Booking (BKNG)

Glenn Fogel Chief Executive Officer and President
David Goulden Executive Vice President and Chief Financial Officer
Justin Post Bank of America Merrill Lynch
Kevin Kopelman Cowen and Company
Mark Mahaney Evercore ISI
Christopher Kuntarich Deutsche Bank
Brian Nowak Morgan Stanley
Alaxandar Wang Morgan Stanley
Mario Lu Barclays Capital
Dae Lee J.P. Morgan
Deepak Mathivanan Wolfe Research
Call transcript
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Welcome to Booking Holdings First Quarter 2021 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 this than which QX I'm conference first Goulden. business, Booking first quarter reporting CFO, start David accommodations remarks. countries was certain improvement the our nights of Thank quarter results afternoon in versus am our X demand improvement will declining percentage points you. execution. team's joined XXXX, increasing pleased to further travel David his solid first our fourth with room driven strong I by welcome on by was in provide call. XXXX by our And in by signs our to XX% This and details decline. quarter quarter better

new the for As more vaccine we of have the effective depend treatments effective future. cases, will travel recovery on and the we heavily rate distribution, believe of said even and severity COVID-XX before, timing rate hopefully, the and in that broad-based of

COVID-XX vaccine stage in that the year, distribution In to booking countries, have world, XX% early optimistic around slow key traveling frustratingly and distribution from each of Americans up survey that more feel found in said of pent made support successful Israel, own distribution encouraging the vaccine distribution places the them that vaccines we a programs. the While hopeful vaccine work benefiting our pace of demand. seen We about unlocking the travel XXXX. view and UK are In earlier of our over in the these trends. we US remains most is

ramp believe European will which see to distribution, we now start in we booking vaccine the countries, countries we more starting to that more strength world. to see of As up parts expand are

some general warned worse. recovery in in While as complete the a must in situation other there such tragedy may signs recovery governments time. World for that or including India, difficult of actions as such some staggering travel may the countries high Last and that an is people global are human enormous pace We're we continue extent from it's Furthermore, to entering be predict to area future. international and be and can international infection what there barring restrictions, fully reintroducing locations country. from travel impact Any these travel travel our lockdowns actions taken recovery, and performance, on be when to have opening the Health us mindful seeing recover for current cautious actions cases getting many may pandemic encouraging of are some the is in now, countries, not situation unfortunately, of accelerating. is countries underway right governments happening such the in week, reminds where COVID-XX an take And Organization everywhere. that increases to the in the

demand. US am vaccination our US strong US well, the program pleased is I in very in quarter first travel the and on rebound the where going Focusing there's with results

as strength These and by our we these QX room in We the our domestic our results of the room the highest both driven ever all Priceline performing month For booked versus April. helped strongest the The and XXXX was and QX Booking.com with growth quarter. for US in bookings air in that tickets US good in the had continue the pleased drive night international in and a night And we improvements continued slow. Booking.com country. products trends during very our each positive were still US, of improving our In our this travel strengthening it market major company. see QX, is into know benefited business results of important press to to were one brand we strategies, number environment, single quarter US. first had strategic in most ahead improvements

will travelers the the case, promotion is marketing of the booked promotional be US. travel May. employing seen US Back have to launched Booking.com brand Travel drive by may in credit awareness consumer activated $XX campaign And methods Booking.com April, we this travel the US one the in This end that we that a promotional post-stay increase You who to for Booking.com of engagement in in just of with offered the app. example and our which further app

alternative focused Booking.com's remain offering and to we also new and the accommodation in US of the supply quarter. the expanding on platform targeted We properties signed in the

to the recognize there's breadth to of US. more work improve this be the However, done we product in

continued first strategic against and other key we the platform payment to priorities, the Trip building expanding Booking.com's Connected execute vision. During such quarter, as

increased Booking.com, supply at progress Regarding our in our recent integrated US. by made partners through payment adoption we've the platform primarily

by Connected attractions, to back hotels, both have vision vision first including by provide Connected the across strategy. multi-product all previously, network, of payment The booking initial partners transportation, home. their trip dining, Trip this mentioned offering for to our the seamless from our bookers, our ground to multi-year foundational cars, a experiencing Connected thinking Trip accommodations, is travelers our connected intelligence endeavor. provides way and arriving personalized our and enabling options alternative flight, a for supplier out flights by and about supported I will combinations, favored is As payment frictionless, full a be experience platform our Building ultimately and and attractions Trips

before end state. benefit our steps to this will business that reaching expect vision taking ultimate from are we we the the However, long achieve

For journey an us product example, other flight bookers. Booking.com opportunity the in sell to flight ability to at cross to a and allows with gives us and services engage robust our their these accommodation bookers early developing travel

We given in have its these historically focus Booking.com, accommodation only past. the had not at opportunities

now launch Booking.com's As Trip, be We a can countries the exposing increasing working This the in live supply bring this room for year, the marketing continued XXXX. as to we with we building XX the bundling real app of the while travelers offering recent these destination. is Booking.com. think that large XX fully potential our about are customers are was build benefits most customers be with our the now on Connected are combination like supply, product. of process with as up products travelers Musement flight book we given of potential early, ability offering, as in transportation Booking.com's our trip native to Booking.com's to last see while we'll to the in partnership available flights, On opportunities, as app. channels attractions will elements beginning with in by and their enabling focused place offering half to attractions now journey major on travelers with We nights ground the the of in expand more to means well segment announced UK. economic of represented of breadth expose of more we as to the than customers booked attractions, year. along And have to to well utilize And traveler products. recent through a our to in flight in engagement these the collectively the strong ongoing we Viator partnership our flights countries one increase

Of our our our course, becomes in the business. which invest the the We've of trip been key some platform to and priorities the strategic app importance will app, for many the the center of experience. as I app app of connected for indicates continue time, mentioned – investing

In the see which most third app. quarter, to Booking.com the travelers the party our customer on better two-thirds lower loyalty, directly app. over according majority of with through mobile app bookings devices, globally research through to engage more now was travel addition, first are come We costs, downloaded a leading our a acquisition of opportunities firm. we and the customer see in

for goals to I carbon exact pandemic. We do and our achievement in travel was well Holdings am full including I that pleased proud in to the XXXX. timing our to to public the remain inclusion and In the the business, Booking Booking recovery of in neutral in becoming And the recently prior intend look of conclusion, milestone forward sustainability. even and future area to is particularly Holdings' is our a This towards diversity travel. sustainability strategy, significant make very of for and shape on our one making of operations XXXX neutral one One sustainability progress carbon remains sustainable working uncertain. is operationally report. and were we

am volatility encouraged and the others Holdings that of eventually across being getting the said, now worse. priorities. I proud to we confident our countries, position well, then, are seeing are see of strong and actions and in teams However, our by against I'm company's with beginning execute continue and globally. between recovery recovery That to a will travel we I'm we that some demand in likely signs experience some strategic strengthen take Booking countries to to recovering our recover, some unfortunately,

getting just XXXX levels about thinking demand. our are back We of beyond to business

a and building growing call into faster Goulden. more now the I for the our CFO, that turn on We earnings David will the are business larger recovery to run. long focused generates and over

David Goulden

growth operating Information Thank the period review relative also seen some you, slowly bookings to regarding XXXX, earnings the spread on to during revenue results timing be the avoid and quarter. the non-GAAP that, our rates. Glenn. reconciliation take I'll the of our release. and in period so all GAAP afternoon. in provide to revenue for this first impact can And the will pandemic are booking than I more second you otherwise good the bookings recover comparable initial our XXXX, unless of the in differences remind far results To in found to trends recovering, indicated. color results comparison to quarter rates to of will due want we've

in our trends middle improvement first decline QX to QX into the our trends in the and versus of domestic the improvement quarter. the improvements was we travel we a of starting room continued The for call, February results we saw January parts March, into XXXX, on the continuing QX. in reported by our reported driven Now On XX% which discussed February, in in resulting night world. declining versus most X% earnings

QX, for and the very growth experienced country the night very night include and room rest strong Asia through quarter, March. the reported Spring we full also of growth major strong positive very month month by in were rate in decline strengthening XXXX and growth March. the in US room they the positive cancellations. countries reminder, the growth the night about US is each improvements QX declines continued had including improved contributor with Europe, full Russia QX, with impact room domestic for night was strong versus trends in of the night domestic world of versus a Israel. while a room In QX performing saw the driven As other to Australia. versus bookings was in the growth QX for domestic quarter. for same QX of The Break US and as The in room was And The a in growth, quarter. QX. in US were strongest XXXX room night

of QX, the While did counts of total the nights travel nights. represent for new least bookings, recovered case in recovered of Europe terms booked our the March, Mobile the two-thirds by see particularly trends room QX through impositions with apps, region remained soften over end was continue quarter it and in of QX. towards our COVID we least and rising in restrictions. region Europe to compared room full improved driven

up in significantly our both XXXX room sequentially room our channel Our line of represented Domestic nights QX in year-on-year. direct versus and QX, nights XXXX. about gained reported of mix with share room and XX% nights

continue quarter near-term be improved quarter, QX. XXXX the we but to first Our levels to of shorter booking window we it from the see Booking.com than remained higher in cancellation continue was mix The of elevated as bookings. XXXX rates in a versus saw in

less than booking in fourth window the did contracted it However, quarter. the

Europe. the those in last as alternative versus saw we into increased we the the in share restrictions, in further on bookings in with Western including the travel, expansion year. booking booking versus of overall as call As rates XXXX. the expansion mix Europe was and of cases, of February, continued of on about in term generally Booking.com either situation window same noted travel in summer QX for this January period. the are near out XXXX And time bookings, customers March new the or same to vaccination Due accommodations last COVID summer The QX very

mix noted we where was Europe QX flight last by in due in did As and accommodations impacted our daily in performance which growing by up is and accommodation have highest rates bookings accommodations we region alternative alternative Booking.com for were the first growth quarter, business Europe driven flights quarter, the of first Agoda, alternative strong a declined points mix tickets not several reported XXXX. XX% Europe XXXX, in negatively slowest percentage our accommodation Priceline our mix which of to on Gross in of a increased room The bookings have by bookings global which basis. the in the average is less partially of and than and strong decline in products year-over-year. in QX, primarily decline XX% quarter offset versus XXXX. Airline versus flight both booked nights, in by X% of

average higher mix higher region. is North a of declined which day ADR a XXXX, rates accommodations' X% Our benefiting from versus only America,

in were future less due at are to effects, decreased revenue largely by little bookings billion by to in which quarter in made higher the quarters, more approximately summer first expected in quarter rates these Europe, points Consolidated ADRs digits. ADRs than Excluding higher will declined of $X.X Revenue Take the and helped ADRs. the mix were XX%, in recognized. gross have was the to QX be in Western XXXX. a that in were check versus time typically regional timing quarter bookings which differences. mid-single down mix for bookings driven than XX% revenue in quarter the

during the last impact in we timing call. As our you'll take discussed XXXX on XXXX rates recall, of and

expense, our XX% take in timing ROIs our the Sales resulted to other, and in were EBITDA improve slightly million will provide in during expect Marketing XXXX. the highly which commentary we our We in and expenses lines, $XXX mix while revenue impact versus The to more lower expense like continues sales were and than line we restriction reduced We in than year, due expectation were significantly bookings to than be adjusted spend. broadly a in expectations. due expenses with assuming professional related expectations. them quarter. marketing, QX slightly a fixed were a the an other they in our an with a on year. line expense lower-than-expected for is they have of in all were Marketing QX rates booking stock-based QX QX increase of growth increased a by were expenses technology gross costs last in XX% in better in in personnel-related offset higher timing decreased call. lower reduction Information declined and the due in in to to dollar and direct taken. expenses were loss due line, QX was channels. QX variable higher in which expenses on QX on seasonal basis, basis than basis, QX paid compensation dollar were savings and on versus fees. our actions expectations Personnel line than to expenses lower higher dollar costs, a to expenses but our of they than expenses higher about partially in were QX in our QX basis to in than amount dollar increases primarily were benefit G&A variable they

the QX, of estate restructuring real charges I restructuring expectations a charges. primarily these lower recorded due net which $XXX our in charges note, We timing was than of we restructuring are in results. loss million to non-GAAP prior Finally, our included in $X non-GAAP recorded quarter. million

a an earnings. deductible QX a lower tax recorded $XXX income XX% a Our expenses higher an tax of QX. net $XXX tax rate non-tax quarter, GAAP XX% impacts million loss On had on the was our of the of loss of to by benefit operating of rate greater in million XXXX of in due of base million. non-GAAP basis, We helped than meaningfully we $XX GAAP

than of of of the was higher lower quarter. and Our XXXX meaningfully items the impact XX% tax deductible a QX XX% impact non-tax to earnings tax expenses the discrete the on rate due our rate in of base of recorded

Now, on liquidity to our position. cash and

QX refinancing in Our bond raised result in the NPV QX March. senior last annualized positive two a in used ending balance primarily of completed April in euro happened savings the cash outflow the $XXX transactions. $XX.X higher capital, the the of cash and billion. we to proceeds that in bond These balance for driven represented change and December from cash ending $XXX investment We which actions of from billion the in which Adjusting investments $XX interest that million April, in we In operating pandemic ending issued billion, use euro will will million the approximately about redeem billion all working expense we coupon million our to is offering year. our from the benefited notes cash a quarter. took offering redemption had the of $X down $XX.X rate in quarter, earlier $XX.X in in balance by our of result were senior notes

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

over considerable XX% room unable that better shape in of the and XXXX to April timing of second night at guidance continues is Now thoughts for this on time. April, travel, since recovery the nights room growth levels. March, better in provide basis, declines above a first domestic which strong best was flat and than XX% to US continued for saw the trends XXXX were uncertainty to April April declined we're in the and the versus Room the at room in the of regional nights night Europe have detailed for the April. room for were means growth April. Domestic was summer. a week March decline be March night in There we On declines last recovering month about about than softening of to down from quarter. which end result of March. Europe versus in night very about our room monthly

Asia April versus on vaccination increased, room restrictions cases new in travel. in and progress night declines slow, continued as has been governments March impose worsened outbreaks to

least region The were April world rest Asia declines recovered the were about QX. in as was the we QX the in of and in same April.

room to few declines difficult days with we're of predict trends night percentage XX%. night declines if you be QX While April than points room the of about continue, current over April. last To in recently, what could better were accuracy, give snapshot seven a seeing a

Western the are summer to the at the the I Across booking and XX% UK, time earlier, at period in expanded bookings same were significant within noted Western of April, Europe, at we now booking are window summer As same in they're Europe, cancelable. as of continues We that positive in we And time remind where Western see for the same This continue you gross were about majority XXXX. summer all now in bookings XXXX. for in the level the of trends into we Europe. QX. expansion

declines room income expect be percentage in said, to QX than better a points statements, decline the we Turning as few the April. I night could

slightly decline bookings we than same less gross the trends saw first by driven QX expect in room the nights, quarter. We

revenue bookings to than have QX timing discuss. expect to gross We decline due factors we more

be XXXX. As percentage QX points a percentage result, a of expect our will as in bookings, lower improve we of gross QX will QX, than revenue, few but from a

decline marketing revenue. a than more little gross expenses QX will less bookings, in expect but We than

a gross expenses merchant second an and other mix and booking basis on significantly in to processed basis. of sales quarter, on as dollar a QX as expect will QX the well revenue up bookings be volumes due higher increase higher a percentage the in to versus in be of We gross

they will which to personnel and offset QX basis. in increase dollar by expect QX but expenses to less, are revenue. be be the a We SBC an Compared benefit in same in accruals, about bonus is on expected were this recorded QX, expenses with proportional as are

QX in driven on such digital well We professional as fees expect basis, G&A and by a taxes. T&E costs higher as as a QX service expenses higher will recruiting higher than dollar and related personnel be

will year We increased some QX to dollar expect IT data operational related deferred some restructuring half investments charges our due enhancements, the record expenses systems from currently security, be higher in quarter. a will and in privacy, We QX second expect Booking.com than of on to $XX expenses estimate in full basis approximately and QX. be these to actions the about we million of charges including

an we revenue, the just loss we of especially a expect Given than we QX. QX, how loss in EBITDA develops during bookings potentially could difference recovery what demand be Depending in reported QX. quarter, recording small loss EBITDA less explained, this upon timing the albeit between the in and

during timing uncertain. overall to the year, for shape and travel will but that For full-year expect of continue improve XXXX, the improvement the remains environment we that

and business new mentioned struggling signs cases cases seeing of new in April Globally, the Asia. reported regions a his some the in of COVID increasing, countries million record other directly rapidly recovery are of X.X remarks, our a week is impacting across Glenn wave. with much As encouraging countries, other XX. number and with is we're while This recorded growing

in expect of have was de-leverage to in in see revenue recovery factor in there'll of XXXX if XXXX our This checked of in percentage than our a To majority that could a negative marketing drive the bookings we about bookings made made recovery, approximately also remind on impact booking. XX.X%. timing XXXX in bookings in in incur XXXX, meaningfully continued that gross during as in were reminder check be more the we XXXX at gross XXXX, marketing bookings, in XX.X% a as and the and XXXX. continue you, will expenses our as to of a time increased our there our As expenses XXXX. the revenue of that XXXX [indiscernible] model in we This percentage

We percentage expect this XX.X% below well the be recovery lower will will faster And this XXXX. in the the be. percentage occurs,

Before closing, I commentary been provide for longer-term in February want our about we of there's color. lot a our interest reiterate in what model to business. some also the more said previously and

We of continue especially we travel recovery years, to before be not will believe a quarters, see international it market, the full travel.

than Looking had forward offerings beyond we more continue COVID. and larger XXXX, to with a being business with to look earnings diverse prior more to we

We share. for also the growth market potential on higher remain and focused

EBITDA have rates, in below shifts those within likely the XXXX, continue the call. to expect to by most last margin on driven industry-leading that albeit mix I We levels business discussed

will revenue of flights the of Connected other the lower EBITDA, these include mix growth add than and payments a growth continued verticals, reminder, rates traditional margin much and and which accommodations. shifts Trip As at but

future As to business, a accommodation are about there shape our of we the few consider. factors think

the are by pre-COVID to on discussed as be personnel expect in expected personnel XXXX As as our expected rate the call, from in offset savings be taken restructuring same to XXXX XXXX. and last XXXX made the in investments personnel expenses run we in about actions investments

to the Trip. payments are investments and support some Connected of course, these Of

restructuring levels meaning business. involving look savings we grow that expect $XXX functions, were beyond million which the in means beyond related in as need expenses to from add mainly we volumes levels back which – actions we to as go back As to expect XXXX, XXXX, we'll volumes

cost had will to come cost we at back. XXXX before, of margins the work XXXX in effective put when mentioned accommodation our at growth EBITDA the this we'll But look on the same As XXXX to will our business same in and rates. we And personnel relative do level to added ways. base pressure volumes

as will additional last cost could from efficiencies a topic are like opportunities thought of margins, on the mix. variable are pleased scale, margins believe volumes share including market for pressure Of increased to course, beyond that factors you leave could is there we improve In to we that gain I'd and offsetting period that invest, direct share well accommodations, in build on create The gains. from with to fixed the efficiencies XXXX put travel this which during cost of conclusion, recovery we to in of discussed February the recovery We're leading and spread also parts vaccines to very March and April distribution emerge effective continued improvement line top and some watching carefully into COVID the see the the in realize world, of our line metrics. in of volatility We over we And, this With questions. ahead. remain you that, the your to we'll that continued crisis may lead confident to can Grace, open hand a this take for questions. from in to stronger position. we'll


Instructions]. [Operator

of line Your Bank of Justin comes the America. from from first question Post

Justin Post

help. Did or Asia, mix in people give can you are rapid up summer updates recovery? Europe when would US, Europe? right us us your about things thoughts think last couple in down? you so what pick just on we you as now happened and And are increase? you think remind bookings the I see between any Can came a a Europe And then, of seeing vaccinated cases can

David Goulden

the…? why David, don't take you

David Goulden

Justin, take let me that.

So, just course, our is, to our remind historic have we that Europe of you said region historically. basically largest mix, of

or roughly maybe being correct. XX% little be If bit kind you more, far a of off wouldn't think you

you've got And about country digits. that and left that we low-single historically, US rest pre-COVID, more of Asia, said, world means really combined. again single being XX% for than no with XX% was

the dynamic our what's recently. that's as most of has is Obviously, that pre-COVID with So, US mix. happened been Obviously, bit that a changed little the gone up recovered mix marketplace. the

reference historic the points. that's So,

traveling. a with In wave we terms things. of see, of after course, confident saw getting couple we people of more came the last saw did down, summer, first We,

were Of time. point not still that in course, vaccines at available

of traveling when things kind when were trend, What locally. traveling seen what so consistent a go good we in lift, happen. the cases We Israel. to that vaccination couple than that right places, of in We that US are a happening quite now. come people start we have the better restrictions very see is down, carefully and happening So, government and mentioned when rates far up, seen that in other we've several areas saw average. doing We see

in expectation to parts to our the are that particularly we'll those trends things in see So, improve. Europe world, start starting of is occur other as positive

versus we Europe mentioned, longer recovered no seeing improving March are we least region. things on the now April As is and

Justin Post

Maybe one follow-up.

color are share You us you US think for your more give right Maybe opportunities. can trending the bookings gains. averages little above on industry Glenn, kind of mentioned a that. Maybe do you now. And

Glenn Fogel

As I Priceline.com both US. QX in doing and very well. I mentioned the I'm results Booking.com said, with pleased the

we So, done don't have happy not we're about quarter that. yet. very are – the I with

So, numbers we go have against. to don't industrywide

just I'm we're and I'm see reported we going we'll producing that what did. everybody's to how say pleased with So,


line Your next of Kopelman Cowen. the Kevin question from comes from

Kevin Kopelman

I growth. have US QX improved the And a give any improved more or focus of of share for you much the quite Booking.Com us the industry on gains, how US way Can in a first of made but the a the in that? quarter was any in you're first example, a along couple bit, on overall of the you anything lines – the changing bookings QX. US of product sense marketing like new doing strategic in follow-ups the or versus also growth increasing strategic your specific quarter decisions US obviously,

Glenn Fogel

said priority. in calls the US. past, we in I – this wants then, actually gains. performance have about about And index he that and increasing if our the said talk numbers many, several in to US don't more under he I've say I'm generally disclose a specific in is this. not I sure Why will strategic wants anything and about the David, we strategy

we're from and many up So, making and that running by example but we can there's tackling back another the are with to such sure as doing we new things our ways with we Priceline.com both right to the Booking.com, And to people lot done try things making Booking.com, of everything in can doing. that. things suppliers, creative, And of want up talked them QX, of the people improve have help promo, selections course do making and the the which get at many, teams, how right we're sure US and platform blocking more it's our had customers. we have properties wasn't about working just just so we sure price, a for I competitive. basics of that coming travel that to payments of

in So, to that do the say And to it's continue to that David, was a able able for be if future. you be I we hope silver And, will It to no do bullet. to will this. us. thing numbers. things. different expect to so many one priority talk this remain to continue I There's the about want

David Goulden

a flavor, I just, and sure you make understand the Kevin, you said will was. give we little what emphasis where reiterate

have above strong, during very the obviously, the growth quarter, growth great, rates. in into sequentially improve amount. which as that So, we because, further April. strengthened March, growth the When the any US room in which our significantly fair things of was normal international That into night characterize US did I that was got positive US still and in night down business we room is year-on-year, a

substitution in So, the quarter, click recognizing stronger very at getting it for US very strong kind of And some of the each there quarter and was just the double is look strong plus. domestic, was the the positive March. growth there, you again rates and month in then just for stronger, April effect than if in in was entire down

Kevin Kopelman

promo travel the $XX just If did I April. could, you one on, in follow-up credit

see would as in from that much you marketing ongoing a or that be strategy use? shift contra-revenue? tactic an spend to this costs How You kind might shift of

Glenn Fogel

still to Well, end one. till they still It they activate US goes for it. put of on a to do to in an that They people. but opportunity the Still out. May book we April, just can do – actually had the it had book,

service back customers what we bring make going The being have, we show same example that of in huge ways with to the – I [indiscernible] program in future, point will driver, come sure a great very trying we those coming great in they them It past a you and an exactly two to a different thing out, things ago. that to but albeit it, not think not we future. but and in the noticed up the And tell to the that UK the that we similar, us, different that yesterday. have don't do days have going it's product is in haven't we to just us forward fact, So, may of started something because done Or the have promotion. to maybe what a we creative you pointed it's more not be. lot that's we're with one certainly be


of comes from question next Evercore. Our Mark the Mahaney from line

Mark Mahaney

back? it your a mix expect lodging somehow before? start guess, you in during you recover during it Did I've got expect alternative a I want kind a was alternative expect back because you it year and COVID thought talked think had of think, I because the about relatively to to questions. of And mix I of have it Would versus accommodations of percentage post crisis. first I similar accommodations, made COVID – to greater about crisis? being have of to higher, that the that revert March is would increasing. ago. Or the that would two you that just I some mix. it consumers off, of exposure as That where somewhat comments I quarter been be the that know would lot structurally to the Glenn, elevated you to

Glenn Fogel

I'll and go about and have why expect and your he because in we I question the answer it I'll – let Dave we future, first the the and it's about mix that more I'll Mark, we can about him are. talk [indiscernible] that let through what are the general, in where was Europe US, talked –

future, I some the to steady near a phenomenon. This aware time. going In that's COVID rate go accommodations, this the created to at a for now It's step maybe functional beach alternative near the change here's or a and where not of people safer the feel up that who terms global seeing people, a of interested the in may been thinking near never everyone's have have people home there. and – alternative mountains thought more been is years I accommodation. been situation. many, many want for We've they're about an –

gradual asked their that, the will in they some the you the people of is, think always people former to that But anybody the it may being the I homes us, a the I back just it having And not their question pandemic and would a habits set, tried needs. up? now, be type back consideration go increased tried alternative in back more change of property to fits what will of part be set. a think then guess really Now, said, future, first is is will have run. don't in will use we during accommodations will and hotels, I they people forever choose it in knows. mix having it, is their functional consideration some both. make increase and because their for going do there That long But people drop

accommodations the together greatest combined. hotels selection have We and of both non-hotel

some to for want you of So, properties? the because And in are explain well supply definitely of regions, we terms I we build that in feel need we sufficient we are have issue and do spoken up. mix to David, positioned in mix that. the past, about in in geographies again Though globally very the

David Goulden

way. maybe in a different me explain just let that Mark, slightly

at would Europe, you Europe, mix So, starting QX with last just alternative in of QX that with you at business if versus look also QX see compared up it lens, our to year a only this fair XXXX. accommodation and amount looked XXXX within you

I where region. said But our performing performing of much alternative region in course, was an have QX Europe a our you was mix. Europe, lowest we mix largest we have US And increase the within the mix highest of accommodation. that in So accommodation, we alternative larger see of also where remember,

did So, that's largest, fair did Europe, it's accommodation our alternative in not mix mix effect amount. means increase. where that, it for in example, a the total, But increase

regions, to So total, again, mix within different there really shifts we the out for XX% of alternative region. the was similar mix In effect But very of number in occurring. QX, biggest is accommodations XXXX. are all the FY gave

Mark Mahaney

If a better a ask follow-on I ROI you talked sustainable in can not. lot. to or question, one about And as marketing whether channels. that's think your guess just paid I Thanks

David Goulden

ROI. That's a are on question. many going There things good in

channels. we paid yes, slightly ROI improved did So, see on the

cancellation than have accounting ROI, say, go into bookings increase conversion an high mix. there and period your in together in we're We let also in still a rates, those. quarter. direct all of those the I'd across And factors that saw per two are us cost grow But less marketing rate, of, including click, volatility many

it's to but ROIs So, it's point factor as quarter. up, to any only they not just reasonable one [indiscernible]. were one to up why were slightly And

wanted given it to So, early of the volatility to too call we things but happening, out, point trend. a


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

Christopher Kuntarich

in share talk bit I on meaningful with It has been associated. guess, pickup little there Can Chris like a is frequency you you Lloyd. about, app. for sounds This booking just guys'

booking Thanks. little and non-app compares about to Just app us how bit kind that users. a frequency on of talk to

Glenn Fogel

the of anything terms know David, I if don't disclosed app? in you frequency on ever

David Goulden

got and haven't No. question have remind about we that the now, and answers of Chris, your let app. are over see thirds of to right. just on two we me are us tell bookings of But then completely talked kind you if maybe we are about majority what where those our mobile, question right

the that the where with we're critical focus on trend what a app are environment much behavior positive But seeing top the things increase pleased in more frequency. our haven't not are all recovering, returning. to we rates. through overall most growth channels. the we most the And we bookers booking are now, app app say the booking. mix most we a Our a right desktop current users. can towards I'd always ones line customers the frequent we're really But Those the a or other still in direct have Because us. frequency bookers and booking also, very the usage, relative gone and of web most mobile for app now. And into loyal are through It's direct direct repeat are right booking metrics

Christopher Kuntarich

related sure, you of I question. to your housekeeping want up repurchase again, little bit is guys was that buyback a of starting a Just that make activity to not more correct? saw

David Goulden

buyback related. was employee related was to that No, purchases. stock That not


from of comes Stanley. the Nowak Brian from question Morgan line next Your

Alaxandar Wang

This is question. Alax Wang Brian. Thanks taking on our for for

rollout three sort of appreciate with on flights, attach through two us, as we the do what and you you First, to or you countries. US and foresee to execute incremental XX flights the any I the as of rates that could progress share on just could in potentially year? investments the learnings Maybe key share early the update on sort particularly

Glenn Fogel

do about away actual give ever an that is I that important we reason say that rates. then talked the booker believe flights But approximately. obviously, to buy we I we the countries doing guess We will them getting higher don't that margin. and can now it don't getting is attach – upfront I important, The so XX in now, have a for and something working year been are in, some get initial now time Booking.com will that we we've a that is –

in though, are using spending a haven't of can effort as better? really We it we are this that getting it feedback money. at don't to you done We some want we way our are getting market we people to offering lot because we am that very pleased, terms right improve very with we people before limited the start how can of we coming get that it it, we've and want all hotels marketed make how We back. money waste are the I know. learnings,

very attractions the makes do much this people the It's in still because, that When as things connected also use very more very, which here us. travel, dining, is back our else. the game want not for flights, traveling, come to to a just and hope trip, long playing number how very, we and is But and the the emphasize think of but that's create all this want small run. anything So, they the they run than to ground are important long that we're early. And the that's is them good. you that is when know, it's always long something something I app transportation they to the this

lot thing, continue absolutely have important make to is that is first And great we flights. So, that make great, investments we're it into a service. of to to to a going it's people, sure critical that which

Alaxandar Wang

Just follow-up. one

with couple picture, I'm quarters But a you ex search, if sure online maybe tested campaign. bigger as result lean that. a brand had into think the the of not digital you of ago, more as at guys I do we video there's you channels of increasing to the sort a see any channels we're non-search pandemic? opportunities look anything performance of as can digital sort transformation share on seeing performance

Glenn Fogel

We recognize where going. that's the are eyeballs

So, name our make sure putting to need we appropriately we that are in front.

when people So, travel, they think of think us. of they

working are we fact that. cognizant of and that we are we So are on

will we with that. continue yes, to work So


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

Mario Lu

and merchant one payments. I bookings versus agency one on on have

you bookings specific you over to And guys So, target quicker kind a versus payments, in the one of reach of anything recovered to compared Is quicker looks there north out of agency. mentioned XX% how there say in the then recovery? that on and to like merchant XQ call level term? on guys to bookings. you guys time? Is there long plan are margins operating through revenue the much explain merchant, a the should flow to And it agency to a

Glenn Fogel

to on talk you question long about talk payments. I'll agency/merchant about don't the vision why Dave, and

David Goulden

QX quarter Because in mix in year, saw a was than recovery the a but of now crisis. March, in essentially almost worse, of year kind And an Booking.com. very mind, and year, both bear in comparing at things most talking course, not mode. got with we comparing slightly that in last the much QX, total merchants with a QX – quarter you're about in last you're non-crisis of quarter this still of is lower – Actually, crisis

at still an We it the the important. to Booking.com at attractive because obviously people happening. hotel very, And factors this flexibility the times just the very flexibility in total are the term, of we that flexible this pay the as model shift proposition have increase in actually a business looking business agency, year the mix merchant is in people when during of the was becomes looking So, will like has in merchants environment. the be short think higher one big slightly that at course, in more do expect important XXXX is than that bookings mix But we in XXXX. where

year. going this what's on So that's

Glenn Fogel

that. people's to be bundling, payments – traveling believe do we that can our just platform. better are agency – to get of for example much to view, long together, promotion couldn't their things And things. all merchandise that everyone a a business the our able payment didn't for to ways way. to value when merchandise we and to with that offerings really different have we on a do things sorts a many we if only well earlier straight customers partners, a different we'd do all ways supplier about payment supplier because to And, can do it's we both in can't service trial like as partners our In to create putting as course, we'll going play. possible be provide in you you And And gave do back of I believe there product we're ways to able

everybody I save is good we'll never it's actually customer way I who lots that fine, the a can we as all – XXX%. But hotel, that into So do we like get the people because for will still this them obviously, need of even get many I hotel to the the comes situation, know we to the we happens, There that that desk, whatever. would say, both supplier. will pay may for all being in thing, it's in if we'll money. who and payment people agency see in That said, be be it, like

it's the a So and great get opportunity time to for view going it's us. long to some it's But take there.

David Goulden

payment income from of service. additional the plays it statements, about Just to out what how kind providing revenue get we we in reiterate the before said

related have other but see to the the and program, variable to as There our is sitting element in which cost running sales offsetting match the biggest well sitting in related some revenue. that is in and a where sales biggest cost offset We payments to cost other, are obviously, lines expenses, you incremental to other. variable – the a

As is for the it an costs variable breakeven we improvement account, obviously mentioned, close enabler business, an when into business payments it's particularly from And XXXX, to factoring in what operated before. which just Glenn was very as articulated.

that, as to want So, out, we recognize lower we there to at to the core breakeven can continue which that margin albeit mix we the lead are opportunities than EBITDA accommodations. in incremental maintain business, payments from it the grow monetization we're recognizing and that growing expect, future, profile rates


from Your Douglas of Anmuth next comes Morgan. question J.P. the from line

Dae Lee

Doug. on Dae taking alternative Thanks My product. your on one first is is for for This the questions. accommodation

that growth growth, there's feel are the in just talked and product Or to room divergence you US. inventory You've about driving Is between and opportunities anything talked improve booking that the in you've think past? the other should how about forward? areas relationship just we works awareness the the that's about like it and [indiscernible] to needed sizable a two in improve? there on seems then, see And that Kind night of notable else going trajectory. the been where

Glenn Fogel

future. them don't competitors the get are you first to come have currently with say, out We've States, the in. go who alternative So, I've that that to in for the in important. we the very because we the terms And on popular and property And private take got on we you in people of our that individual second? how been this to more right And the the and, pandemic. multi-product continuing are get who are than, to of customer. properties the we States mentioned that's very, the the also process general, a work product in homes in Dave, the why in the the some homes, the take properties. talked It's past something the accommodations dealing I'll board, has in And using the about under-index single with just things managers of we're States. get

a So, doing right believe do competitive anybody is there's a be now. goal difference it to very, I as very achievable else. this as in how we're

in we And the the Europe accommodations a As thing is to good do time. area. taking A here exact business. shouldn't great no earlier in David mentioned about reason though alternative there's mix, be same business the it in able we very States, do

David Goulden

growth dynamic and fact of factors that the units are performance X% between what's of on the seeing On couple And car, we're on I that going cars. doing there's fairly the for good because room down we're booking volume. between doing from here. better increase booking growth, also, night going even – to in for One, flights – mentioned we are rates growth though X% in a actually

only has factor shift really TGV, has And So the with biggest even than quarter there of And total better down it we've saw that what's for ADRs is in last the are were been a cars flights and in for in what did ADRs. going seen accommodations. the bit X%. the But couple – bookings, both of we months. done a on

Now, of say would a things. I couple

ADRs are like-for-like year-on-year Now, due pressure But occupancy impact really benefits some the to are comparison. mix there the absolutely lower under rates. still that

benefit the particularly March. mix the first accelerate, as US shift in really towards US the mix started was to The

were you. March pickup a saw in fast last we when growth in really met rates You forecasting not we that

ADRs. the positive So, but Europe, in today for period restrictions, that are still also the holiday ADRs of happening growth, lot more right holiday for booking summer has And because people night there often for short-term booking is, room a was in are what's than also summer most Europe a stays. and now, generally higher

ADR the And go and reasons. start as again the two ADRs the this about well. like-for-like in are the that couple – of ADRs in So, we I effects and due really talked down are pressure. QX But will to picture. Again, car helping terms a those likely are expect do mix to to half to think second through air be of driven phenomena we ADRs the both under

our in quarter you more mid-teens like-for-like ADRs As comparison. down a of stay first exclude regional if were kind the That's of an mix. example,

be more earlier booking like-for-like – exposed we in will the summer first do and back kind So, is to and in the of the to stay half. bookings then, think together of mix Regional But second comparison comparable that may continue that more second the likely the half this summer benefit half. help. than did they the converge fade become more reported with those ADRs underlying will will ADRs in the of

on we're in So, QX. window going Europe see mix with and phenomena some going what with in booking and QX interesting driving to


Deepak last question your from And Wolfe comes Research. of from the Mathivanan line

Deepak Mathivanan

ones. couple a Just

on share the So, gain should the situation then to opportunity? think have the your marketing period? very on know variable about margin in that be products labor How that's before, we Is but it second back would are first, talked wanted there your there's comment channels? approach here Obviously, recovery is a US. this with investing the tight. something about that question go any to few during it you other you impactful initiatives to strategically? is that market And could Obviously, about

of do How affects well. how the operators hotel evolving talk if during all? called there you side some think out the have recovery. your is challenges broadly, the this And about as business, at Maybe supply

Glenn Fogel

I'll can to the continue future. look for start part, margins and let how go with we second I'll as the to things David back labor. And go

articles different all of industry. hospitality up about right we've shortages certainly, the So, popping in now read news areas

see And people restaurants industry, Right But now, my and world. Yes, of short some high the leisure place don't times in no for popular during season, in going where aren't saying believe areas leaders Dave, particularly, a you don't But see even back at little at business bit And some as certain can this to may I to the of the to. the people that's to to parts overall just property at all. of some And talk the hotels some to going impact is can't of able workers. risk margin. all. a a great get places stay about of very types significant that be in mind as or happening. a the shortage to for find in the the I business, be don't summer small I go there comes particularly some

David Goulden

where we incremental opportunity further business to and can initiatives like and are. the brands. gain marketeer margins, trade-off channels particularly opportunity at are like smart But we travel. a have nimble, to like we like a we into to think, can of and lean we of and pay to growth. or be drive a think we think pockets actually lean to be, with to We drive ours, would are number be Obviously, there's expect – need demand with and need between do promotions, short traffic. be need continue term. areas look where we there to can I to those in we look do at where growth those back can we always leaning things can opportunities Clearly, the growth things really merchandising, Also, that into in profitability the things that and good in there the also into, very areas we we and And a the to

pull believe believe to our obviously above want that would, we are the there business made everybody. us. to and are sure short so. impacts And bookings We of booking the generally, term, during for environment to mind, associated So, levers revenue, year, are very we that that make can opportunities things for presents than as are what's drive in the revenue growth dynamic And faster impact talked the upfront are multiple do in make a because, there the or we periods taking are when market time the can about comes recovery those this expenses with that we opportunities growing either we advantage happening margins. that we where Bear capturing later. of

the dynamics all that the into margin are those So things go growth around business. versus accommodation in


today. call Fogel, the remarks. back CEO, our you, the any to all we And I'll turn closing Thank Glenn for for questions everyone. have over that's that

Glenn Fogel

Thank you.

to safe. our continue continue So, everyone, better, our these be our company. you. night. on vision long-term please support shareholders. We we Thank customers, for Good partners, to our and you, dedicated and to appreciate as still difficult times, thank we in to closing, want Thank the our employees build your navigate want though and I through


and all joining. you. Thank gentlemen, Ladies this conference today's you Thank concludes for call.

You disconnect. may now all