Booking (BKNG)

Glenn Fogel President & Chief Executive Officer
David Goulden Executive Vice President & Chief Financial Officer
Justin Post Bank of America Merrill Lynch
Lloyd Walmsley UBS
Kevin Kopelman Cowen & Company
Douglas Anmuth JPMorgan Chase & Co.
Mark Mahaney Evercore ISI
Call transcript
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Welcome to Booking Holdings Fourth 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 guaranteed 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 fact are intended to identify forward-looking statements.

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

Glenn Fogel

by Booking joined the parts call. to spread its David quarter you we throughout Omicron world, of than CFO, our and EBITDA compared the to and million, in this better we other by were Despite in U.S. in closed out down decelerated respectively which Holdings' I'm XX% and of the Goulden. down delivering fourth $X from appearance XXXX rapid Europe, variant the billion of December. welcome October revenue conference Room $XXX nights fourth November adjusted expected. to afternoon late Thank and and quarter XX% XXXX

of Europe to time reaching half were February of in summer meaningful for and I trends, encouraged at However, ahead of XXXX. we this higher America, December, gross books both levels where the with are the am than pleased gross now At to on top in bookings see bookings strong line improvement first nights since which we Booking.com, seen Western a and say have XXXX. our in North period that room I'm with in XXXX

Delta that times, hopes a variant these bookings note the of back first normalcy a high in several our return for cancelable. Omicron. which XXXX were a set with was percentage year and Although then to are I

However, is proof are people this happen a in that to world. travel are deep believe travel. currently have to it desire and safe book witnessed restrictions parts to the travelers of we starting people we travel and seeing When leisure many lifted,

backdrop expect still in While when trends so we far as this results additional for details fourth his negatively there move the XXXX, will current are quarter we will favorable remarks. impacts and be COVID year. do provide potentially a we first periods through our the on quarter is what David travel in seeing

am of have to As and I partners. accommodation strengthen look I proud our to difficult year, we supplier done our the under driving work times back to business customers still over traveler last the core by benefits our

customers' our our we remain needs of For focused customers, critical convenience. and addressing choice value, on

and Genius we for Booking.com our partners through program. customers of is value the our loyalty many One ways provide on

For and airport complimentary benefits customers, breakfast, program Genius room discounted like our our other and loyalty offers taxis. lower upgrades prices

nights For our our incremental our delivers customers. from Genius loyal most room to partners, properties program

benefits Genius focus, by we of on logged Genius in of have access program of top and higher our is members we spend of increase any direct our at with meaningfully time. customers These for in customer improvements customer. benefits even to to to value X lowest a degree loyalty X tier the two year, transaction service lower third the prices our our customers last beginning Genius and X. Level fully the the to Genius the that indicative XX the who for and the Over available launched These we beyond priority account of Genius our at Genius have just our least XXXX, to made years. At and bookings to a relationships are last program Booking.com opening loyalty, customer an over customer and increase our to creates Levels expanded focus aim Booking.com. on With level in frequency, efforts addition move support all

app, Booking.com's year, making more it last have mobile to user-friendly the use. Over easier and we enhanced

before, globally platform center as a engage opportunities we third-party travelers. Booking.com it an I critical was it where one research app and In OTA is connected happening increasing of to number is our trip as As allows the a the downloaded XXXX, more firm. number according are said bookings to also It with us experience. app see directly the ultimately, of

For higher quarter year. the we last saw our XXXX, for in success the build we full the to a XXXX performance improved efforts enhance year. directly into of increasing the on mix customers and fourth leaned even and our consistently us marketing we In are our in the direct the over app order we during as channels year, to with booking saw mix than

platform marketing lean will recovery. at performance during appropriate demand we We customer more bring into to our channels continue look as the to to ROIs

year versus very we the brand that XXXX two will bookings with performance Booking.com particularly we room in hope Booking.com's was was in in first though strong which so, all utilizing of are relatively or In even growth weeks quiet consumer slogan perspective. I a ad XXXX, to A brands. and ago growth which you marketing, where example audience. night gross marketing, be U.S. timely to markets of We addition Booking U.S. of to customer-facing brand the looking we Super awareness raise marketing Bowl had in our great strong saw from our in reintroduced a in

Bowl introduce Booking.com audience. beyond marketing We year are looking in year's momentum in the an to order performance that accelerate of of last extends the to to the the brand rest Super through even broader ad layering by

acquire mentioned more have customers ambition in quarter, to an we medium last space. I intent the As

channels. work to marketing, for continue We social foundations on strengthening digital including in our

spend our far so relatively remains However, small.

from customers platform. demand broad partners, we a types our bringing to properties the which For of partner on valuable all to accommodation potential platform on supply be focusing to our strive our audience means incremental on

mix XXXX in global line our in few nights in competitive, is of room mix by where nights percentage of a For XXXX our room to offering was XX% accommodation XXXX about relative XXXX. increased alternative our alternative with points In Europe, levels. more of accommodations,

to continue targeted of we come We reported alternative stable prior supply which our the on We market, XXXX. and the additions to have the X.X in work in offering where hotel to year. of alternative with million over for total year relative last XX both million properties have the and on and accommodation were U.S. added the closed out improvements over Booking.com, year competitiveness improving accommodation listings and plans more

about last accommodations in support in will of our quarter, booked of now in payments. key strategic fourth some about Booking.com, bookings made with adopted XXXX total connected the platform of we U.S. payments its half business Let processed have properties Globally, further of gross XX% properties continued me XX% priorities adopted both were about the which property we year gross Booking.com's XX% compared and XX% in payments the to now talk to around in gross XXXX. year a trip. about the payment that bookings increase are further These have XXXX payments. the priorities the progress and our are mix we believe interrelated bookings about our for year full at at that over at of and the About On core growth. U.S. enhance by strength QX the partners over in saw full and our strategic adoption have XX% booked through brings

with both and favored intermediary cars, will payment by hotels, we Booking.com's travel gives we trusted live and providing flight their a also enables our a booked bookers. of potential positioning represented and XX% us flight nights Booking.com complete Booking.com. our in to flight engage trip payment work services work Furthermore, Booking.com's We room by to payment attractions. their in discovery build us our as accommodation Booking.com's continue these collectively of on countries now robust us other to to who allows is the XX supplier choose our platform about see of our as an platform in vision. platform vision, travelers more offering accommodations, options partners across which trip our on cross-sell customers. as to a to connected provide early made flight XXXX. attractive connected in an and accommodation we key Flights XXXX progress platform customers process This component options opportunity and larger flight flight On alternative ability

percentage We to drive are which can And continue attaching are to the see to our encouraging offering accommodation are Bookings new positive flight them. our flight bookers that cross-sell of over we signals to to entirely an XX% booking. incremental us accommodations an demonstrate of early customers help customers, that can product These new flight their those and customers new platform.

In complex seeing €X.X and to Etraveli Booking.com cross-sell the online optimize signals further to our largest on Bookings we variety regulatory November, work early intention transaction announced one pending leader technology. consumer-facing They've supply to from developed have years a powering with successfully booking of and in a last and been flight platform then Etraveli content are year billion expect and our is technology continue two the is flights. positive for flight-centric over agencies distributed flight travel Etraveli of we product. approvals. flight is the will providers close later comprehensive sites. We this sourcing opportunity a to build the in partnering we acquire the which Etraveli

we offering, expertise last it importance exist XX% some an Outside available development Given due product which significantly cities critical the flights of agreement. Booking up Viator half successful transactions flight year, independent believe We that Etraveli Musement. integration part limitations coverage supporting technology to Booking.com's third-party accommodation supply while from from our of will in flights, our Etraveli that of has over represent closes, operate trip ago. now coverage of is while the current the connected commercial the the attractions about is and have When as company the a of bookable of about of Holdings within deal further its flight platform. improved in-house attractions and to the in continue year Booking.com to booking.com's bring also unlocking strategic to in

address build XXXX, we to While few XXXX very travelers the is still like modest, busy a help trip a end a to other keep bookings had engaged recent to and that compelling, I'd our believe developing product important We updates. loyalty. volume start attractions will attractions through so and platform easy-to-use the with of

new First, confident without as generate and partnership further partners, accommodations business affiliate markets partnerships $X.X the We acquisition U.S. in attractive BXB team We to of am December such Getaroom partners The customers Priceline will to business of BXB market. America. channel distribution combined a strategic current expand I the welcome dollars business very or I Priceline's by key partners with particularly offering distributor that Getaroom leisure at about help reach underway where in in rooms, well technology are channels to for online is integrating needing help customer we inventory invest returns and hotel stack can expansion the XXX into offerings to servicing BXB will partners hotel end to Priceline, for an Booking marketing and North through strategic performance robust Getaroom brand affiliate closed Holdings. demand. it is BXB primarily of of am the excited enhance significant to billion our improve demand our while component providing the North business American business. the BXB-focused efforts and primarily generate Getaroom a our partners in to in important affiliate Getaroom believe

partners. some news weeks long-term one into two Majorelle, our you to an ago external strategic seen most that Booking.com enter have of Second, trusted plans with support partnership may the customer of expanded

still Netherlands U.K. of the worked this Majorelle to works is outside As partnership The employing Booking.com subject the consultation councils customer representatives regulatory begin for that part of most and service which approvals, with will previously and

and will business have successfully help increase years this service for working flexibility in our with order we expanded been seasonal six meet demands offering of efficiency going the Majorelle help of the partnership evolving to forward. customer and We our that believe

for early Travel in our of any coming on importance of practices platform November, to its our that more enabling influence global carbon filter by accommodations, is has to showcase their the whether launched a first-of-its-kind has is ways implemented through a who are combination for and Finally, We of a believe of discussed the been tackling property searching Program. the program XXXX. on sustainable that When travel Booking.com our a see practices. urgency for badge or travelers a climate that This greatest goal crisis on can neutrality sustainable search our badge based to accommodation to the given Shortly work travel-sustainable I after call and travel travelers results on our call, earnings last the badge. sustainable property partners towards earnings sustainably. features looking travel-sustainable together industry not Sustainable can

to program well report looking are and and executed and action In results to about plan efforts in talking publish other conclusion, when we We and sustainability XXXX. related XXXX strong forward in climate more sustainability March. our produced this we first commitments our

ahead look the by we bookings books. seen level XXXX, our rebound As to am encouraged so on and of far have I in year we summer this quick travel the

desire travel While bookers. confident demand the volatility result a in to as some is we see effects strong our recovery COVID, to travel globally of I a in am as leisure expect of among ongoing trends there very the clearly in continued

which and who the region. monitoring to and concerned continue we demand continue could are we be are believe Europe to strategic recognize our to going capturing priorities. we course, Overall, work may that travel executing are situation well be we'll positioned Eastern disruptive against in Of we travelers our

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

David Goulden

XXXX seen fourth found so results in for of results Glenn first color quarter; in are you, thoughts GAAP on XXXX good far the reconciliation and earnings in and rates quarter we've review to comparable afternoon. period our can on the Thank XXXX our trends and the XXXX. growth otherwise Information All some indicated. our provide results relative the regarding release. unless I'll to be non-GAAP for

by call, November the a improvement by in third on the earnings October our further improvement Asia. fourth results that to Europe, discussed for we quarter our trends Now quarter. the in On driven throughout saw we by driven followed

the decline were in driven Delta resulted recall the nights this countries at regions than was In Europe towards will that by overall all with end QX. seen You variant versus of mainly in than by increases future saw room This in QX driven XX% a November, room XX% trends few worse have a below QX recent decline that the of variant in slowdown worse XXXX. worsen we time. reported in slowdown only Omicron December Europe October weakened which and across to XX% October our concerns. a infections in number nights declining in points XX% October trends but from XXXX the the XX% December continued

while XXXX, QX fourth quarter, XXXX, about down versus full down other QX of strong QX in Europe modestly. the rest was across slowdown and world the the Asia with QX primarily continued improved the U.S. Looking QX was in growth declined which quarter; driven have was by XX% versus considerably while the our to QX. in Compared still regions versus

saw as most bookings a our room of the However, year. fourth Europe regions meaningfully and through apps December, of nights our for quarter the full across U.S. we mentioned, all in our in slowdown X/X and primarily represented I Mobile in total the in

direct our of mobile to to Our continue apps of channel. our through greater see increasing us than continue total an represent We to coming nights XX% bookings. all majority room the

QX of and channel international than QX decline a room nights year our the XX% in few direct down to of the compared in The Our QX was XXXX our increased percentage and were room fourth worse XX%, about room XXXX. to QX. with international the points relative XXXX total QX. in in a as almost for levels, full nights quarter mix line nights

slightly We domestic December see nights international severe continue fourth for QX. to room for more quarter, the growth level in in our a The domestic. than slowdown also was below

less and it in the in The was rates about were versus the QX Omicron XXXX in The year, booking Europe, to QX our global and QX full of cancellation mix increased about for increased XXXX a is currency points to in and of Alternative global was was short-term of shorter which XX% our in for in underperformance impacted fourth Booking.com, decline Our quarter couple the QX an basis due average and of on the daily alternative by Booking.com mainly meaningfully few of a mix for concerns XXXX. for Within accommodation room and the strong a by customers XXXX full nights to room XX% business. accommodations the in QX very year than in in full in the in Europe December in flights percentage fee focused levels. on Gross needs. percentage versus window accommodations performance is increase about line and due travel than as was XX% of a about contracted of to North relative percentage X% much by declined few points XXXX further nights XX% year of points rates December variant. America. constant relative up the mix with

accommodation which about region; ADR of and Our lower-ADR increased Asia business constant a a in mix currency benefited region. in points percentage decrease an which a business is North higher-ADR from in mix of America is X by

less X% XXX% most for Constant especially notably and currency of North bookings and flexible due Priceline America bookings very encouraged pricing for effects, plus the were which driven our mix we year quarter QX a XXXX see our XX% from for more of the billion North fourth revenue QX component our higher was than of booked Europe. in in higher full a by-flight was QX expected tickets constant $X revenue year, Airline $X.X of impacted window. in was double better below XXX% XXXX percentage in the by XXXX We're destinations. generally to negatively the strategy. QX of from gross XXXX. regional and which currency the rates were our was part than of Booking.com. Excluding ADRs were and points stronger in multiproduct our fourth full in gross as higher higher-demand, sequentially fourth XX basis business in about triple-digit to quarter. the a than trip America within by quarter impacted the Consolidated to Revenue growth and bookings XX% almost QX Omicron from ADRs revenue down Europe XXXX more growth most ADRs billion, was rate higher shorter up in about than up due connected below increases leisure-oriented our revenue QX flights continued and recognized expectation at were bookings XXXX. driven QX. of key is a and as quarter booking expectations versus revenue up than strong regions, Revenue in than was bookings deceleration in

Excluding levels. XXXX our rates line timing QX in underlying about impacts, with accommodation were take

revenue processed than which was variable fourth QX This QX Our year was revenue categories. our gross XX% bookings The little expense a XXXX, of primarily recognition. XX.X% timing Full better negative by improved as line, offset in QX QX and full revenue versus differences and strong percentage with a OpEx higher were helped and cancellations full XX% gross is to highly impact more expectations. platform about a due in gross expectations costs. is as late than revenue in down than XXXX. fixed bookings which a versus this other and versus was were XXXX higher and bookings adjusted primarily higher-than-expected were higher-than-expected XX.X% a between bookings in payments decreased call of the XXXX. was and Booking.com's $XXX billion below expenses our of slightly by gross drive marketing lower to XXXX, we Sales in XXXX. About revenue X% expected. expense the the our almost quarter XX% EBITDA but due which expense lower-than-expected XX% mix due higher quarter was The results bookings of our of of which the ROIs XX% center $XX to was XXXX which Sequentially, year through year, driven business. the XX% volume outsourced than for lower was from Marketing increased XX% a QX line is gross million percentage Marketing expense the XXXX. EBITDA of in up XX% below in direct merchant

to costs. of QX personnel lower Non-GAAP income personnel as expected They versus well expense fixed lower-than-expected means rates G&A of as IT more expenses net to came in than higher our by about offset XX% $XX.XX lower aggregate reflect QX in in non-GAAP our and QX $XXX costs in We million due with finalization accruals IT line This bonus to categories into QX EPS our down due were year-end our not XXXX. costs. results expense which of run do XX% going XXXX. be

tax higher XX% rate of QX was non-GAAP than Our XXXX. in XX%

in expense operating QX. included of XXXX Our XXXX. which non-GAAP tax rate higher in tax in On GAAP in was expenses We $XXX tax basis, lower XX% full the income versus income a high proportion million pretax $XXX net of to we $XXX income million. of income GAAP -- a nondeductible recorded of relation than nontax-deductible to quarter a year million X% due expenses of had

our position. liquidity to on and Now, cash

billion Our primarily ending acquisition, of free $X.X notes about investment $XXX versus QX cash flow about housekeeping by $XX.X positive our partially balance Two offset QX ending Getaroom driven and was the $XX.X down billion by billion of million. balance Getaroom. cash of

end not is first and of at the closed The meaningful QX was results. it to QX that

authorization commentary $XXX our shareholders February. incremental purchased In will January remaining we did our about The nights Getaroom we to when date January, capital release room These is QX second early returning and results. included be our incremental million. nights we the actual include started from room have about under in that and not to

years. our we next remaining that three Assuming continues, expect travel the still organization within to complete recovery

improvement you, the comparisons recovery Now improving trends around Omicron variant XXXX January quarter. February. driven with throughout continuing declined thoughts January a make We travel room domestic first and the nights from saw in in improvement was about the remind region nights And as concerns our eased. indicated. by unless an cross-border otherwise decline the December to XX% to into XX%, on within and we'll travel Europe. in primarily room European for This

Our compared meaningful to room January. the the all of night versus about had of The levels first was in nights in was February, in half Europe the improvement of while half XX% room Rest Asia up about a XXXX gross U.S. has XXXX and were with February, In line and across about we strong February growth. bookings half higher. saw world first were growth of down our first XX%. the of slightly regions

international over in XX% first XX% international COVID. mix mix night of to recovered we've of February December which the about is Our of the since from highest in the half room start seen

was XX%. reminder, a mix international pre-COVID over As just our

and travel February we than in a improvements of in first with length within XXXX. on of comparable booking shorter are new large Europe the seeing impact. Europe international in the QX largest in mentioned, Europe in stay cross-border and The a longer bookings we're the broad-based I routes As countries half see bookings average window have driving

quickly. bookings the are confidence when seen traveler quite travel lifted pandemic, As we've throughout improve increases, and restrictions

develop. will changes QX, rapid the the room predict half of first it's difficult remainder how the the to quarter nights Given during of for

that environment in the in recent infection to of rates potentially our COVID could still high encouraging are part some with in impact we it's world see and Europe. a especially business, the improvements, geopolitical While volatile uncertainty

window summer far did We've QX, and XXXX. the in where are for at for are XXXX. versus period Western are gross seen bookings in for summer So summer the less for booking than and booking same they of has time than Europe, in double our up the in U.S. are this booking QX. time this recent Booking.com were higher The XXXX bookings gross it strength were the versus in overall the our higher trends contracted XXXX gross at they digits also than summer in stronger bookings trends

high for rapidly. summer so Of percentage change things cancelable, course, very bookings a all of could are

a in we Turning in to the far percentage and to due room versus to an ADRs gross have QX rate be to increased strong versus change XXXX the very statements; the at change similar in several QX. increase currency better in flight nights XXXX expect QX than in bookings. Constant income bookings ADRs points so

as revenue percentage as a points especially a expect This in in than bookings revenue QX X.X booking in recovery gross percentage from impact to bookings quarters. revenue points the percentage the QX booking future the QX about half negatively in of negatively higher difference X.X meaningfully We offer QX on impacts be revenue benefits lower bookings and in as these deceleration XXXX first booking of of high trends revenue February, stays increased in percentage gross be could if percentage of if quarters. future --

expenses about gross bookings to XXXX. line QX trend QX in compared will margin in expect We with

in QX. other sales as We as bookings expect in of it to was and QX gross same percentage be about expense the a

aggregate expect in of the to the QX basis XXXX expect will sequentially deferral We be of to impact our from benefit planned year-end in finalizations well we sequential than in personnel-related our impact QX a due more increase seasonal impact we just higher in my in of the expenses on due IT pre-COVID including about that EBITDA QX. down QX but declines reminding is revenues. primarily be more QX seasonally to the explained the and than accrual saw lowest on expenses, hiring some costs, QX as quarter, you significantly and dollar Omicron adjusted as fixed XX% increases positive from In

summer far bookings the about we recovery strong encouraged ahead, As the about later the and travel. think continued seeing about of we're full we're year optimistic so we're

our horizon, we during line the represent driven the destination difficult do it makes which could the expect we All turn and top predict gross total out. by There If this including how our will the travel. to continued single-digit situation on volatility low year impact as are will However, full the markets, they percentage very at look other trends geopolitical uncertainties current progress combined in very top Russia COVID. of a bookings. how year and line Ukraine

XXXX, between be mainly was about XXXX, a but and due than bookings of lower as can recovery XXXX impact to a think an plan of gross it and the factors year. to drive fall solution We're XXXX. in and additional we technology. front expect the this recovery from and believe in travel mind, These longer-term our and a bookings we percentage opportunity loyalty revenue our shape people our buckets; new higher in thinking to lower expenses. customers our expand As of expect products more revenue, is in differences XXX in and In With P&L our business. our existing This customers this the we than partners. expenses of the basis as future. to and to for marketing build the other expansion and to this consider we we it also marketing, are us, investments with percentage accommodations higher strengthen to our about points our few in was thing the fixed for was timing in requires gross in XXXX in about be revenue into improvements excited In of revenue. than position right and of platforms the and XXXX, about when attract in in sales four and of returns of a for to complete there business gross and do to XXXX. timing other this XXXX the travel bookings, less to more incentives we operating opportunity believe full invest We than much Starting

into there Moving a factors come marketing; of to are that play. number

competitive, travel expect the towards intend and as especially remain developing We We in see continue major to moves performance media intent ROIs and full remain active we'll to environment our U.S. the channels closer invest the in in in you'll us social marketing markets. and leisure the other recovery. medium market disciplined to branding

returns. strength where gain Our share goal to can marketing be our use continues in with reasonable to we to markets

attract be year to XXXX programs as exactly percentage initiatives to out it and new XXXX. also how both gross these was in existing our we platforms. and bookings in We the play expect and know year of factors marketing to higher It's to to difficult across little will a expect but the a run customers than during

course, making mix believe an direct investments a in time. our we mix direct marketing Of helps we're the over and efficiency increasing result will higher

expect our expenses related Turning which processing third-party bookings. mainly by but higher higher as anticipated service area by fixed these points are payments additional to revenue. The This gross be up a The to include of basis and more impacted expenses. payment we higher than a offset last is from costs to XXXX not payment-related sales G&A in percentage is IT. additional expenses; customer operating also XX personnel, expenses

impacted by personnel our expenses areas, product especially in product be higher-than-average increases, and to and key expect annual areas; headcount technology We bond-related including increasing wage functions. and technology by in the and planned

higher in XX% expect XXXX. than expenses be to We personnel about

to reduction that do in impact EBITDA IT and expense by to and include a we'll not taxes, investments with a anticipated an on XXXX including enhanced spoke from personnel Also, other of much positive customer of we G&A update May. driven have from in and adjusted small number environment Getaroom our we the expense and services XXXX. comments both anticipate P&L will sale digital partner-facing expect strategic work that enhance our a on returning this the the and XXXX to about. of our to internal partnership Majorelle initiative you do Glenn grow impact personnel again acquisition in increases faster factors, systems. not to The hybrid and We and for expect made than We

year that Etraveli close As impact minor will later this acquisition a will result in to expect which we the in Glenn P&L noted, the XXXX.

So mean that revenue shape about recovery recovery. the when will recovery lag thinking and factors P&L the bookings in gross recovery EBITDA will lag the XXXX, revenue of these

recover EBITDA Some our ahead we acquisition is to in customer earlier. On of in expect top to product revenue. bookings spend the expanding plan and investments in on revenue make of marketing we lag mentioned we offerings versus of i.e. this, we timing, the

EBITDA than in Taken to we higher XXXX. few together, expect in we a XXXX margins be points were our

our With more and against ability confident In priorities. delivers travel take in industry-leading to I'll business focused for we'll investing continue with XXXX, as a we're products EBITDA to your more demand market and execute that, capture margins. larger turn to to you beyond strategic global build remain the closing, recovers pre-COVID and Chris, our And on questions. call Q&A. had the to over that more Looking than faster-growing share we EBITDA per with we dollars earnings


question of Justin America. of comes first [Operator Post of line the Instructions] from Bank Your

Justin Post

know like 'XX booking your about Great to lot back bookings see of looks I to there's what recovery. a post-travel thought levels.

So we business normal. what you're to things you've obviously, And acquisitions. of trip excited booking levels to right thinking of could when know the as couple sure you're a seems I some connected get as margins be made and if the vision those. in far could wondering I'm revisit And we look direction. back your about, about I'm like the

level about absolute revisit So the also how you're what once a the to of maybe get could absolute bookings full absolute we look thinking value could the we of number recovery. like EBITDA and --

Glenn Fogel

don't handle I'll say David his remarks. the let prepared he Though I did margin. it it said just again. him he in Why let --

David Goulden

color. a And bit me I question. let appreciate you give little more Justin, the

you are has in we that was It said, as focused our where in more So some That's XXXX. it EPS XXXX. business EBITDA upon, in was dollars. We've go color diverse absolute given in larger offerings. than it a product obviously focus. more and faster growing It's It's of is I XXXX. dollars growing than things terms

XXXX. is margins. kind about final to that, that to can other get were volume And dollars industry-leading than EBITDA we we growing to goal EBITDA our what they're We too beyond expect of to don't have want than going faster once are pre-COVID. we But our be normal beyond specific exactly EPS expand give state, in they more that are we dollars, more that expect we'll that

Justin Post

open. to costs? you are those? going Are still really Great. one made, and you you do is you drivers? save about help acquisitions two closed those one think areas And Or booking actually then the How that are are you those thinking

Glenn Fogel

Justin. acquisitions, take two they're Why them different I don't separately. Well, really

it And have is gotten that a parts otherwise. situation On we business. the adding wouldn't critical many the Priceline to very connected an our in one whether of there I programs, And one, is that pleased helps for additional flight Getaroom it from wouldn't this the the it times, And to how prepared to us customers be So bring getting that business see was in at affiliates. are through technologies are as we important Etraveli, have is in in very fulfilled. vision where, much absolutely of customers different who have marketing that is had pay-for-performance and my gotten in going number pointed or what flight only our the accommodation. a then growth have of number not trip other have new Getaroom bookings our coming but we of described customers us number fact the business by also contracts remarks, buying out I that bringing already BXB are different are them and to brand. that get they we These coming as

do resources that years. things would Probably time, us to powering require we been has of could for a Etraveli product to use take we want the on elsewhere. own? Great technology. would that They Booking.com Now it lot our long a two recreate use

we're just when able things going and to do do commercial bring we So by were in-house that partner. Etraveli, a we to be that acquiring technology couldn't

great, having So as and combination. to very I'm then really said, hopefully, great a develop began close in forward we and the that looking future to


of is from line question UBS. Lloyd next of Your Wamsley the

Lloyd Walmsley

if can. I Two,

revenue the timing question And margin an consumers, to drive about or repeat First, even for of new contribution how can margin-accretive? it if among color beyond would products? and even rates could see pass incremental wasn't value-added around drive to from some you give cost, that you the us that give to therefore, features who payments you the positive P&L? trip Anything it you second you're you that with So revenue, safe would some of there us to is faster great. be, direct revenue thinking some what adopt just products? it do can around the connected that rates say benefits could of maybe directly growth be update of multiple adding users adding would if some then along share And likely

Glenn Fogel

Sure, separate questions. Lloyd. Two

want more and Clearly, it's let about specifics. talked product little add way how going Let get a the me to talk this in to critical pay to the pay to want get to I'm and things customer about the we're some he developing supplier paid. in bit the they little one of that payments more enabling paid able they add sure it. the and I'll a David enabling to is past way and we've in the want to a what be

people the a they'll cheaper their in but way Then much it have us make a there's because it's goes go us. can it more the to increase that not then in ease we out beyond only do beyond future. don't do you suppliers, handle our is add and on money that can as improves be right little to the because have that things; it make doing And do old let it. obviously, payments the that both and business in in of is The the to trip. he own. but but in that want that. and through be helpful finding use, People flexible-type really to number enable is do our way Booking.com own out we trip connected a that product. it's that then payments that much you you that, There anything pay us. we'll Creating work doing will which need there more enables They goes So have in of unit model can we pause more products. more payments us too. one anything together a out in connected payment of undo And it it we'll doing not if a to way, see to the they're not we more that doesn't if convenience then David, absolutely all different something put particularly, coming and wrong, our market to fintech But for our we doing way agency on I'll than of they're they're too. things the is helping and getting getting payments And more it, it if are to so don't the cheaper going to flexible cancel wants can a out business. just right way our their it's now That's way and

David Goulden

frame. new And Nothing for a did those you more market that interconnectivity impact major the lot and timing. you value-added Glenn, market the where you great XXXX-XXXX summary between of in of some mentioned. see on XXXX. building in into might mode any time those areas. still be think, A two of I terms entry impact products in will the We're

Glenn Fogel

do numbers trip, still out all. have put we years for coverage don't can the We you XX% we by tell connected we that to all the a to out, can build bit about year. have I verticals. we step a accommodations. Booking.com product at coverage the do only as Have is lot Lloyd, build technologies last some of to And in improve out. thing, Also second XXX% didn't product. Then the we a just the areas had on terms talked the little of ago I that one things of at that attractions where Etraveli, couple the have just of flights

to put a to out. XX%. of other all made other we the lot Now ground areas, then had there are parts good We And trip. of progress that transportation,

flights shop willing doing, will going then where that verticals in or and very, customer a seamless, the can platform finding we of parts that's that And people et at scientifically for. but some the that sure That for. e-commerce to to make they know value. make beginning, cross-selling At the that to They that we trials time an of we're make develop combination, cetera. that so one as going The business customer I look we, what we're more they're way that offer get don't where buy customers to is so sure the We'll using incremental value so money. we're and around, don't going we the able to it different of take course, I target offering when easier The other being are happy chime time, go and to of they it get player the easiest gets is is cetera. place some and making. things goal, develop It's about suppliers course, way and And Booking.com that's that very comes that make do et of we to to around. works have all people in the out they're is are same our different well, they're to loyalty, out, most supplier. the building in then we're we're any because a bringing you, supply, value love doing frictionless happy, in And people and progress that it it's the more. that's direct to pointed out. the supplier where same be who more kind going will the So from and first

David Goulden

likely and when that likely customers, more uses more our the we interest multiple to too customer more to add use as things, much likely to can kind are most spend base who with of our ones not just use and to the Glenn, top I'd a often at most the app look And surprisingly, that well us, directly.

offering, build we're Glenn app, trend that direct to loyal upon to the build frequency, that that's is So that, loyalty that build value, build can evidence the customers the good model more we do via the more the complete on. we have become. linkage travel a those And trying mentioned. that And we


Cowen Company. from the Kopelman is of & Kevin of next question Your line

Kevin Kopelman

to data a of start saw do Omicron forward the what latest sense and got? that have, data in in a booking on that opposed of you of restrictions the follow-up to I the Based coming the that still saw numbers still kind February are you recovery European countries as extent to months the the trends. activity reflect in in that, half year? levels are you December based follow-up place that see And you've a what short-term of travel all had catch-up after on extent on you strong many that first the the as you to hurting pressure in sustainable a booking going the could have

Glenn Fogel

I what numbers the driving think very a so half ball the for for into have talked to good difficult of exactly first crystal Kevin, perfect that is February. it's anybody David about

for can we fairly all tremendous certain travel. there's of think demand feel a pent-up I However, that amount

it they're people several wanted talk able travel to not to And I seeing, the cash. For Savings travel. to way hear have industry, are people up what have years, in hearing. hear when been so I it they're I they anecdotally. CEOs the what

is feels I a just And just Omicron this think want as see people to I think rebound what seeing. that don't travel. we're would little of an everybody I bit

by restrictions reduce will people And there about EU able feel what There Those parts the And Europe. of the those having out an travel. are to new the that going eventually, better restrictions. think too. though, are go to of problems. rid are frictions are of down, world coming seeing getting about are travel, feeling in things are going help suggest still some all wanting of to course, people safer. down, in things -- counsel the that being is I some announcement further people There's we're

That it impact going parts one. things several past happening world there also that macro I of good of the linear So and I to think about the were woods the And about are we still I this then can the back travel. thought times, there of travel. feel woods. out to we I the and all weren't is Many mentioned future mentioned of we also events And at the mentioned made times, course, out in different some demand. -- said, David David have lot uncertainty a about how feel are of look be. of good being

So I think we to all be but cautious optimistic. have

back. long Here's the do the People to thing I come are to absolutely in going travel. in we're though, run, do I the know know, well long run. going

to in stop being can't in be am that future. the travel. human I demand How that wants can't fast? certain confident but We You our

Kevin Kopelman

on still Could travel activity? are limiting piece pretty you Or much seeing in Europe? To is in what restrictions still Europe the up comment you extent the that some of restriction already?

Glenn Fogel

not had it's -- completely time. counties No, done. at the The countries different the I you list look different all and

and that completely. them also, around you some. or there, up question you of do should financial and with still world need happy some you're here is the reducing that other these given cetera, show letting restrictions this quickly world therefore, a but But social was the an the the in a up costs, have is, a authoritative tourists back you amount and data difference And not? et you're significant this, infections the can is you're with on these letting in restrictions I these that as of lot vaccination WHO Some maybe as for U.K., not what's places vaccinated all this take away. parts I've do I the the EU-approved to the If in restrictions the travel test restrictions sources, approval, aware; and of And countries. of Look, vaccinated And Australia, going other hope saw stuff costs, example, vaccination a impact fact probably not places, you comes before I hope, that on lot from to a seen not I those WHO things. the of think lot go going photographs. of possible. be other down are be happy, do on lifted. travel believe


Doug Anmuth comes question JPMorgan. of from next Our

Douglas Anmuth

as And One U.S. Glenn the David. for brand the previous service just the you any approach stronger any financial just Glenn, then here the from talk expanding strategy partnership the and marketing framing customer was just And I and how missed about Majorelle. comments was hoping implications differs years. versus one it, just also elevated David, into I unless in recovery. then, you broader in on could with go for curious landscape

Glenn Fogel

part. I brand the heard So second hear the first a Doug, marketing bit little part but the about didn't I

worst me saw and answer marketing our no And money. going at that you lot pleased the beginning didn't of It's approach general of -- forward I'm the me the saw brand Let again now in with there's coming, but Clearly, what maybe say the And a marketing then with and there. I'm And give pandemic. that the far. pleased brand with seen the to spend we very, back. and the with U.S. we part so our very numbers obviously, coming sub I've reason recovery very we're add-on. what early do

person already the what we're not and for over back best being thing to they that going we doing in which for return what the into time the back and coming And just to we said, business, our direct been more looking think immediate greatest of terms out is we we've do to what return. after always that And continue to so came us dollars. XXXX. That But the get a term, from where marketing normal as that where we building we we're do in is, going the approach are stepping long that. able evaluate measure repeat the do done marketing give seeing what's and transaction going one to did loyalty, being the have changing are look, we

of but perhaps pleased company. little think to it need increase the we we the scientific because and run than build the more franchise long in that's what a to we're for I'm were in the that really value the with I So do past

first The first about? -- the what's you part Doug, asked part,

Douglas Anmuth

I well. strategy think brand you pretty the hit

about part the customer I to and partnership The expansion just wanted financial service second ask implication.

Glenn Fogel

there? still David, Sure.

David Goulden

that. take me let So

this So Booking.com. this with context. into of -- is let's all, first to put do We

And actually we've or handled partners. not our for been you a external by when long our our periods, of may to Booking.com, of service time. period we So contacts XL majority peak customer providers get may working with know that the

example, typically, about had the summer, were for EXLP. contacts last So of handled XX% by CS we

accelerated. more through through, just not Financial in So then the and new. do process, expect much Glenn XXXX. be We're there not It's something bit this close is said, a something little transition still a have as impacts, working period. approvals will

have in the increase Going past more driver really cost ability than about potentially -- is having really forward, the not this. let cost and but XXXX, the about is doing the the driver XXXX It's this to for ability.

low is in-house We Korea troughs the have also so our and periods incredible workers they peak development restricted workload best run because employee an to a experiencing variability are and in-house the group. also in isn't our quite because peaks team very and And experience -- periods. is to from inefficient CS for it's

increases -- the pool flexibility, the volumes. cost bigger factor ramp opportunity lower is of employees and So really our giving as of we our the cost a bigger for benefits potential then form up that some in with comes

Glenn Fogel

service still the into do process, We're having then one other believe the is service that. future goes customer people experts is use our is be a has win-win. service. very changing great we we're by to our company. those better customer. going still operation very in nothing our the something than doing but but to do managerial absolutely add a And the Also, that definitely build that great all best internal service I in actual can of It's big really importance still done it's that. the and build capabilities. the we all technology provide can of things not things to customer policies, it who hope looking would resources, is big The can This thing do to to customer customer with it just the that idea just we the to better we are of a This doing


Our of from Mark Mahaney Evercore. question next

Mark Mahaney

I'm about. to overall questions, what's being And I decade-highs. Two -- not That inflation I've heard ever please. surprising rates the ADR if constant you given right, happened talk I that's X% and highest at that's that's currency guess growth, think maybe

this permanent. think So inflation assuming what are even you I'm about of the year, of is when temporary sustainability that? you terms in Maybe asking or whether

would with your post do what then than assumptions? recovery, it be pre-COVID? Like happen, to And And expect grow David, ADR. actually you to of on did the line, to what biggest you So that? you're top just want I that would grow second what drivers on thoughts thing of running in ability the cause post-COVID your when your I Booking business, the Like to to is, the talk it were happen what when faster the be than XXXX. greatest to ask did you business, -- would are when if about faster the things the grow

David Goulden

Sure, Mark.

those. of both take me Let

growth was so X% right, basically constant country. number. experienced geo growth X% So We for ADR mix, yes, And that same a the versus XXXX. adjusted strong again, actually is currency ADR year, last

a got that than at I I our would the was it possible the to or fact what a going into rates quite ADR it's expectations. underneath factors you remain where higher were. areas more but the mentioned, higher left-oriented, in XXXX. hold prices, than think to in start to season when there demand are mentioned was rates -- continue So at to off basically And just up. the as that, particularly tail they the still got Do bit the higher flexible just supply mentioned strong. we was I be the premium. But relative little obviously, there high were rates is high-demand

on frequently, together. do think it for So And believe pricing, we today that customers, the mean a to high complete us our take drive a that to growth, equation a of more be complete for more payments targeted to provide faster solve We we and number both trip, travel to part 'XX there. into that potential all thinking a that product, expanding basically what's think great think do in to were compared growth increasing loyalty. payments, in ways offering, factors ADR of likely going as the further we of customize I have more We coming more all can the customer is is solving for what us view, can believe there's are customers there to service, geographic a XXXX. better then we a connected from to on more to a our on of We 'XX that for relatively create that we service. terms the adding because of of small as of total better work in growth in offer are us is business, top the accommodation us. alternative solution point we together and of what opportunity our that the accommodations offering benefits They because about fact a growth,


At the I turn would like concluding remarks. to conference his back this Glenn Fogel now for time, to

You proceed. may

Glenn Fogel

you. Thank

our shareholders. very we our as thank XXXX. with employees on year long-term I for We the company. good our It pleased We our a are showed progress. partners, our was and vision to And it continue support volatile and to as always, difficult customers, want and your dedicated you but night. appreciate build Thank


today's everyone you. participating. concludes Thank Thank And for that you, conference.

now You all disconnect. may