Booking (BKNG)

Glenn Fogel Chief Executive Officer and President
David Goulden Executive Vice President and Chief Financial Officer
Kevin Kopelman Cowen and Company
Mario Lu Barclays Capital
Naved Khan Truist Securities
Deepak Mathivanan Wolfe Research
Justin Post Bank of America Merrill Lynch
Dae Lee J.P. Morgan Securities Inc.
Brian Nowak Morgan Stanley
Alaxandar Wang Morgan Stanley
Mark Mahaney Evercore ISI
Vince Ciepiel Cleveland Research Company
Jed Kelly Oppenheimer & Co.
Call transcript
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Welcome to Booking Holdings Second 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 by -- 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 this now, first to Holdings Booking speaker afternoon, I for would like introduce Mr. Fogel. Glenn

You conference. may begin your

Glenn Fogel

room call. Goulden. afternoon of our versus up QX. reported on earnings our provide we QX April mainly in XXXX. growth QX. room in QX growth his details was pre-pandemic down the ramp international very Europe, Thank by very of you and May sequentially encouraged the remarks. April welcome night I’m our QX night favorably versus results many to to David QX of second and conference joined CFO, accommodations continued the our by Compared US in room a I'm Booking meaningful the Europe David will better nights Good another for XX% in resulting XX% in the XX% previously in of trends a United in saw within quarter driven European a QX. very in for full in decline strong the rates acceleration Holdings quarter international versus the in nights decline relaxation XX%, quarter second than in following strong by month region. booking XXXX, in bookings with nights were bookings States quarter improvement last that and we The June, additional and historical compares business of this This call our room in restrictions primarily room was travel domestic and with slight and The region. pattern vaccination was highlighted on which significantly up the decline from growth second quarter

of to are, the booking Delta around world impact monitoring course, on trends rising restrictions, closely some travel relative a We month COVID as July in pullback newly the well variant modest June. our of counts have in of to led imposed as which the case the the

were trends QX improved our from booking July results. the full However,

the for markets the travel. initially platform to customers leisure are witnessed U.S in get European our have exact Delta and restrictions and eager on The see a the year clearly that in are the we this that volatility growth sharp to and While of rise of strong uncertainty travel variant travel, the shape and demand recovery we we that will the back travelers then booking confident return shows demonstrates lifted in remain able the trips to are globally. eventually recovery timing around when to us

We have we revenue booking strong few months. seen the in to than last expect in be levels driven by were closer XXXX QX much we improvements our to the QX, in

to business growth. our our throughout effect from get flywheel our customers the business accommodation done As drive our support benefits core continue partners supply our strengths and we’ve of on sided comes marketplace poor The pandemic, of where the alike. strength traveler from and will to long-term build we we the two its we

booking while relationships and I'm new all us the backed ease, to needs these most By the choice, pre-pandemic customers the their superior customer to easiest value strengthen the at of coming addressing experience, experience For and critical we our significantly prior of customers, accommodations deliver not customers. booking trips, support. a seeing service the and that report we And strive customers choice new is excellent value than best by provide and we prior are book back to create to our attracting with current of to different also mix pandemic. and customers. pleased Booking.com the offer

and One of program of breakfast, at free at we other our discounts room value thousands benefits properties through to Booking.com provides recently, like few. also and a the airport of name to members program. our Loyalty taxes just drive large is and our discounted hundreds Genius ways value on customer base Genius for platform, upgrades, more complimentary offers This

our innovating higher we repeat a mix non-Genius the and will historically of to have who continue compared adding Genius ways had to when bookings rate direct and to We customers higher provide value customers. a

U.S., downloaded increased an most one booking in firm. Our app OTA app we significantly as in deliver important Globally, Booking.com an the of quarter number downloaded app downloads to experience in is were we according was QX, major the customers. second way sequentially. easier the Booking.com QX, to a research our In OTA third-party the app

XXXX. in also we we the channels, in with lean into the we as where again ROIs. quarter, In prior the mix meaningfully attractive app booking than our second customers a of saw gains for see us user the is in to pandemic. these saw QX surpassed look COVID comparable We U.S directly encouraging higher It before peak even see opportunities marketing performance period to observed

history profitably. to of platform a bring the performance to continue our proven bookers managing long with marketing our effectively in plan channels to this approach We have We future.

ran into then digital as as deploy promotional and when as to we expertise marketing social we well we're media, and Back campaigns and in across like our Travel first Europe. campaign, other which addition, and focus In leveraging test the ROI the U.S U.K we like channels in our launched

brands. awareness We expand our channels to increase customer our to will continue and of we diversity of aim traffic to drive and platform acquisition as marketing the incremental our consumer

looking we retain from channels in the more trend efforts benefit a plan foreseeable facing seen to across steady this for of will will country with travel tailwind consumer online increase published year. a instead their the XX share showing greatest booking focused believe of trips to each In the XX Historically, the online their on has And accommodation survey major had secular pandemic. we offline. continue ahead, of our that and that industry industries, will McKinsey April, increase we remain base, digital results people While continue to of believe customers percentage the we grow our usage after customer future.

On helping of partners broader audience reach the our supply a on we focused are other customers. our side of marketplace, potential

connect reach amount significant supply from of by room partners with world, to the in demonstrated across our million around global booked Our our scale and XXXX. a platforms nights demand allows the us XXX

the pandemic. valuable a of strive market travelers XX channel our payment access global localized add for being to support in accommodations accommodation the the teams, and trends on In of an innovations to in languages, a other ways partner in hotel off service quarter demand on our in we addition methods transactions. enabled platform. the second lowest coming the COVID-XX saw alternative independent value In data, over hotel, of of customer onset alternative quarter, a partners, be partners to we number number or first new for by to to large types to we platform Booking.com since payment service the partner support accommodation and traveler the liability shift of large properties properties for response sequential all in intelligence product increase With chain, and our our and or fraud providing

were of and gains for As XX alternative had professional reported June Booking.com, larger new our XX, share accommodations accommodation X.X alternative properties. Within corner, add on targeted we saw U.S., in encouraging continue some listings the which managers. also the over with in million Booking.com million properties of of to

alternative to are these is grow early accommodations recognize and work ahead market. U.S much While product we the there positive improve in our developments,

accommodations payment believe all increasing second through enhance quarter. at the with continued will strength we payment further Europe the its for the supply Booking.com. year unit both strategic by business building Booking.com's which increasing in the initiatives gross of about strong Booking.com's to were key Around and of payments of in was the and our payments Trip integrated the want our new partners adoption including XX% processed our bookings XXXX. platform, chains of progress which in to recently fintech XX% have in the is support total represented continued QX share full efforts alternative made and move the European a We U.S., business. of Connected into our major of accommodation an platform hotel organization at up announced priorities core our quarter platform some adding our in from vision, of payment business On its and I accommodations of growth. expanding Our Booking.com, we

will efficiently for unit focused be more fintech core business both our and on bookings supply partners. and customers to the better, enabling faster First, run

on early of on addition, our countries. bookers. we priority flight opportunities these the XXXX, and the elements an earnings enabling through their long call setting accommodation us flight we cross-sell travelers focused in believe capitalize services air platform to year opportunity will major we place bookers which tickets development and and have call, on overall a recognize product this alive vision, our fintech top Connected a launched did flows allow I scale transaction In continued mentioned run. last to -- offering engage one will Trip of trip meaningfully earnings the last robust flows. to our unit be that benefit exceed up book flight us in will this Trip monetize our now our to The in markets, billion on the been the travel we these ability and In front to we bookings Booking.com, six of flight has booked to that journey, give On with their our transaction almost in this on Connected better in better Booking.com. XX up other of to our value, new expectations. Since $XXX have to us In separate on have

represented of our in However, small up air by XXX% were QX Priceline. these versus total tickets, QX portion reported primarily still is a XXXX, driven this which

Booking.com. for data getting positive are we seeing days entirely Booking's early we remains product, it flight for indicating While new customers are

bookings to an combination customers data attach early incremental these and In a our from a to new encouraging help then of these addition, rate new we cross-sell seeing points the These customers. creates to flight new platform, offering demonstrate accommodation are bring that an funnel customers.

demand We seeing flight see And world. the continue are globally. I'm build at I encouraged we with Booking.com. seeing will eventually the recovery on of that travel parts by the confident early to In of strong am we to signs recovery conclusion, some are success expect in in a we

to our We work with position America strategic and season And our this support to priorities. strong travel our in teams continue execute North most and hard important Europe. against our strengthen year summer the working company's are

are we over of before, and growing to faster said building back thinking after about David for business a I demand. I run. focused Goulden. recovery our generate earnings beyond our levels and As will are And the we to David? long XXXX more now full turn just business call larger on to CFO, the getting the

David Goulden

Thank you, results Information and rates found To regarding in so periods for on afternoon. in relative our comparison to release. third seen GAAP pandemic quarter all the reconciliation color operating period results provide to comparable the unless can I'll indicated. review good Glenn, quarter. results will far trends be and in earnings in be to XXXX second avoid impacted XXXX, we've our non-GAAP otherwise of growth some

the last improvement U.S On our in in Europe. in improvements to quarter. our April, for QX second strong the earnings call, on discussed driven in the Now by which we continued trends results into and results

in performing the notable major June. XXXX well growth showed versus to benefited QX as On the XX% trends our Europe saw May. resulted QX we expectations as was QX and room as improvement in XXXX declining growth April QX, The recovery significantly from and room continue versus the improvements better well decline ahead world. the in which and was June, room get in clearly reported achieved loosening level slight saw accelerate strongest quarter as QX results better in night overall full our again night restrictions. earnings driven travel a of Europe in rest in the growth trends XX% for nights in XX% The improvement decline room by in in rates, versus a Booking we versus of the in very QX, strong the the Europe XXXX, in actually vaccination U.S country quarter. U.S which rate our call, greatest have and and nights May in of in was

offset in in partially we unique travel XX% in Asia June XXXX. level were with to down In than declines due improvements COVID reached and at nights QX the in room greater QX, XX% active June, outbreaks related of with the regions month other of night in accounts restrictions. Booking.com our customer the increase about our monthly room saw

little we of bookings, are which apps, in our XXXX. mentioned, particularly of new of to the of as the nights. Booking.com than in room is pleased through Glenn see our lower total customers mix as a solid rebound over only mix customer well Mobile As a base customers, XX% new represented healthy QX our

mobile our Our app represent to continues of percentage increased an bookings.

versus international our resulting to sequential of grew nights to remained while Domestic XX% a as down increased teens nights improvement a QX increasing relative bookings the channel QX in in room of in direct in in about about XXXX. international in mix mid and XX% room QX. QX, we saw nights nights our year-on-year room international significantly XXXX, Our room the percentage from

made of higher rates the improved window significant than continue the quarter. were bookings second remained in than as in The QX line from booking bookings. with with Booking.com QX Our a quarter The QX in it our see remain percentage cancellation XXXX. levels XXXX in policies XXXX was higher of flexible of and shorter we near-term mix to cancellation QX XXXX

improvements to the night was COVID. flat QX to time did of versus three XXXX The prior QX quarters. in room The we've primarily due the window points booking three in XX%, nights reached QX accommodation quarter. alternative improvement for from higher In night is sequential accommodation the first it was our June, the Europe contract room XXXX, growth mix in overall room Booking.com of less which levels growth than QX. since was in the than start this is June on in segment the However, alternative

of have toXXXX. of of also same average constant As currency we our this continued our highest is we changes in represents alternative bookings rates room noted, less the versus for rates alternative last quarter, decline in QX, a remained XXXX about points XX% increase on an few where of to XX% in than accommodation mix the day Europe, as reported from a Europe XXXX in a XXXX which in is Gross accommodations. QX, nights, to Within to mix declined due performance a and FX accommodations due in and business. increase basis, strong our flights and

which constant business North by increased about which a from lower is high of X% mix in ADR and mix decrease the ADR of an accommodation ADR in currency benefited business a America, of Asia, is Our region region.

of growth ADRs. tickets which the XXXX, of second up levels effects, driven mix by oriented were a America leisure in higher high demand in by Airline X%, Priceline bookings of in QX bookings by and destinations. regional was driven higher in ADR driven North versus summer of approximately by neither North by of beach Excluding And America constant have increases XXX% rate Europe Agoda, Booking.com have up were and currency Europe. and driven which increase XXXX. booked in products The quarter flight in were strong mainly for flight mix

flights than decreased XXXX, to key air Consolidated business, multiproduct billion is component differences. than expected see check-in declined $X.X quarter to for which encouraged for the for quarters a strategy. point are in were which We future Connected the was which due in the tickets of XX% quarter our XX%, gross another a quarter Trip breaking by bookings better be meaningfully versus at second booked record and in revenue our are bookings to driven Revenue in revenue timing rates largely quarter that Take made expectations. recognized. will more the is about QX these

rates take our call. of impact full discussed you last for recall, timing we and during QX As year the QX, will on the in

less half rates than although on performance impacted to timing full notably impact $XX half year. to the bookings the timing, year line first the second continue expect these impact the will take Removing QX year the be expectations. We better-than-expected of take stable of were factors the of second The in resulted came which than million in versus top accommodation our in of adjusted our XXXX. in EBITDA QX quarter, better rates,

ROIs were in other due a debt QX than first in related a expense, the variable and Marketing than XXXX. Sales expenses With dollar Marketing in dollar last basis, than in which to higher higher year, a has gross second Sales to $XXX increase wave QX they the million the expenses and percentage to declined our the related to our exception on of expenses primarily in of the channels expenses. repay due quarter QX of since mix. were than line EBITDA in a by the QX more better the to expectations aid is XX% decreased positive on is and expenses highly direct they basis. due expense and in higher significantly in were Personnel QX with paid expense were revenue quarter. COVID. the this our bookings customer first decision versus QX service lower-than-expected government other

line expenses net for and QX quarter, a this on recorded in QX, million. in we're On it a expectations and the the in loss We GAAP GAAP QX. million Excluding quarter. repayments, in higher we year an with basis, tax expectations. expense of our QX $XX in GAAP the million basis, expectations On basis, expectations. have $XXX tax line a our expense and have with in personnel due relative would of We a recorded a includes income were non-GAAP earnings than in pre-tax QX of to expenses both $XXX we loss a on a non-GAAP to IT higher G&A in which been dollar full for $XXX QX. loss were recorded of loss in million our operating

non-GAAP For GAAP and the rate full we than on be higher tax expect year, XXXX. to in slightly

onto our and position. liquidity cash Now

ending of Our billion. our versus billion was investment balance down ending balance $XX.X and QX of cash QX $XX.X

notes of coupon $X However, and ending euro the the offering of benefited raised which two our in from higher occurring that of of subsequent ending April happened our have notes balance adjusted bond for cash two QX in April. QX in March in completed cash we our the would Adjusting balance redemption in the redemption the timing balance QX resulted billion senior the $XX.X an billion.

$X.X balance long-term Our by working in bookings merchant deferred source to ending quarter to our this capital quarter change was operating investments. on accounts higher due primarily in billion in $X.X in a liabilities, operating capital. balance than unrealized of billion in of other and of of entirely billion receivable. cash working and gain the in our driven Change flow cash flow cash partially due billion was the the adjusted QX the increase by offset $X.X represented $X.X increase current QX almost

QX, We our billion in continued than cash about Of to investments our and debt, quarter billion $XX.X was billion and $XX.X pre-pandemic strategic with liquidity pandemic. We long-term about $X.X investments, created which the cash the is a billion of the levels. was will and given short-term at higher of $XX.X related the by investments. maintaining the continue uncertainty ended on billion strong focus end $X.X position COVID to

note QX. a have in X We maturing billion convertible

not on in yet, risk reversal things trends COVID. creation and three trends will seeing the to While of an We're pause of and and important to is we are due we're each will major Europe. how beyond regions return on we a watch given so component in significant developing current future, of of the remain current be we in our shareholders Asia our with the there to believe our wait reinitiate strategy value close in capital

third our the thoughts for quarter. Now on to

the stricter and for variant with the well vaccination Delta With have the by rising around tourists. many as governments driven travel leisure -- requirements responded recent restrictions countries, and new some case by counts in testing some as world Delta

However, important increase increases government's particularly in be the there lagging are rates, rising how an in closely vaccination cases. the COVID among case which responses recent in are counts rates We're indications are high restrictions with counts, in where vaccination which factor that the U.K rate to the in despite forward relaxing could their hospitalization move countries recent highest governments Europe. plan in the the high, watching is travel case the country, with and

We of after in July, the counts other the recent by new XX. encouraged July the to July by outbreaks. U.K saw trends compared the -- with on booking restrictions hospitalizations low in in up lifted an and continued decline are level U.K leading improved case in We on X travel

room XXXX, nights pullback about just Europe. modest in decline XX% July softening June, was Our declined from family booking in the a which versus XX% trends

on in the in bookings night QX Europe, a end Italy. summer Outside although in saw amount Germany, several the growth strong across did countries the at high than of very in within including for U.S and XXXX. we reduction July, below in key Europe, we pullback our time France July, modestly July Looking to room the Europe this have books in continued of the gross a countries of these levels. But had we recent of to room period nights despite point same remaining

While and the it of in rest July world room declined for as about June. same night Asia in were

and continues be The down to be the rates XXXX July nights remaining from to Asia and were region with positive down growth for in international domestic June domestic least similar significantly from room and continues significantly room levels. XXXX. versus recovered July remaining nights international to changing

by driven reduction COVID, exactly around July. how it's September August the variant, Given difficult primarily saw with predict we a and in in the nights recent room XX% compare to Delta additional uncertainty will

to statement. income Turning the

room and bookings gross QX than expect several my decline reported less areas flight We driven improvements by points in to nights, bookings. expected

we improvement significantly the than in more also months. is in just summer strong gross last mentioned improve time I North bookings few the at that have same for QX will the revenue the America. expect XXXX Europe. QX for from for this in reflecting bookings The We decline true

QX a expected the will in XXXX. our quarter gross will third QX due from with concentration to percentage We QX revenue about expect high in of of increase the checkings as be and bookings meaningfully line

relationship the and gross and revenue reminder, in a by As will August between bookings QX bookings in how impacted exact September. our be trend

expenses and bookings, marketing decline invest points we demand. QX expect increasing expect of demand gross during in the We in will of ahead awareness the capturing several travel than continued to less as peak recovery travel season and global

and well on versus up expect process on sales We as higher -- a merchant expenses quarter an to of booking as basis as the dollar well in bookings a third mix in increase the mix in other be QX basis. gross significantly to as QX volumes gross due

a However, a other percentage will revenue of expect we sales than in as in and be QX bit lower future.

with our expect a in about line to QX expense aggregate basis. more in categories on fixed $X be in QX We

conclusion, good and recovery we're and travel looking of expect We reflects with the we teams. which In to also be a EBITDA from travel year our recurring pleased summer by demand, travel remain benefited a fundamentals full North eventual the Europe. a have business, will in demand our season America QX, strong the QX QX and since highest globally, We XXXX. in our in forward of results strong this confidence execution better-than-expected

business and you to take generates building and our business please. for your now We'll larger of in the We full could questions. if we're pandemic. the ensure growing faster open well-positioned earnings a will for to lines more to than invest the questions, to for Maria, recovery prior respond travel, continue


question Kopelman And from [Operator will first of Cowen. Kevin from line the Okay. come your Instructions]

Your is open. line

Kevin Kopelman

drivers lot. in growth a in Could been Great. share past over you're key or U.S few look gains the competitive alternative accommodation? would of more seeing your by Thanks. like And that more driven say months by about hotel more has you U.S. traditional Thanks talk you the

Glenn Fogel

I put that should Kevin, don't anything let said. little So thinks of he this in David didn't a I add take why that and have I

team. so that the a to just extra no the improving doing blocking in are pleased we is getting we're we're time. of So lot demand key is at the by U.S inventory, for things testing, marketing, a of and price no the right the it always in strong doing bullet. is all results oh, the of It's work. been result our very bunch of making with and of right blocking sure right to presenting that the unlock magic the work lot the customer a the of and lot long very a that the hard tackling offer and seeing right the tackling. to terms right good There's that we've There's this we've just lot conversion, sense And U.S. AB done, things silver in a A of

of offer given customers inventory the service a we're gaining answer sides that sure to managers make with some the pleased provide David of business their it's with faced demand our our to biggest how little working the business accommodation that's the that? everything well. going between our alternative we to all chains to small suppliers to international anything both there. We're you Now in to some and providing share and improve paid both bit they more better getting in want from we're marketplace, to overall, them talked of of a specific that need alternative successful. accommodations, with everything with about professional terms do make But a

David Goulden

global of as than our our last it to said the in your hotels response Just the you mix think business I average. Glenn, Kevin, question, well, we in to alternatives U.S said, Oh, part is heavily more

of in the therefore the don't growth have We rate growth seeing growth without by seeing levels hotel to business. both. So has driven that be we're strong

Kevin Kopelman

and understood. Yes, David. Thanks, thanks, Glenn


from line next Lu Mario from will the question Your Barclays. of come

line is Your open.

Mario Lu

question. Great, for taking thanks the

accommodation, the believe manage properties on you're so globally. alternative you on share gaining I to As mentioned

percentage And at what can that you your gain? mostly really, properties specific the are Whether versus provide on color if or million actually onto X.X end? you actions just based, listings Thanks. individual? made by some managed drove So what could then guys geo you this share share it was

Glenn Fogel

on little got that. I a backwards

property disclose owners the repeat breakdown one everything many more that different to single of of all of do areas is property categories we So past and how are I'll accommodations, we it don't many and in the are these professionally the have managed, alternative to that in the single add said need I how our between. owners.

people know managers, think that I doing when bit we're get or is in you knows you people to fill of wonderful that that. focus inventory at your that lot an about this bed I margin up said an how hard the working just on to I and the is on. night that adding we business prepared their we to remarks a fill have did area revenue, a It's get When In questions we thing owners is zero everybody this care, So at little it empty an property other with just are who bed, spoke need incredible they regards and want now about the filled. property. to that want and a

that leave sure bring I we're mentioned fill further we're in disclose into sure there anything help not things any that. different, anything to to that that that to I'll before them David, that all you to making sure there's make demand. want we to there can So they I'm know if is

David Goulden

comment in really to a Mario, gaining that's larger of just that I that how on points made mix is no No, additional the manager related Glenn the professional What X.X with share the U.S. million. data gains doing clarify, we're about

target, if I'm not Now U.S., remember, in the lot get point worldwide. the again, really available like specific that's with managers. not managers the properties the of more lot just of that saying Australia's high additional a he I'm quality managers you are single saying own property through the that U.S there's supply a where those of pressure available owner properties via case

we're in we the there relative to content U.S. So making were the was what doing

Mario Lu

Thank helpful. you. That's


Securities. your from will question And from Naved next Khan come Truist

open. is Your line

Naved Khan

Yes. Thanks A lot. a questions. couple of

-- higher in I the talk what does David, you efficiency some math are it then -- reports quarters. -- might drivers did maybe I versus And I bookings and maybe deals just number. site of It the marketing being interest for rough hotels I terms what higher on Glenn. talk participation? think just tested you the one seeing flash kind maybe last you And was marketing? was this of about some of be in about from of efficiency Can look heard off later in XXXX, Maybe maybe think can the you year? say of

Glenn Fogel

So, that to David, one? do you first want take

David Goulden

a let was little marketing, talk going bit on. Yes, what me about

our gross you which the things as was is I books timing the to say basically question. Because all in look it. decline got think QX expense there. you versus our at in understood I at bookings, of different But what if revenue, to look way the marketing a see it you’ve

quarter. So in improved look at That ratio the our bookings. some potential second of gross

increase also in So our marketing our saw declined a we as Two gross well. definitely, than that years nice awards a of many channels ago, see our expenses do more across bookings mixed factors, we paid higher but we did. direct ROIs couple store

So analysis, we're direct the for the new attract paying have mix customers. to more marketing those then you less

unique out still, yet that’s that’s nothing environment isn't marketing and clearly. stable to So fall the fully I'd I would say, particularly say,

We industry. stage in are of recovery a the still through going

with are directly to that comparable But where not XXXX. the we ROI factors we So were pleased were see with improved. all

is the the season. there out mind brand spend we peak only where to the QX our QX. will in said to spend likely relative increasing in demand, the core, we -- recap be is, happen the in We historically implies are that spend opposite QX got month in a spend also the most to asked customers if want we is QX. a about But I QX bear Obviously, QX. that Now into marketing what it we're the

So will one the contributors of what to some in QX. relative spend essentially gross be that's deleveraging marketing bookings to

the we'll marketing happen we quarter. create the that's line. to third what is us first So quarter did on the there because how helping But some quarters, two see we ROI, that in the leverage see develops, expect in an

Glenn Fogel

there question flash official response deals, your there no article something about read did, from I there Booking. that was if about was I regarding you the And same in think

ways. partners sides we're me different that is the merchandiser putting working with let both to supply into lot about but of demand more I all marketplace, our get cooperatively incremental a value me say of specifically going. better providing to So that we to reemphasize let effort Being say through where the nothing have are a this, and

Naved Khan

Understood. both. Thank you,


come next Research. your Wolfe from will question from Mathivanan And Deepak

open. Your line is

Deepak Mathivanan

question, about one for Thanks, diversified more worked taking Thanks has back yet, objectives of market guys. performance second those other be leverage kind share provide little in think think to color recovering, your a of markets is that there sort Are a know Great. the of space. of great. kind is can for how wanted still How but strategy. that your we Historically, during not you time? with any early share market of to it's should data the question. marketing then to trending about of And ask how with specific lot approach I and the of the that, comes channels. you best on where that'd into your been there's the I gravel but bit some the channels? points look for your this related about some you. marketing the should that travel experimentation we Thank kind a

Glenn Fogel

correctly, efforts, we doing marketing are So built a on diversifying channels. performance this with marketing our you great absolutely regarding job great, company

to I of we are prepared that. any marketing. to that lots new at we ways longer we've we out are putting run, of are all is But do So channels, cost making things in that. course, marketing been long you're effective. brand do the it to takes very the of actually always is we're every a continue produce going looking days And U.S., The key knowledge sure ROI remarks we seen, do we going be make because its It's we the experiment we the with get. mentioned produce what brought lot And of you type like and to don't But it you've demand. that have to to going out, was that we to program thing in pocket continue brand to know getting about results. in for of that for different want in it's going of reaching to marketing. social my brand hope, how Priceline.com some in very, I people sure know channels, successful that early Booking.com, the

got run, And So we in really believe believe going in ways the will -- the want. to that. we run, long on And bring to that, keep that but it's many that different recognize in doing have to I that I we long results we're produce going the we're marketing.

that One things that is spending do any David marketing to not the a shares if campaign want down we're the But shares, though, going way let to the it. pleased example, the we he that's product keen competitors. wants And I'm of seen a way wanted. are country you go I the the is very right accommodations things results by on U.S., start the before making key the sure of are. haven't I achieving. now. you brand product to say, you am doing our In working with what country have regards that that sure give to to in with really results huge how some of area amount really we're perhaps market of specificity. our pleased terms alternative we're got from I one we for that will we've and And in make

David Goulden

well. Glenn, I think you said

have are the and wait when settles. we'll see dust We pleased, to

a things measure I quarters we're we're of things only going. over two or than two how a quarters think better into shares, with pleased quarter with the are the year. course year market But

and can what rates we the we got actually end at the count out when concrete data of some happening market how see we'll will more -- on growth that we talk that to more But Our we there. the relative year count about developed. if

Deepak Mathivanan

you Okay, so much. thank


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

Your line is open.

Justin Post

questions, Great. from what the first, How traveler third to And Glenn, can than that you XX% about you you bookings June thoughts -- does A Any on I XXXX. better that? 'XX? of guess being think I revisit quarter? David, July back feel we items do you of make higher thoughts couple maybe, full recover, be travel revenues about summer that have means thoughts 'XX? really helpful? was for in share Any And either said comment And on maybe a level lot. would could the then market Could be higher? on, confidence than when you margins those your Thanks your new high be a any recovery? of your

Glenn Fogel

[indiscernible]. All right

David Goulden

of sure Yes, well, make we're I'll that what start to kind with just saying.

the remaining XXXX, XXXX. the or recalibrate same more to at for said, we what for So gross enjoyed same in restate then I the bookings have time, we summer, summer, time,

time that for Now have North same America. we and Europe

for I point there refundable I that potentially So same out there a that at have as cancelable that well. bookings summer months the cancellation we the also for then did same, revenue stays assuming that high those result month. rate we in would will had -- have in remaining bookings out or we markets XXXX out time the more percentage -- in that did the notice summer of

they in So of than of done same time. cancelled were bookings more there's the some that risks obviously those period

that it in in basically two now the potential markets summer means XXXX. it those for was revenue base So is higher than

in Europe where rest the were bookings offset sorry on be to substantially a which those happening Now, at happening end the in have same We XXXX. of -- that don't obviously, are is the in the what's below potential world. situation, revenue books, will in what's of at revenue July markets time and the Asia in they or

Glenn Fogel

to a dart, happen. when say I nobody darts. would full is I going think is able to everybody this throw And really Just but it's that knows recovery throwing

impact, come how say out that this we I will continue think out, will end that these much everybody variants variations there. the I are and confident, that thing the new come are happening, point The it we've is all of to we some Given is very at strongly. seen

the come industry the where in to want past business, bit industry. be we we've we in talked bit leader committee want more have a have a in about But a to and a we bigger this this, we to the we've the about out Now, of want -- a also faster. making EBITDA, talked growing about leader how margins,

grow nowhere that. we're our the when wonderful is increase believe, nowadays near I business, example. it. way lower That's are back say fit looking and with us all up different are we our over of and that that doing that’s we're with for and or there's terms shareholders, more a coming we margin, thing can what things EBITDA air contain margins I know, the doubts accommodation at examples. margin, actually so to mean, But in for key but on tickets, wonderful. our we end of a obviously, at they for The can XXX% go of more business, air it's in In lot those I that margin, XXXX EBITDA recognize

Justin Post

Great, thank you.


your from Doug And next question from Anmuth Morgan. will come J.P.

Your line is open.

Dae Lee

about Hi, fintech. this that the that's for talked monetize One led is to flow for remark Dae transaction Thanks the taking this questions. Lee prepared In better you for creation drivers Doug. the and Glenn. your one on of the of

and this user for ROI. end? question, well follow-up the on Is what’s more marketing as something on second one a will curious affect seeing opportunity David, that just the or So experience then you're there? back And that the sales focused

had last quarter. and ROIs quarter out guys higher called again You this

performance So something to is that curious doing a on this just you're dynamic of outcome the is if advertising or this channels? result was the more on differently, the I due competitive

Glenn Fogel

that money a So run. unit, of $XXX there the flow opportunities for make in in the fintech save it the and We XXXX in money there are consumers the through worth terms long sides. And good that transaction we with flowing know there. for billion both can too on us a we many ways are on can suppliers of

sure as are fraudulent. many, in of partners can pay able things of means that many coming it electronic it's their our conveniences we're that And wants sure that tool. of to can an type if player things we want somebody could any different for to is who us providing that many, our other like that transaction suppliers as which simple with we easily But customers a types it. partners our fintech a making of it not regulations So do. promoting to It to alternative making we sorts FX unit can't things it's can things example, better do. do scale, to terms better from method with as something job can things. E-wallet, It's --- that provide enables with value that or lots Even things like on that of different setting making ourselves, be something all provide wallet, at our own. things different supplier can that. providing up, also customer, And we're payment there do up come a It's all not do sure in that our

what things Connected that one want it's but on the right our other Connecting which to of you we So if one that pays make with to amount, Trip basics that their types Trip create have point I price is a now. own not can't can need see course others only all have really do the we to provide work, single a of that that person you

David Goulden

changed. has playbook quarter channels performance and Yes, our then the our on marketing have second really changed. not and ROIs, strategy not And

our of the marketplaces. lower things of right go traffic cancellation, are at quality the high coming price. And back to bidding on occurred a seek probability quality of those us that daily strategy those high those a high traffic, in kind damage recalculate We high us, all to converting continue means And each to probability was which plus that basis. into

there'll ROI expect be the volatility recovery. throughout we So

are time course, leading Of get leading to the there developer when also is more. versus we what and demand look at

'XX. customers our this was -- certainly are the and get in platform looking of nature new an customers healthy on as a opportunity and similar mix We very as customers to new quite we it in business win at to onto feature mentioned

pleased We the with the winning way new going. we're that back So customers. we're way how We we're customers. bringing existing like like things are

the expect existing to directly of customers are back much We playbook. than you as generally part more which see the pleased the customers, new come

volatility we cost in in compared still those many those click each rates, a and to factors relatively calculations, So into of XXXX. per I'd we're high go ROI including cancellation were where in period of say conversion rates,

Dae Lee

Thank you it. Got both.


Nowak And Brian come Morgan your will from question Stanley. next from

line open. is Your

Alaxandar Wang

is for in this XX% monthly of for I Brian. on particularly Alex taking on you of One, Booking.com about which Hi, out backed mentioned calling your Two is that Wong Asia. encouraging, Thanks question. some pre-pandemic, the the think is traffic you're questions. headwinds,

any momentum separately? sounds going Just sort Second new a existing in cohort we're versus grow there's air, differences strategies there. those around question to out like of able like on of any forward bases curious behavior lot that if to and segment

for that Just of remaining hurdles product. and to views any new plans your air see consumer initiative, curious some execution you the awareness grow on for sort on the of

Glenn Fogel

about the So we'll first base. to see our breakup of David or air say and wants not I'll take customer what say

be any to yet. recently to lot Priceline than marketing better air, mentioned But haven't been many company has we I'm start side effort the it it before And have bit to only. prove that lot really we on little there's Booking.com even forever, of it of obviously, so I touched got done only since to marketing. XX little that's the air yet a very And make them talk to that's the got the done. not see we be U.S a countries going can And very, of done is. nice, Booking.com, bit So, and all. part going started, real things but ways list really doing We air large while that a we haven't need in I that this to countries but a that has

you you the sure want make got it. product So the way

margin that encouraging though be seeing to accommodations that obviously they a we're with to not even actually So things need pleased something of build the attachment sell to and product. so Connected of rate now, this to is that out we're that really reason doing with still done some that and want to something get just those improve It's see I well a the ticket flight it's Trip. do we is it again, that right is those higher lot

early And stage. see Kevin, early stage, listen, seeing good to think say, you results. urge to we're I nice at very a I it's very So

to lot And a the I the see other of do that we marketing opportunity So any it feel I want future. But product talk about if you don’t until on know it to have where we won't want be I David, out in be. of the here bringing we sort one.

David Goulden

there's say. a to lot more Yes,

we saw on I in to think how customers site a some give help, have what booking active 'XX. will points slightly mix of QX we actively healthy to the wanted actually people customers recovered. the new are you our understand below data only we by mix -- And

I those signs. are good think

So them customers. make we took are all. the program. of very our Obviously, have often, But some wise I into why customers some love part want differently. a with and we customers much to don't the we treat who segmentation I book book there will sure that's get we can And say them Genius reason

Genius I move I up the driving Booking.com us get way the you on the and nice of a you ladder often more or course, with us Of book Genius more from program, is think work for which loyalty. benefits

grounds points So we a get I people just don't the other thought would the understand on what's business. going data within the want than before, helpful, into be out details. which stating we've further given to

Alaxandar Wang

Got it. Thank you.


question And from Mark Evercore. from your will Mahaney next come

line Your is open.

Mark Mahaney

the it's markets what too you air greater the that sticking so product? I'll this guess, frequency learnings Is tool? has and a to talk to cross-sell -- is notice you in were just people with acquisition and brought of guess far, I seen on I early. follow-up the thanks. spend, about Well, increased this a XX engagement date is customer have This keep You new those with maybe all the with overall and booking. purchase. Hey, -- this

respond if base? So impact that it's if you'll on have guess I'll a do you're think and Booking any I read you -- customer what if a Thanks. had to then way, permanent permanent going your ask when impact decent com to

Glenn Fogel

Hi, Mark.

that more coming bit said will been new [indiscernible] a little cross-sell In I'm good a to that. I sign in because seeing in happen little this right we've that's then a for are haven't like now. them that a anyway, attractive sense, sense that on seeing you to very but what more yet. was this and happening. we're is customers two really pleased seeing will really early, a a I the to happen that too we marking going -- that Priceline that add we're been out been So where as I direction like going site, I add get just the had because decades

that the others, proving hotels, I I This attachment the Connected them a are want believe we're it good of is very too. and something some that happen. confidence are of So this showing we would out versus who funnel is U.S more us start what just bit our long-term we customers, little pleased. tickets, buying new a versus customers to I air have had that not here's but from This the to with you, lot everyone people are bringing vision many would just coming are buying new Trip. on this data what here's But coming before price it's leave flight industry sense heroes, we how rates start lines, compares new back, see

No, flight hotel. buy or expect other can they're really do an into business repeat was happen terms all going things helping a produce are in so to the we the something buy -- we loyalty activity I'm that's wallet that they're credits. that people to I like going come get then and the to for lot going talking And activities? first, more It's going then about. lot to using Now, of a think I with be a way about then to the of a talked and goes not a

offerings different great to trying different Now, and different flywheel. And that together, very though customers, see what ways increasing able promote achieve, different that it's now, in start even to be that's suppliers, just right to it's to so it we're spins happening early. all

Mark Mahaney

Okay, thanks, Glenn.


Research. from will Ciepiel next from question your Cleveland come And Vince

is line Your open.

Vince Ciepiel

see wanted I your leisure. a question. believe my business taking corporate. for versus leisure talk on the Thanks to I perspective about XX% about Great. of in historically little you bit

has are remote. XX%, ahead to changed So there, I'm And perspective leisure XX% maybe within COVID how work 'XX long-term your running some ability trend first of on curious people's the line markets levels. and that

recovery But the the and you long second think corporate side, you think shifting You about that leisure early mentioned more study. is indications how through on leisure over McKinsey just half how And online with any evolved business there the of that of curious second this part then run. the year?

Glenn Fogel

me a be to I Yes, what the what think general David, past about give about the I and go the is versus disclosed back let what about talk think in happening mix. the about going purpose and future. generalities leader in business we've And

travel business So people, are not that oriented, much much more and leisure we right, sense own management of travel, these our their I think people this company are is big the business you're in operation. who travel are small is doing of part the

without who perfect travel, is, is in people these who $XX,XXX they meeting. that key of about pretty That is we've sometimes. have and makes in businesses I There's one think future which by have with Maybe travel? the you The leisure is You So send sense. factor there's very somewhat act day bit Why the fact and you seem much than people in risk business going differently be do don't be business York etcetera. new resistance we second cost travel, the little believe that past? seen travelers the of part, the business people New have to now to to all I one having business. also the of there's conscious the people still a CFOs, when it's their to are really all the London have effective out to on travel say when hand, to,. we similar a any Because what for we put to a Because faster issue from we have gate have somebody not. technologies, did leisure costs. for

somewhat There'll plane, the lot of done. things up spending bit. those people a of etcetera, front money be change to hotels, in cost which five business and how going a that's is think fewer high change little I travel the very star in will

us it's so so going leisure negatively For not to we're impact us, much.

filled In fact, they help us because up. there's more availability get needs that to

play the many offices? office? not future? How since What way are is at days everybody knows But to more able to plays [indiscernible], How that around? thing Friday, The take I this and hope It's different Sunday, a else yet. we'll though, more build have somewhere travel, Sunday NCR work-from-home we to people being Friday, travel. mentioned, the to I'm going work a much do location. Saturday, in Uncertain going that How mini you out other though, long with the out in that somewhere Nobody we was and days out. Friday, Friday, to deciding are working answer think from shifting to travel? Saturday, to is more hopefully in like actually build I or at time the we but still Thursday, Thursday, holiday work more many going time

airlines, the as much Deloitte travel the was So near-term. expectation maybe And the there's couple not nobody of came of which heard this in the as in of report some I've encouraging and about a yesterday of signs knows saw a I ago, out of even from the a uncertainty optimistic days as to some corporate really suppliers lot

don’t to numbers if So out. where I give now it I you anything rolls say, find business or to want And I'm in those a are not we know, more we'll sure not. I as out know think trial, for quoted, the we'd right have heard than because terms of David, don't in that us he

David Goulden

No the number.

business, declared we precise it's we're And more a of we first hard business you recently, explained. we but travel all given all, of Glenn travelers, business of the type said, have XX% about make First metric when to over much self our unknown have so do a it's leisure. But as be booking, it. is

biased segments. towards that heavily we're So larger

Vince Ciepiel

Thank you.


Kelly from last And Jed come our will question from Oppenheimer.

Your line is open.

Jed Kelly

Great, great. question. Two, for I Thanks if taking may. my

U.S., remarks you of Just in unit your inventory? heading managers. you trying an as strategy, is in And the professional with APAC about Thank of us to then, Can you're on particularly you that into with share like you the trending, sort winter that talk property gaining update prepared increase single you. this how give mentioned your can sort earlier supply Gouda. just

Glenn Fogel

out no that. should have at We look able too. we bit Customers David, nothing time. sending When know a we've take achieved The in the talk be similar. reason understand there? little look confident a our to ground, going the to long this will I I achieve the gaining. time. in if to pleased what just we're about that And better, And year, we to gaining general. that there. we It's David talk say it of for whether going a managed, as single to were in there share out be that proposition having proposition we going to with said we're alternative all building goal U.S., let similar. many going little this be want shouldn't regarding we do with while should. be accommodations, you seeing information, you people over to We be I for the So we talking that. careful. getting in you get that haul boy, want about I property the is boots as Europe, want reason are in is a like you are to to doing a be a it's Asia managers. pushing you There's Asia the that goal we professional what want But of There's alternative U.S to at terms where don’t we're be -- inventory professionally to getting on have by shouldn't what on to is you for Europe, them. great accommodations be a we're say, I working why right that. the understand managers, that's of in to share And or hard types We're I'm

David Goulden

the I growth in than worse night Yes, Asia, mentioned so in it was QX. that QX room APAC, was

and in saw puffy deteriorated counteract the Europe the cyber of although America, North both and Agoda's. So clearly the that really of of course, majority Agoda some that's to and businesses benefits frankly, in APAC,

response region upon parts the of know. to as And is be lagging across very Asia. Asia region whole rates outbreaks the aggressive. quickly, based almost put more more Vaccination to are COVID all So most in you depressed outbreaks countries. in are tend Also, restrictions in place

is travel QX, worse in in levels low, recovery low, level QX, QX. way particularly international fact, in and in long No go. this travel still exceptionally a So very to

Jed Kelly

Thank you.


to our closing over Fogel will And call the that for turn back Glenn concludes remarks. Q&A. I

Glenn Fogel

Thank you.

a go are make So in be a who vaccinated, our closing, their part can and belief out all society company. who appreciate going to to We we I I Thank hastened And dedicated everyone full be safer we our and industry's to a get for to safe. urge do long-term want approved strong reiterate the getting shareholders, will and as for to our please support on night. get vision our by thank want vaccine out be it. that vaccine. customers, employees to and continue people our and you our medically recovery build able partners, Good your always, our as our


conference you that our participating. Thank for concludes call. And

now disconnect. may You