of profitable? think bookings? were get the margins XXs. big you I levels cost some your out. this margins. pretty kind back about to margins -- savings whole that about when looking is they're for other side, Your think to EBITDA can be give us the of industry how being in And you 'XX, about if to to when opportunity wondering talking main higher you going an to achieve your is able thinking more competitor do look just I'm But know you're you

Glenn Fogel

David, you about thoughts long-term why in our margin? don't of take terms that

David Goulden

Sure, Yes. Justin.

of you me a Let give here. couple thoughts

fully So all, margins have industry-leading and expect and returns. a continue have attractive, puts to of business first couple of we demand our very be takes. to when There'll

strategy. important dollars. into margin but to new to like and air, margin build be margin like business the So healthy obviously, payments, rate, will for diluted to those we will our be again, example, the will And and things contribute rates, dollars margin products dilutive as but

and But expect we be few get margins future. next takes. industry-leading over into to have You we prior back into recovers, full in bookings puts about the rapidly, we take long-term those some as the as Between industry that we to Obviously, related when will have incur as to expect to and we turning recovery, to in long-term. said, the expenses as for our example, account years, revenue. the marketing grow bookings to thinking there'll I now

margins kind book be business downward periods those that pressure during we operating of as again. of reacceleration, on So there'll build some of our

expect As well positioned. I to in very said, we long-term, the be

Operator

will the Mark Your RBC. Mahaney come line next of from question from

Mark Mahaney

Okay.

especially of there's condition, it about a on than you're over you And there? reason of that's during any lockdowns, already will already now a the greater wake I'm is a that, have over trends embrace if having guess, know almost Is I call, a across talk to think may you recent business? that the accommodations or the the that covered traveling? that think repeat the could think just to more if are is wondering that provide that alternative sustained you color, recent modest behavior, do apologize, more of were this crisis, -- Just you sure do much in accommodations, semi-permanent a just people in kind to kind willingness to part they seeing Europe. but I could permanent kind in be change shift how you shift you in of alternative this shift consumer And pre-COVID seen something lead happened you a but

Glenn Fogel

Hi, Mark.

we've this restaurants, about in happen on These little drop very people. make of restrictions and talked make move in about in governments seen impact I So talked being very rapidly earlier days. when ability a closed. non-essential X significant to to the Changes changes Things going as certainly shops immediate travel, a quickly. last prepared terms remarks, of terms the things

our I tried but this systems. you can time, actually it haven't In fact, watch on

go an out and watch You very, can announcement very quickly.

the see future towards bookings impact drops or cancellations can You in for stays.

correlation So there's an that. between incredible

be which way on because people this I one interesting, the of alternative I accommodations, thoughts the terms hotel and hand, getting to beginning go the would crowded crisis, not elevator. want sure to infected of thought it's might that going wasn't In in -- a risk my or

people alternative would treatment place. be of they want wanting may could where rooms but of separate recognize industrial I they therefore, people, that an strength, disinfecting be from so the professionalized and also entire And combination

go and the us you do statistics more as share very we've long maybe So much. people for of trend has accommodations saw in alternative where think the we contemplating I the going for It's significant in I that we've believe hotels. accommodations, that increase just area for than QX seen seen in that has early and been using alternative accelerated. time to very that trend shift the QX. Clearly, then a on more not been

tried I it. And And have there year you've brought X you it forward people In it, believe is that on consideration the like fact, try now in future. in if because or a it happened or put years continuous to would for set future your what the once perhaps whatever did this. a shift you're now do going

not when XX%. the winner things something Well, alternative getting going even a it offering book think and By going the from is at was for of -- that to site, still a keep customers. people popular Now talked going yet that let's of go different QX they're way there's hotels. the we we accommodations, about to offer a we the stay. that our combination And Hotels course, meant know come platform of of that winning a we're to be of of lot the will big to different one all When with total, accommodations. data makes them our when for share let’s what on, about of in XX% forward. And our to when us say I And on it that's they where because our they number, is of types both. in that's they're us. offer want both. a great We they types that bookings -- really new who be. come of many That's terms were are stay, looking sure to always most them to accommodations

Operator

next Your from from Stephen Credit Suisse. will of Ju the come question line

Stephen Ju

Okay.

your April, in more choosing option? to given having seamless and cancellations So March little cancel hotel a I Glenn, during the trips bit out, -- go refunds a the on what you flexibility consumers probably alternative getting your cancellation-enabled is would and imagine would to partners -- digging users and versus little called for higher-priced through accommodation. trying Because with are went bit the imagine I and with

any you you new your is So to prepare consumer new the think to might there for cancellations? might work supply of need what normal do be elevated partners

Glenn Fogel

Yes.

the arrive things sense a go who? travel was that making issue And much, their for? well, majeure perfect the their going then back, to everyone of desperate wait. it if now; They customer now. what's I'm who there. world continue I down and will give all booking our So having there now. pleased force became, right is it is doing the giving even can't money happened crisis really at teams acted And closed. a of to the of year the also It's booking "Listen, -- can't into much return actually back? they're Do am with the a we window, did that, money the the cetera. how aren't to about they to get give The on the going how our with money the closer proud into can’t wanting saying had will that. get doing the time of uncertain. we they have our people to Who's doubt Again, of situation. people that countries I person that accommodation. say, make it's In it? their a understandable. better. back from way same many of of accommodation. made it." I'm team We the no would that long hotels But consumers so them, going shutting beginning money to point proud had cancellation what And with -- so, money. those own et don't service even of tremendous And We out pocket really the need around nonrefundable, you when suppliers for and deal who have access that and taking there But shift was with see free now but who in non-refundable both It things we're those just done to essentially money were in need around option. There's in -- people it's actually And to There's the customer these the

nonrefundable, are government, it's going not you're that everybody money you now accommodation, buy if if situation. a non-refundable to of eyes even book wide get -- many that, is not there Now getting your after open that by or a much months back. is money when close-down you back the a you're because -- aware Every your

expect refundable back to go the don’t because getting comments David, you’d I better say? do on behind give any much of all, though do pretty the what know price. aren't want you people that this that so a at one. And will time of over I benefit

David Goulden

our I -- think first, wave much were the right about hit. in everything back some all including time than bookings Glenn are operating partners. ourselves because the February books No, be are levels obviously were is Typically, at lower force talked Glenn. we lockdown which enter, we in before -- are the into on major you and the the we there January, covered customers fewer areas, important. in the differences. and Obviously, majeure we're now that we second as -- euphemistically, There'll were

do the flexible the all had towards where isn’t will policies, So that product although there be everybody's we've been extra some. that agency we -- cancellation customer cancellation as we we options have workload customers, the seen particularly slight and also leaning more also some mentioned, expect the practice on which, favoring recently also -- that flexible. service, of of to I And are has course, a

be to it come will different we'll in I'm going and I are situation on May. we sure it to that with we're April terms going this open. deal of along. deck" able be eyes there hands So foreseen some "all into quite think in how back things haven't But the be vis-à-vis

Operator

come from Your question of next from line Barclays. will Deepak the Mathivanan

Deepak Mathivanan

then April measured obviously than saw to restrictions are There have restrictions, ways consumers Glenn, better and I But and in travel shorter you know wave demand now. in it's early reason but what probably the not the be May? during some and second things will volatile any peak are of to second that the wave are found right also now. safely government somewhat think and

obviously, about vaccine wave the but behavior Just first changes will how be second the curious think outbreak? versus to consumer in ideal,

Glenn Fogel

the saying as, out summer, case, nice certainly, Northern what to I Deepak, was be the as getting are from entering I have think point warmer. locally But it's there It Hemisphere and you the was lighter and such too, the not say, to travel you're in lows could and David hit we're getting you a wherever the expecting said, were. think counter as away holiday hard it spring into of that and and I'll facts, we're could April yet.

middle or we’re and If you a get out, far near in maybe so lake, away easy the pleasant, my to suffering in I drive a near a get go wanted maybe great say, to city dark. beach, that the whenever, outside, holiday, can little rates, just infection it's to it and and let's you drive winter significant okay? take going a were not was the of Not car was in so

right of a the stuff next way think think second about factor. knows? wave, I think about to Who not months. So that's couple kind now, right of is this

is we so right will to And services, crisis. what all everything all our up suppliers be end; products, I soon, know come And will, But we have this is making important and coming our demand even we wonderful that thing way with that's a a of our real traveling will and pandemic a our be that very we our not to is in think for do. the one about set up or and soon. because hope the with start term. one not, Whether think that we I we're will they'll put on, news believe, if it comes have there'll the says rebound people they sure do vaccine working long continue end, back vaccine focus relatively not, there systems, the again. when out even pandemics

Deepak Mathivanan

it. But Got and you on Clearly, there's growth? may. if I drive-in. And for accommodations what broader alternative Are type accommodations, alternative accommodations case domestic it there's the under second there's then like now. alternative as driving seems use of seeing in like the expansion a you longer-term Can question is on said, well? stays cases elaborate marketplace, use you appetite

Glenn Fogel

there's Well, in a very very, because use right research. haven't operating widened definitely we're different a case now. I done any world

in want I many live use for I the need I month. live accommodation to We in out decided, an I really get apartment bigger people city cannot to research how nail have the family there. of space in need a and did got not another one-room and people done say, working the We kids from alternative of to because the said, the home, a next country. down that. going just to are a in place I I Where place. don't crazy. get in a how go I'm many that; studio, this do know that out can't I you where

of So driven that very that have there of never that could up. well accommodations before. lot And are a the alternative uses alternative existed

to holiday it the is the continue of believe, important. I use, think property standard any in the again, run, for people And though, build this, inventory I our that's goes single long very in into do not. the type set run, consideration use now why type or having experienced long for

Operator

Your come Evercore line Lee of ISI. from the Horowitz from question next will

Lee Horowitz

market any the I disruption into on cost-cutting one the just where variable overall were lean all the of but up in demand the and and depressed XXX environment, million some you to environment been And to to then of the Can could. permanent that U.S. with using the thinking be a out helpful or say, shifts contextualize and in get on XXX your understanding about that, permanent. you've guidance on COVID the speak down and some XXXX how at that back could may coming market third relationship be One, levels? share seeing underrepresented? my U.S. in management you be guess those obviously quarter. to obviously, the strong if of Two may to thinking about demand could of this way operating second, in some the million, that balance nature on sheet lot that's that, pick travel of of is perhaps of is markets you're perhaps perhaps some structure share any associated it you nature once savings coming to, is whether cost we Anything be there permanent digitizing things that of customer maybe how I that nature?

Glenn Fogel

of U.S. bit a little add anything David, part the and can talk say you the to you take I then want first don't cutting. the that about cost then, why of and So to

we of I've a growth opportunity our that's great better a U.S. and for by the future have said That's where that are things many we doing to the case So us. in the in under-indexed adding times U.S., capability absolutely,

how how the much now now, of balance of terms In of doing anything. is right not a -- to lean, terms do cetera, for in right amount tremendous et there's you sheet, it, mentioned demand

is said putting want more just the a good right awareness a how want we always lean use We've together right of brand to and trying just to that big performance money. and do marketing, be it et make to idea the not brand to build try campaign or we're So the we them now, into get we way of cetera, more way. to frugal our customers that in me

that flight doing absolutely also more the alternative packages. doing mentioned So supply type getting one are in something and investing properties, it's of we'll obviously, U.S. that a already, we in and that. I that's have down I And accommodation coming mentioned for the mentioned already going putting and in about and now certain and I road, up

we So of making the that reasons. different in set have U.S. we onto partners up that are which our and payment network. and sure so building right that's why an and go can We into all have building thing important payments, the for on out important lots hotel

out this are what is you investments, literally all we're And brand nobody David, So to to are a things that to giant listening do way. anything? in go add do to going giant, where campaign going we're what winter. that doing. is we those But do do is now and right not want not and that it

David Goulden

Yes, I Glenn. Thanks, do.

from third of U.S. the to look major quarter, a lower in decline the by far there the point U.S. performance markets our view. of for than other strongest rates than Just markets, territories. was the and were us the The to the we average major -- relative of the lower when across any

not brands we're reductions Lee, business So from you're but how to also think from expense then, the performed. directional million something the there's of in as annualized $XXX $XXX right, the yes, $XX million about to other you And Booking.com. to talking side, on of market share, well. give cost terms There's million just

as So please piece go that well. don't

are those volume. collection that in business, service, It's the You're related like to things which like so but customer functions right. tied of Most search. credit volume-related functions to entirely not partner largely

cost over obviously replace need we expect years, base. the next that do come volumes to back, as So as we to few

volume operating the areas we're business. to cost other that's get the beyond Already It's start in in a The of can and something at alternatives, we've crisis our take we So efficiencies recovery. and would that much doing middle normally. the aspects do immediate see crisis we're business look and technology savings more areas we're those deploy to we looking a all talking of beyond at full. what now we We've because not sorts the we we're including about right of the we how are focus. in in can as out cost once the now, not hands got getting

costs a always we but talking place. some fixed running the sitting optimize, amount you been about the year. we've course, Of of bit a if hit business fairly this to started not things those a with large there's of of And excess in first the in before spring recall, efficient We're opportunity. little coronavirus

bring drive also prior And continue we back costs in the that we had business -- lead we'll come as the to returns that efficiencies don't volumes. those fullness the the all So to to of we'll the in as back sure to business time. make look to business that

Operator

call I to And Fogel back question. that will like the closing to your last now for for be would remarks. over Mr. hand

Glenn Fogel

you. Thank

to travel and to thank want hard to their closely once want through again available we partners through course, so partners the to have many as thank try to options been our very want thing I customers you our us. employees with book our from do, to times. I So who have And who who just in And say first us of customers this our crisis. of finally, to work working thank all continue help absolutely and to all choose these difficult I get the I of supplier

near term a Please company proposition, and take good night. create the remain I definitely have steps challenging value today tomorrow. confident are long-term the be to our focused in we better will on to While safe, we and be

Operator

you thank again, Thank you, presenters. And participating. much conference. concludes so today's everyone, sir. This for you, Thank

have You may safe, disconnect. a Stay lovely day. and now