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Booking (BKNG)

Participants
Glenn Fogel President and CEO
David Goulden Chief Financial Officer
Lloyd Walmsley Deutsche Bank
Justin Post Bank of America
Kevin Kopelman Cowen
Eric Sheridan UBS
Doug Anmuth JPMorgan
Naved Khan Truist Securities
Stephen Ju Credit Suisse
Mario Lu Barclays
Jason Bazinet Citi
Call transcript
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Operator

Welcome to Booking Holdings Fourth 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 afternoon, now, speakers to and Holdings Booking for Glenn I this would David like introduce Fogel Goulden. Go ahead, gentlemen.

Glenn Fogel

Holdings’ joined I quarter conference XXXX David closed we remarks. Booking details fourth fourth continues our environment fourth delivering CFO, we provide Thank results quarter this the Despite by be you. results am better on a a on travel to bit call. will out earnings his Goulden. that welcome in about call. by last afternoon challenging, quarter talked And the David very were expectations the that than to our

during ever briefly world down thoughts I I the the full year disruption the time, our our a XXXX were for Without XXXX. doubt travel strategic For my XXXX to and substantially global from has extremely presented XXXX biggest of reflect priorities results will on year will XXXX. and first difficult modern our execution Then seen share for and beyond.

XXXX, value in May credit team’s incredibly our by unpredictable on this COVID-XX XXXX traveler XXX spoke call crisis. generating nights year these results and would our us best that the and in you to profitable during and remain the provide relentless platforms of adjusted is book series efficiently. on our Delivering to room during and outlined million still a all earnings focused a the When we to operating our travelers EBITDA. to plans However, approximately efforts time while to of supply $XXX help customers million unprecedented our we through partners remaining we navigate service through

First, we the shock said immediate from of crisis. business stabilize the would we the

have and we a a we priority, decrease of cash the our of each expected at employees, several process optimize stabilized and costs our in over for executed non-essential have to in returns. the And continues raising and preserving Second, we of demand in our which the the few be cutting for be against entirely holding we travel health I by third, almost business can we and work taking transitioning across of business restructuring the XXXX, demand including, the the able to the closely business the brands it working travel we was next level environment to unprecedented process with billion taken supply and top cancellations, demand travelers and And confidently and in began capital through optimize quickly would offering. to travel said the to bolstering would through closing years. and $X liquidity buybacks In the company. offices to capture business actions the Based and over that debt plans. say travel stock said immediate to these we crisis, by the when changes completed decrease our well partners distributed we protect steps on successfully beginning the work a safety accomplishments position smoothly

volume-related XX% versus end year XXXX, primarily these As position. of a headcount result actions, approximately in XXXX our decreased

work of savings is to $XXX the never in about the All generally our demand million about annualized personnel terms We reductions efficiencies. opportunities business $XXX of in behind current now expect optimize believe needed expenses result with to in in are headcount for We us. the done savings for of million finding reductions XXXX. these cost cost recognized environment

positioned demand we business returns. well have Finally, we travel when for the believe

agile in we year capture and our We progress environment, during as these this has moved active appropriate priorities the very and performance against to leverage XXXX from remain strategic past being adapting XXXX. channels are in our marketing continued demand make continue key and continue to uncertain progress performance approach to to will at and learnings ROIs. our channels, We into have this we

that right marketing believe again In team services. deploy we encourage we use working time addition, and our to been when has messaging people once our is campaigns to the will and develop to hard travel

exact As we recovery the shape will think the more variants cases, again. recovery and The and will and rate which transmissible safe heavily XXXX, rate COVID-XX regarding believe on for more uncertainty is of timing and of the on broad including feel be of there travel. dangerous people helping step depend key considerable new to potentially a distribution, new ahead in of we the based vaccine about travel timing effective

of summer the relative we are what Germany, in We to seeing globally. early trends signs and are booking U.K. encouraging tracking primarily Western Europe,

in Although in case, same booking below gross time still we in where XXXX. were are at each levels point the

positive, summer course, entire nights, summer countries to action hospitality continue most or government stayed and helpful other direct see What indirect strength be to canceled. uncertain travel While distribution, industry. and booking will be will room these accelerate and would continued will and providing seeing the be world vaccine these while a booking around support into will whether the turn this it’s into and whether expand green advanced will whether shoots regions, we of trends season of

government modified and can restrictions extremely travelers will not be safe travel lifted international on who until are to depressed possible Additionally, recovery freely. they remains show are travelers travel travel or allowed international are to

The believe travel restricted that and take to we anticipate when on place it lows a was our the With strong through first was this to very lockdowns. still by domestic-oriented recovery. that fully vaccination and desire in is rates people many than saw this unlocked peak but depend have found As in future, in trends International we travel to demand great season, witnessed the longer a know summer we advantage level out people booked expect hand travel environment us to last high a part is a April adapted now as year XXXX the be for years improvement in and when strong of trip. in demand of course way you pent-up once been much a travel. other many be restrictions a difficult prior to more people from driven for will as demand will a came in has and predict the will our world, know, it booking around this But business We be We historically of we again travel. factors. there pent-up of travel the

control, Connected market focused platform can our and of primarily Trip the things payment the While growing States. capabilities the our control, better building trending strategic by we beyond business continuing positioning pickup we including, expanding in out against at the our execute our Booking.com, is United priorities are invest demand in share key on and our travel to

it flight favored payment Booking.com, access that accommodations, strategically both Booking.com expect we in and at important travelers It as merchandising historically supplier had platform we across enables to is hotels, our and by utilize future to but attractions. partners haven’t drive options provides help to payment capabilities integrated cars, Our alternative selectively at the growth.

platform for our payment strategy. Connected Trip enabling this addition, foundational is In

platform. payment This the approximately with in expanding progress platform and Booking.com’s in less make to in than up continue was X% back We from bookings gross XX% on of processed XX% the XXXX approximately XXXX. was XXXX

large-scale shift in So a this is dramatic our business.

recent payment will platform, improvements of utilization in U.S. Booking.com in about our which critical enable this optimistic are increased market. payments We

in and these We payment XXXX processed a of percentage compared XXXX expect XXXX. the beyond to increases see Booking.com’s on gross bookings as continue expect to to higher platform

Our our provide a payment bookers supported way dining by ground experiencing flights, offering and our to Trip from connected personalized the their the accommodations, vision network and initial intelligence Connected booking trip. a seamless in frictionless is all by multi-parted to ultimately experience for attractions transportation including

this products bookers represent help an an accommodation and strategic us important component additional expect loyalty allows acquisition increasing the flight and of to vision, which as bookers. Developing increased years, to cross-sell are customer and with those a because business, believe Connected overall and In our mix to journey early ability the drive EBITDA in of engage will an we revenue other opportunity drive Connected our frequency will business will flights towards incremental their robust enhance of accommodation we opportunities. travel dollars. to our us merchandising coming growth Trip Trip, remains We and the and will Booking.com building flight the that gives at product it

company the past one growing As travel world the a strategic U.S. market for travel historically of in remains mentioned our largest under have U.S. key and of indexed as the the markets in the there. we is share our priority

increasing market expanding our We our merchandising supply. value are awareness to on making great enable alternative consumer the our are through steps U.S. increase are opportunities, of and competitiveness our improving we in and several offering overall and customers, focused taking to sure bundling to payments marketing Booking.com our accommodation platform

we focus a and United to will priorities we strategic these improvement a three increasing We awareness consumer raising believe earnings The key involved, recovers demand of business capture improvements, be large building we and will we invest XXXX. these against of key which to execute in prior type growth for Booking.com. priorities accommodations supply as market implementation had we share opportunity globally, have as and achieve to with product competitive alternative than higher business inventory acquisition While travel believe successful and significant of eventually have built the is a COVID. higher this in our larger States, rates, when on

But this industry to mix business to a products, higher larger merchant will impact we have this metric. which negatively expect EBITDA our both rates. travel non-accommodation to continue We and lead of transactions in margin the expect of

Act want Commission’s The and European which an has proposed European Digital from initial is that regulations the proposal Digital Commission Finally, in to and December. keeping the I open, and markets to address support. Act Marketing fair Services we released ambition

and other known ultimate will rules be be on be, However, it what market participants. not will time, the impact us certain the they how is what applied or at for the might present

We problems we community work with which one. state service legitimate believe in the to of towards regulations tackle not we to gatekeepers the are are large engaged of digital the

in there of tough vaccines and global in travel is and high update us the conclusion, the wider during distribution industry. the remain will In of you future counts slow. days We too COVID case ahead everyone calls. area still are still

firmly to and I our ever we executing to is believe the over that confident some crisis future strong a we on our what in demand more a the this will in faster our will our long investing it footage, ensure against business recovery than travel over David am see long-term namely meantime, control, and strategic turn will at business capture we Goulden. point to I on can as enable and demand. we company exit a strong the well-positioned run. our comes In us build However, very in call focus to will priorities which growing this larger now CFO, I back.

David Goulden

avoid To seen Glenn, expectations quarter, term discuss in review in we quarter the and release. regarding our you, for comparable rates then first results are period our the model. results comparison to our color in have will trends longer relative the far otherwise XXXX and in on for for our the to of unless growth found good some the the XXXX, initial and operating GAAP XXXX Information Thank provide to XXXX operating reconciliation I non-GAAP earnings XXXX afternoon. and can be spread pandemic results fourth indicated. all so

call, case Now the call, fourth and in year-on-year we driven to the about then room we third into the our quarter for decline third the XX% restrictions. countries and On leading and the governments to about to rising our XX% COVID trends onto early quarter. November, saw and nights in November about quarter beginning October throughout reported with earnings many the European November counts, the by results including from imposition further in discussed earnings up over to respond XX% of deteriorating travel seven-day worsening

proved rate our saw considerably. trends to As nights November, growth a the point quite growth decline in full The room low cancellations. November nights reminder, in for impact the in early of resulting where declining little a QX we declined quarter. reported worsening the versus room XX% by were the improved The for reported driven include room night Europe, rates be quarter.

gain America North America region world QX. year-on-year than lower through of the North fourth the the about nights and compared total in significantly nights was regions our two-thirds and represented QX room other apps in Mobile earlier similar Looking QX improved QX rest room across particularly bookings, to in the our and share continued of were two-thirds XXXX. other regions. with strongest the over to and to Asia quarter both of decline in

XX% growth XXXX, come us We direct which room continue to up also nights QX, to we continue nights of Domestic reported see XX%. in room total just below through of our XX% was room versus significantly to about -- channel. represented nights see our the in

increased quarter rates the cancellation in to continue be QX. and also fourth Our up year-over-year versus

was the due we lower same accommodations. year accommodations accommodations region, its as the than for short-term was behavior. up in the nights in customers We customers bookings the increase about versus fourth Booking.com’s The booking mainly on mix focus the mix where mix are which needs. XXXX, average continue fourth of mix Consolidated XXXX. for room contracted basis. year-over-year XX% accommodations European rate in continue highest billion alternative of rates a reported the Europe XXXX the room full have the XXXX. the about in the alternative slightly is travel due of The revenue and quarter year quarter of to quarter third QX, decreasing slight saw represented we in Gross to The QX alternative The as with versus is underperformance accommodations in slightly XX% of accommodations while our the alternative customer currency QX. to overall the continued Booking.com monitor about within of full daily reported year-over-year declined nights, of on great XX% was to XX% QX in decline decline in which QX decreased booking other constant for a $X.X year-over-year. alternative to changes booking in

was we bookings relatively QX in third revenue check-ins bookings As gross expected, the that fact due than revenue quarter negatively from strong the impact to the less in in benefited quarter. from received

between recognized bookings revenue impacted our XXXX the that in year was than check-in, QX check-in less significantly also primarily timing fees differences by related in is revenue, full bookings the driven Our to as and gross which XXXX.

for significantly revenue percentage of our bookings as which of in with difference of full in EBITDA would revenue $X is have year XXXX. as revenue our the As the billion explained and higher XX.X% The XX.X% in XXXX, lower full these and $XX was a entirely quarter. revenue difference. year. factors, million in this a result XX.X%, coming XXXX loss gross reduction in a timing The XX% gross between been resulted percentage is XXXX than the line adjusted If by more XX.X% bookings than fourth almost been in of

extent like lines sales our variable in to While reduced lesser decreased QX. a other, our we expenses fixed expense more significantly marketing, and

almost a we demand highly have and to recorded expenses and charges The completed line cost $XX about QX our QX million was variable expense, saw our other environments. million year-over-year to significant million in personnel exit line reduced full structure in paid for and which respectively. decreased about the these line actions new align to reduction in and channels. of year cost recognized Marketing with XX% we full mentioned, $XXX is expense personnel entirely in We restructuring the for the these the expense demand actions, the as actions related Glenn a in year. $XXX related As savings million our restructuring $XX

fourth spend other reduction decreased due our in by call expenses primarily a working X% mentioned expenses previously. largely shift mix software due reduced service year-over-year, demand travel to driven to addition, to remotely. lower expenses discretionary such year-over-year, primarily payments I customer T&E, and XX% In expenses related with environments. expense year-over-year, substantially due the in decreased due as marketing and in security by actions to privacy to software. to outsourced expenses and cyber up in in lower office license response associated areas the partially XX% Sales diminished indirect transactions, Personnel technology Information centers. quarter reduced in expenses restructuring brand we offset XX% fees to year-over-year decreased investments were taxes employees a G&A

in broken separately non-GAAP out million P&L of $XX we charges net recorded restructuring our these are the have Finally, results. included in quarter. operating in We that the expenses I a note loss restructuring and charges in non-GAAP

full rate non-GAAP lower XXXX earnings, geographical distribution the XX% expenses as Our year a deductible and as of base non-tax XX% tax of to due rate impact was meaningfully losses. on well tax greater our than of the earnings of of higher

net QX $XXX and gain related than fourth in income following the re-measurement million tax losses change of expenses results interest $XX the to our from million gains the of discrete an the $XXX million the Our full by re-measurement driven tax change to non-GAAP of million results basis, our unrealized in year pretax FX losses provision, our expenses euro on is the bond. of and $XXX the a expected an primarily investment better in recorded We in the non-GAAP our loss $XXX operating was in offset Meituan investments, QX. in tax $XXX unrealized quarter, income following was on as pretax from the full quarter. due primarily expense tax equity benefit On million, excluded We a fourth gain better than of tax our unrealized tax million our quarter. rate Meituan GAAP and by expense provision in year related to of had expected million results. loss $XX we The GAAP

to with rate tax tax meaningfully our GAAP rate non-GAAP reasons mentioned tax from was XXXX additional of XX% XX% the higher than an rate Our goodwill due full driving significant non-deductible impairment charge, the year impact. of

position. Now and cash onto our liquidity

billion primarily bookings working the QX billion on a balance change cash cash We ending million had net investments. long-term outflow of largely cash recorded outflow by of the a capital due driven capital, $XX.X investment were and our Our The as QX. by ending $XXX operating to working the as our decreased in slowdown well to offset by of quarter, million in $XX.X which in loss the in in September represented quarter. balance cash by the quarter amplified operating a $XXX from about gains unrealized from an in use effects seasonal changes driven

continue We maintaining position last a liquidity given by have we a into of repurchases repurchase created the and will level shape of and will recovery. initiate to on COVID visibility pandemic uncertainty strong halted we quarter, focus of the our consistent and better with our stock timing high the have until not comments

which our indicated. travel, considerable and of timing the make thoughts to remind the we on comparisons continues to spread declines first are quarter of about driven otherwise with to were in There recovery new guidance COVID-XX, slightly January shape XXXX restrictions. the Now the travel for to time. and unless means will we including you be uncertainty this room for increasing the strains night provide unable associated at worse by QX, additional detailed with

driven improvement some back starting in by saw of to part However, regions improvement have In night the January, weeks, continue into middle domestic night have February. in room travel this in domestic seen an of growth. we most positive recent improved bookings and we world declines room

out In the the continue Western room versus than seeing window To an summer night February what and of for saw a accuracy, could to expansion room seven you domestic night night are better lesser as days although a a the in booking room we saw QX. continued that those we improve, snapshot about In we this the January, to with we declines travel recently overall XXXX, versus window were contracted predict have give bookings percentage of including expansion extent QX, increased. trends has is share be points if last the to difficult While few declines of Europe XX%, QX fourth quarter. in of booking XXXX further seen into

particularly for booking These that booking XXXX. they offset summer Europe, seeing relative region As we Glenn and these the extensive what in same recently are have in time the to noted stronger weaker travel the currently gross Western bookings are XX% globally restrictions U.K. are Germany trends of in bookings countries in and seen you trends of the period remind were where summer we the booking due we at trends Western Europe stronger are and summer by the significant to in near-term majority cancellable. being in

also that are Israel, UAE notable encouraged in and see to making countries progress are U.K. some vaccinations including We the

highest rates are and the We available in lockdown same world when on after return We lifted that are the versus broadly are eased confident growth travel quickly Israel will period this we return to happen the people to domestic Israel travel. in when where and February bookings vaccinations solid saw Xth, restrictions are was within saw recently vaccination national the double-digit in XXXX.

be Turning said, declines income we to QX. as QX could the nights room better statement, than I percentage points few a expect

gross QX room continued points a decline to than local on ADRs. expect percentage due We currency few nights more pressure to bookings

revenue the slightly QX to bookings the expect for gross rest than to quarter. of assuming bookings continue more improve We decline

level expense in will the at decline as same We QX bookings. expect gross marketing

in basis some a they variability based in were and expenses upon QX will dollar QX other expect to volumes sales We QX be what where similar land. with on

dollar were benefit personnel basis, offset by expenses increase and increased primarily expect to in a than where expenses in we costs, the QX QX due higher We of in a related we QX SBC saw in on have they restructuring amount actions taken. to savings higher seasonal partially

be realized will QX. full expect personnel from We in almost that rate our a run restructurings

We in in on it basis. were QX as same about be a dollar will QX the expect G&A expenses

to currently the in we privacy restructuring half to increased than and QX than We higher real charges to $XX related expect to in primarily the half that About due on they basis, $XX in to expect of security, enhancements. million data million the IT We of and dollar estimate system about expenses relates related quarter. a first will personnel be these charge actions some actions investments and remaining record other were be of the related remaining will half more Booking.com estate. operational

we what QX. seasonally EBITDA loss quarter, QX and that we report just to lowest QX is in remind you Given in revenue than greater explained our expect to a

For want full our XXXX, through walk will I year. impact we the briefly operating factors to year you that some margins for topline expect

We recovery timing expect the improve shape environment remains but that to travel XXXX, of during of uncertain. the and

rates remain ADRs, We below continued negative bookings our expect on occupancy to where room they nights. gross were pre-COVID result lower pressure our will being in than putting which

of impact in to of As XXXX. bookings, impact will was our in I this more versus but acceleration revenue bookings exactly XXXX a made than meaningfully and by revenue XXXX quickly and our negative revenue. than this gross expense costs of bookings were Due bookings, expenses. faster and check-in there a XXXX. depends how The as we in factors, lead of which opposite sales the we will meaningful there in customer timing service factor significant expenses benefited marketing accelerate due as incur bookings expect check-in room our majority XXXX in outsourced XXXX and that negatively percentage less alluded another timing timing could our than time in earlier, The revenue upon XXXX recovering items expenses when our most the these $X will bookings our more which gross will differences how way, happen are in our nights bookings the Said experience other be made impacted bookings gross see will also we on in dynamic in gross payment if we acceleration check-in, deleverage This to booking. XXXX marketing processing XXXX be billion. to have at in in our that

and smaller sales to A likely and to expenses they reduction XXXX. reduction be The with the lower variable in our less will revenue. help We in you comments XXXX. how think than in than to XXXX be few most XXXX other about compare will expect

occupancy G&A T&E, expenses to expect down digits help this Personnel dollar a taxes double are We ones a variability basis. XXXX likely year. be during this. are enacted expenses, versus to towards and some XXXX by that To driven few factors to new GST from similar understand with better, on you if quite be the are contribute there office

was rate the annualization expenses. $XXX about this first the of personnel million XXXX the than half was Less personnel than higher in of quarter expense Our actual from people during we hit rest expense COVID was XXXX. to XXXX people added the run immediately business of and before expense added

by will expenses restructuring Our headcount approximately reduce actions million. $XXX

these will of by impact an together versus So reduce two to XXXX. be personnel expenses million $XXX

be add $XXX million As of we the expect XXXX end in in to business, This little a continue invest than about the higher we to XXXX mix will year-end product with at headcount a shift towards positions. is due modification XXXX. a be of and XXXX and SBC factors options higher to in QX finally due in XXXX. to some of to stock stock the expenses XXXX personnel few than expected in including the issuance And technical awards

security, system enhancements IT our Finally, strategy. as and due to operational higher XXXX expenses investments XXXX to Trip than reported be Connected in in privacy in will

XXXX, more As with diverse forward we and think offerings are earnings beyond a larger looking we business prior being that with to to we more had COVID.

also for and higher on market will focus growth the share. We potential

two returns of the time, years travel like to to not continue And your attention to I’d factors. quarters the at to that will before considering pre-COVID-XX believe We business shape draw levels. it and be when

Flights with much business. the to add flights of rates but growth within connected The a also and is expenses other will EBITDA plus first payments other and will some margin lower than as lower expenses revenue and and in shift the verticals traditional to mix scales. additional will growth of connected other these verticals and accommodations. sales take added continued on require revenue rates personnel add accommodations and The bookings will at revenue and and personnel but business at expenses. Payments other add offsetting other and

service grow customer will were expenses The credit took expect to means is that personnel. add volumes in to and volume as actions in XXXX, we we restructuring business. XXXX second levels the including need functions in mainly we beyond The collection. This related back

the before, in come consideration cost ways to but include efficient business. As think we the of will future it’s mentioned when work about do we this thinking look shape the this important back. to We

below expect execute focused albeit continue can Glenn priorities. rates, and what we conclusion, most said, have against levels XXXX. on strategic we to we industry to in likely control our margin remain In continue to EBITDA leading As at those

We crisis are will position. this now in from more through these we confident than a ever emerge actions stronger that

take questions. will turn and to the questions, over your We to you I will now Grace, for line open it

Operator

you. Instructions] of question Your Bank. from Thank the line Walmsley first Lloyd from Deutsche [Operator comes

Your line is open.

Lloyd Walmsley

in one, impact marketing then, performance impact guys line guys kind coming spend in of a side? you changes may I as on is result those have XX on to been Thanks from revenue efficiently curious a more of on better that the David Apple’s other or out you kind just this guess, of kind for related expect the anything any of iOS I expect to obviously, do cost reductions guess seen first, of better you there I there? following anything you the last upcoming to margins. variable comments lot -- you second your efficacy of made, couple, of learning said, guess, items Are might kind Thanks. if business. And retargeting, questions. a as just there percent up that you the that are

David Goulden

you one want the a and I will the one. -- Yeah. take if don’t start Glenn to on second then Why take first see

more looking So, efficient within for the we become ways efficiency on always side, are business. the to

$XXX mentioned, of we million. variable these As cost tune the about reduced to I have

As come It won’t work work we costs ourselves to of look they what back. The beyond think as We done. come we back. back more at will those is ways will but year. volumes will getting back, efficient to will extend we XXXX, come that likely bring basically come XXXX through think this what be right-sized

of we Lloyd, resources, at where major do continue to to et continue the in The months. that. we technology do inside fixed drive we done how of where of to within of So major business. personnel we for in our cost our we will can real across those efficiencies across look more at not procurement, But And cetera. we our like estate, think, efficient look terms technology, have job location, COVID, activities to focus where some costs our focus business. kind surviving I things across also been a efficiencies deploy last the base, we good look continue That’s more portfolios, our with do ways part the being them the across variable XX drive or can we partner

when So we more look get that’s to well. else a also environment normalized at something as can we a take driving

Glenn Fogel

Lloyd. And

Lloyd Walmsley

Thanks lot. a

Glenn Fogel

things one different performance changes Apple Your by in marketing. not all trying certainly on be continue government and change looking but question one of about digital evaluate impact sorts of things. people world different we companies, we that focused in just we only to and differences impact this any we these thing Google the some have doing can really is particular because things to mentioned, marketing of We But and short-term are cookies also will believe changes, do of certainly marketing and good. like best about do talking ways what that mean see that companies the for think marketing, is that in regulations that in I and good making just can am and you laws the the people all and terms

we make make we past. that can were can we with adjustments, actually better we the and than we much happen we to changes, test can in data off believe of sometimes changes so out come and better faster we these when things can things have So do

adjustments years of impact is been we and So say will have so marketing able world the us the make any make I to changing we can has as or terms right in and am changing not. of there for nothing I now, to be we for digital been so on kept and adapting future. top It of need XX we confident have say to it that took far as so

Lloyd Walmsley

Thank All right. you.

Operator

your Thank of question of from you. Justin Post from next America. And comes line the Bank

line open. Your is

Justin Post

travel could of think position a in anything means to your more and better about a thoughts Thank wondering about you you how about in but the A getting that larger hear your with your to that be Airbnb we maybe a you. maybe hard individual from what miss, obviously, lot host than secondly, And success suppliers, on and take within you couple rates, and on help of love suppliers will Thank think recovery? pain has in suppliers, can just promotional you Europe share Glenn, Great. industry. host How the you. front? been first, think then, activity market do would recovery smaller questions,

Glenn Fogel

Sure.

I to alternative stronghold we would am Europe. exact regards how accommodations, much I that going share here. don’t to think and call in talk our in regional certainly, I to talked So is we the a like Europe little But not it area. we in about whole bit

there I area, to want We property. area are because less property, throughout know we the in single an things say in upon. home single where always But can areas. other you better can think are we the We are world to the better that’s I we improve increase that that

people. that So and pandemic they the of for with that a from shift people there away an be issue bit some was isolated wanted right now a other is to certainly

future, back with that we do, a So to amount they question see U.S. partners. up the the Europe for any it’s more That is demand That rates, when we to certainly, than than is, valuable to to have very, property do area so them. is occupancy you traveler greater that is And less right are because content in of demand there of the where we terms we them there do and us do can an I time to ways is great as closed in a than high a certainly, being single more much them a who in together to doing U.S. get the for with place out come are going is to where are hotel sees very looks our our to in relationships, I have distributor, their between the showed there we there maintains towards focus supply the a we sites, when safe partner believe improve they go, that when health with It’s occupancy that. it, a as if terms now, face business. you a different safety demand right being as largest I they and travel, they distributor on and for past nearly hotel home difficult we coming we is trying rate because put in on need know things platform they have see relationship not world much we the the things they but they in with that don’t their things single and of much, up Look, as don’t home help sees world. say have in the have product the give demand will area. unless do that then to content prices going greatest spots a the think more in hotel everything of are was much the and continue for environment the hotels come all In how there said, promotions and the looking as do used to demand, try demand, believe the shelf. let’s with suppliers, start benefit to a to we in now on don’t very hotels. different where more ways But demand The with up continue take can travel. obviously, homes can of they new more to group your user come next our what second about be split telling regard up or their and go can can to that to help want Europe people

them place So work best sure come demand continuing more and get incremental to get in we a their some they are of are for with and do to we it. make to them that to

Justin Post

you. Great. Thank

Operator

Thank Cowen. Kopelman you. your comes from of Kevin from next line And question the

open. line Your is

Kevin Kopelman

for an had about you Great. marketing? compared some U.S. consider company Thanks marketing side being brand your on the or priority in mentioned comments of more that past your follow-ups Can just increasing share a performance the focus lot. Do talk the on about there? or and you year do on more focused market to that gaining you I anticipate two you the it

Glenn Fogel

a absolutely more with focus been the have Well, let to It’s priority. me Kevin. begun We start on U.S. the always first one,

in me certainly But So have of a made don’t wrong that get couple we changes. area.

specifically more U.S. focusing are We in the

to and in company progress under and any scaling changes business. are for share to make U.S. we had the I recognize being we a state way there, really where which continue and a very the have very, That maybe presence said, we we many have scale some that indexed that make of global we the in changes think the make doing the we we years we believing As best need same that. come some be large to market, will to over many, we global very was we that solely to it and not business try achieve the particular a

going amount we want are getting. that performance not do about in I we of should brand our business believe of we all am the remarks getting we talked of to my going whether sure increase to we the doing are In supply, alternative be absolutely say I are the here. though, things do we increase obviously marketing, obviously things playbook away terms share in of to accommodation, will we terms I in prepared or that doing the to make to terms a give awareness, the increase are the want total of necessary

Kevin Kopelman

Got looking waves quick are at a XXXX clarification that COVID Is year-over-year then on XX%. were That’s great. at being week about you And down initial the all? those the past statistic by numbers if and a the it. just gave numbers affected you

David Goulden

is as I two over do… everything number. said, We years Kevin,

Kevin Kopelman

Okay. Perfect.

David Goulden

QX this you gave can everything things a because you are that you make are I comparison they with relative how doing way continues trend with line. how doing … to direct in

year-on-year figure basis… the meant to a you what You on math yourself can do

Kevin Kopelman

Okay.

David Goulden

number. your …

Kevin Kopelman

accommodation was located gave based customer you the on that where that numbers where or regional the located? And Perfect. is is the

David Goulden

where the region book gave flavor typically not a view. color. That customer We is is upon located. you It’s regional based

Kevin Kopelman

Perfect.

you Thank Okay. so much.

Operator

you. Thank

from up Sheridan we UBS. Next Eric have

line Your is open.

Eric Sheridan

I Maybe can. you Thank much. if so two

comments it revenue going the made you see greater first-party concept the some in whether get has wider you there and digital your thoughts give brand us do some have a be data again sort set, important you around are world and we on open advertising, third-party where bit pool get where the product up a brand exposure. of changes the little maybe bit things forward, of especially data. your wider consumer a sense build have of programs channels that Can And that you little out in to the depth will up and you of of Glenn? are How see begun deleverage to how a even maybe or pace love maybe you rewards Following and better. back sort if sort with you of calling and of loyalty aligning aiming guys as to leaning marketing of

Just so can bit little much. there? of a so we timing mismatch Thanks understand better a

Glenn Fogel

Yeah.

genius them. that that money forward. give directly that’s is the the new talked And to people talk an something part bringing strategy a to is lot It’s cheaper lot a getting our really on. us this real at loyalty in to the of a and hope going our of awful going we to to is about we some which to by us keep certainly and customer. one providing how thing an of ways come believe Eric, to we about version, are value it get loyalty it that talks does believe important Because is numerous we have we times really which critical is direct of back do because we home costs So, end plan people Booking.com consumers as something about continue we

to keep you real the going And about important in through to and future, be direct. these to right different certainly all doing it going In are get but back make ways one question, the on we is uncertain things to coming is your and also spending you back. the you things keep do trying worry get we right to regards all people I how we the things are one of of sure now the first-party, mentioned to customers, second to are come we So third-party world that important could how to are always new them can keep coming that the could create money cancellable. the done is The upfront, so money are person that nowadays books, being things only issue revenue. business that you on but because much pay is the of are about

spent very when up happens the in different. is sudden was You your don’t doesn’t know change increased you money a ROI end it of it revenue and all you thought

in we to right best about future can’t carefully and more I anything that’s say we demand. this data the know because the increase approaching in that’s and at slow to to a don’t be all So is say have look at very than we closely we to what very cautious can But going we why the the it That don’t want are way. is be now. yet. it the We how handling are very, quite that, we on hand, look other

David Goulden

that… to just Glenn, then, build And on

Eric Sheridan

Okay.

David Goulden

for lower the just money will spend is XXXX basically to we drive to talked revenue XXXX and se. answer. performance calling timing expect I do per in in to normal that is that about a the we on about you Eric, little that’s ROIs more fact color will to clarify. just you deleverage for XXXX give revenue the performance It’s what marketing to the deleverage bit not in or in The us talked mentioned XXXX with marketing

Eric Sheridan

the Yeah. Understood. for all Thanks. Thanks color.

Operator

you. Thank

we JPMorgan. from have Doug up Anmuth Next

Your open. is line

Doug Anmuth

your across for secondly, seeing the how else? Trip taking significant just just some then, year. for of to most subscription-based the perhaps it has questions. as or to several you we platform think Thanks some that programs you the experience changed, first is of has Thanks. the are curious time of am a Great. the months back Glenn, see product travelers? and coming wanted are for Connected will view get on in changed in the And travelers or them or what something just I terms the space that’s

Glenn Fogel

Sure.

of talked about back may we the and somebody have flights, before do, a for seen great not did thing. That’s in selling quarter now So they one is we last Booking.com that example. look, is flights, past things great have and come they sell which a thing

Another we now. thing attractions that people continue our now our out attractions right actually to are build buying area,

And value in when to We so buy that us. more and and creating people they are our consumers. putting way what places way can and things are haven’t come the they content we and we do back things would we more attraction obviously stopped will the from combining for create more see together have more trying

parts that’s that part pretty and of it’s in we to something journey. be. of this really very, I early it still excited very So think But are the is

to We something are regards out It’s such. that I different going are and people those lot a and really have In still see model don’t are to comments seeing people build buying that the it flights as that. subscriptions such. doing. of people are beginning on explore

you We will on do that? if see how it want David, plays you, to out. say

David Goulden

No. comments. No. No further

they out. will play see how We

model been it has these have successful as well that, what think way certainly is happens our I say, in and other very and a think attractive us, for is model the you we spaces. is watch we

Doug Anmuth

you. Thank Okay.

Operator

Thank you.

Naved have from Khan Truist Securities. we up Next

line is Your open.

Naved Khan

air on lot. question I Yeah. booking. a a ask Thanks to wanted Hi. just

and there air of you it’s kind impressive. any can in Maybe terms then this experiences. your booking you question positive that your tickets with attractions pretty So the other in the might was side Europe? integrating in I tickets is I on had account number are insights environment air share sold think and results the seeing on be on early And just of

in direct mostly signing should partnerships How increases own relationships? selection is it up the about think With are through or you you are we driving, that your that?

Glenn Fogel

So, of so number model out I cover bookings pleased David better air fill that question you at see and it and were completely. on the we don’t in yes, end, there. to lower terms there. heard cause But,

ago. brand we ticket didn’t from coming by have in and more just bit the things the start — to out talked the of of tickets since too. from of our about tickets Booking.com the air though Agoda air way decades past selling course company than little and I air also been two the One also is sells KAYAK point has

selling add and when of this it’s number. in very a our I are is So air these more have you tickets easier out to very brands very, want it point numbers. hadn’t the positive very, small past, done two early And

wouldn’t pleasant see, I except but it’s much to third-party regards on take these to are too our that So for In we coming are from attractions Booking.com, suppliers. yes, journey.

us give They them. inventory. with partnering the are We

So we it. sell

We have relationship. a commercial

that’s way anything first, be everything. lot, Again, and forward. to to can you you which We a or scale be it’s do want are but ones pleased one the decide you go can’t

get. need with already to want people a partner So up lot you lot things people easier it’s set a do things when for more to things other for the you to

buying traveling to are So, I ticket attractions. I don’t be and will back Again, when I actually start pleased anything am David, about pretty on [inaudible]. air that. pleased missed I the know more people if

David Goulden

Glenn. got I think you it,

Naved Khan

you. Thank

Operator

Thank you.

Next from Ju up Stephen we Suisse. have Credit

open. Your line is

Stephen Ju

you. Okay. Thank

merchant So, close to suggests Glenn, XX% are that XX% bookings, payment your like it so seems rails you now of own of pretty there. bookings full running your through is adoption

or like it alternative we accommodations you -- cases So up. users non-credit the is card I higher start working are otherwise? over seeing entering because months this are of start other phase, growth coming hyper to you primarily flights guess, how are recovery usage And more platform use going a for that or formally or a whether you as feel it’s at

in reducing year you that the with restructuring So and spent mind, I last headcount. mean

thinking up very I at do can feel are on and wanted get latest bump you So hiring this time spin feel to or you like Thanks. whether you resources quickly? properly like you your resourced

Glenn Fogel

payments it So let will anything you one and me related start case terms that. with in want in to David add more turn the second over of I to to

we we been restructuring important are In the have need back, where over satisfied talked how and of jobs from we help to made said also and volume now. of both much much cover how But restructuring we we right people people related are think our in remarks about I in with we point, volume as more to terms way we and that time. efficient into a dealt very hopefully prepared through this, comes the bring the that

get on. strategic XXXX I the different types of fast way hyper things don’t hard see progress vision, in talk start we progress are yeah, on incredibly So will to in our of I rate see David always can we business the different about the will going soon working in see and the we in so to a get we see as strategic as being we payments all and come we know happens we and let can that greatest up, the fast can. major as value, of we will of will to our are as -- terms we count we how what ahead look, we we XXXX, back trying -- going in any as travelers platform. want because it greatest change are give but comes travel And back much to

David Goulden

Booking.com. in let sure me the and what try wasn’t me where our of at But Yeah. clarify, Payments, clarify said. because payment evolution are you we let I quite payments in

So XX% the mean the XXXX. being the agency Booking.com as prepared was model. in They bookings year. will on majority our the our are via still remarks, transaction. from last XX% payment we meaningfully in payment bookings in are at That vast gross our not of platform processed That’s that percentage up said the of process

for super flights different XX% for Connected Trip think accommodations based everything usually and fundamental that we this very et honest be place. one use of expect all continue the because it’s where partners enable have and to increase deliver can year really we also the is important to to in payment also important we our cetera. to attractions, It’s to beyond. number hotels across customers able in a want reasons, us channels, adoption above to markets and benefits our So enabling to be certain like we the select paid Payments merchandise

said year-in, statement evolution in some where some breakeven I our We stay update we out, the minor we relative still payments are the am potential platform in view scale was point still differences upon to focused here. are platform breakeven think with the in years payment investment expect that of now Obviously, but should prior payments. we the it say I of breakeven on we we from to of to and are approximately update level year-out, on the an in we from from that of our income where out XXXX. situation an pleased and all payment scale making were grow as before. platform Booking.com

Stephen Ju

Thank you.

Operator

Thank you.

the Your of from next Barclays. question from Mario comes Lu line

is line Your open.

Mario Lu

Thanks Great. the accommodations. for have on alternate questions. I taking two

segment believe margin a the XXXX. throughout So you had profit healthy mentioned I

your you how beyond, we the secondly, So you alternative as or how think investing about own the would is acquisitions? can mostly force kind between margins through you hotels? we to describe look to the forward you that are should Thanks. of sales XXXX accommodation quickly guys the U.S. gap single How supply there, the close and compared home And trying strategy in it pick to

Glenn Fogel

property, as because is nature. actually is more So professionally of It It the two do little by a the we I because single one with cost perhaps for home does out, up because contacts. makes it didn’t end with believe costs. of didn’t of have a and healthy profit much because we run you more those more you you questions, go why together company the end single home they things as just up not have pointed as was

more to more a in towards have and to down do people it their different briefing that more up more people and that absolutely you able now easy to on understand are industry about is we who are you as is running us somebody They it for to the we debt people direct these out in that are just orchestrate are is owners rent more to a these made to correct. want able want provide though call to people else. single briefing where to and supply kind much The will are it product they put their of the deal those signed with. are going need this it who though, is bring do will elements to of or home of them, the it property the people about a to are to they who single own professionalization need all our site do. past will things but we person we trend So handle different is onto have that more single all of they amount managers and who it like That’s managers, platform channel it try these who and by right able the channel it. property that to themselves. and and The What properties seeing need to and of professionalized this

know able we of home than regards comment the in that had industry, will to I single don’t professionalization of because So to since faster properties be In more you future the on up M&A activity. of to M&A past. we pick we believe the

Mario Lu

helpful. you. Thank That’s

Operator

Jason of Thank comes the Bazinet you. from And from our Citi. question line last

open. is Your line

Jason Bazinet

If I than questions. is had lower be and structurally alternative Yeah. will two be to otherwise would be I larger would otherwise travel than to COVID going positive cause cause just business you Trip as Connected in payments on a is a just, mind forceful move for expanding just implication more you Can what the that be bit? business and your we to way?

Glenn Fogel

somebody we go So happening out listen say there is I as here. what really will the with hypothetical, think to

in it never perhaps of it it people set. at use past in summer the a alternative thought something perhaps and they So or consideration using last accommodations didn’t hoops or looked they is would now have

any is and is now competition. marketplace happened going what much the there now So forward, more going a what larger of travelers look is is supplier in has for any amount at supply that individual means facing

that have so the about distributor In the of the alternative talked is Now largest official been hotels. a product people which have our has great to of distributor both there the why amount earlier and business because now. we accommodations home one a great

consumer stated. this all able they come, compare saying a great us come contrast when have can great Understand great, place and we prices. the all review by the being different the and one continents previously So us is they benefit. That to different give types, to all where left different

-- with what I be happening. And I versus I back the know will in home go is mix any of will hotel. So am and the can much will we pleased how have future the it way really guess. don’t

a up maybe be have I the know a that’s accommodations But of people are in getting upward, pause, years not and and more from function higher. seen dip I to going going we sense alternative the both. the think down interested provide pandemic view, not that continue know. more or step don’t my it’s I in that both to over relevant we point many we going trend keep

So for me, I it. pretty am feeling good about

Jason Bazinet

And the side, enterprise travel? BXB on

Glenn Fogel

about question a -- the did. that. of what I lot was, the David, travel, Well, I hear talk BXB there’s think didn’t don’t exactly maybe you

David Goulden

clarify so either, don’t I didn’t it why hear question. you the

Glenn Fogel

just Yeah. BXB yeah, question, repeat question it. BXb --

Jason Bazinet

Is question The and causes it COVID does no was, sort have two level how investment on bad, good, focus does it Trip? payments initiatives? Connected BXB on of a of Yeah. those if focus of travel, bearing the influence structural and it enthusiasm around long-term sort your your is on in that shift

Glenn Fogel

say BXB travel… you When

Jason Bazinet

Business travel. travel. Business

Glenn Fogel

travel, Business got it.

Okay.

saying long Look, it. for have Got Okay. been I a time.

a it’s I to while think before be going up. corporate It’s up that will to same going be… picks leisure travel the way pick

Jason Bazinet

Yeah.

Glenn Fogel

and travel a as of never share total it It’s back. going may to take get longer

Jason Bazinet

Okay.

Glenn Fogel

certainly really but don’t smaller in certain and to Do some the they the shifts? yet, to traveler. to ADR does share. What know that business our that go make catered hotels to have We be In a are way. high but business which eventually trends eventually because will going that may industry an case, businesses measure obviously will the than it always to larger past, absolute the be grow people in travel, travel continue yes,

Jason Bazinet

Yeah.

Glenn Fogel

of get travelers. many not to ADR leisure and and going are Well, those travelers of those they customers a they need get business anymore travelers. more have as leisure Because percentage to higher high we

demand. are people and We point leisure again come where that can that get

future. what long another feel about So again good thing I it’s our

Jason Bazinet

Super helpful. Thank you.

Glenn Fogel

Okay.

Operator

over is And any that Glenn all will turn you. for the I Thank have to Mr. the today. call time Fogel for our we remarks. CEO, back that closing

Glenn Fogel

you. Thank

of the to family the the children Marriott than closing, I and the not so greatly brothers we life mark grandparents hearts I as XXX,XXX year been to So, began and he we have said globally the profound X our as sisters, pandemic also left is and so hard the in recover, fathers, them. a the want tragically and he be we go reiterate little can. are lost, bring we and see well want lives dedicated to lost million will recovery it’s deepest in since United more to States that organization. all than the mothers, industry in been travel on and a to his alone out industry condolences will a as have Sorenson, travel very my fast and working of note, back it there more entire missed. to industry Arne sad And as He friends so and will travel to

you well year and it to employees challenge, the to our positioned all last customers XXXX most better throughout of our thank our Thank to one Please partners, Good rose want be a giving of for are horrible tomorrow. and to night. I you. to by met us who safe. today, the dedicated we end where So got

Operator

conference and for today’s call. This so you concludes ladies Thank joining. Thank all gentlemen. you much

now all may You disconnect.