BKNG - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Booking Holdings' Second Quarter 2024 Conference Call.

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

safe factors materially cause the 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 Glenn statistical A website, release, copy Investors of together like for with Booking Fogel Holdings' is afternoon, Booking Holdings' now www.bookingholdings.com. And earnings an and press accompanying available introduce Ewout financial supplement, Booking speakers to For Steenbergen. the in I'd section of Holdings' and this gentlemen. ahead, Go

Glenn Fogel

welcome Second Call. you, Quarter to Thank Holdings' Conference Booking and

I'm our end our joined I high combined helped prior EBITDA OpEx growth, to report high Ewout exceeded above for drive quarter The guidance adjusted lower-than-expected our am fixed on expectations end revenue. room proud Steenbergen. the this results and upside that the by second range. of of with CFO, afternoon revenue, nights

As expected, and strength are normalize, our continued the has the with market underlying business. to of pleased we travel

key the our metrics Moving to second quarter. in

increased million both Our X% of of X% year-over-year. $X.X our travelers year-over-year. booked room billion, platforms, XXX Revenue of EBITDA billion across nights an $X.X increase and adjusted

room which compared return second we the window line per growth booking Finally, our In relative saw in program, capital earnings share share negatively adjusted quarter, reduced less which the the strong QX. count helped grew expanded that year-over-year, expectations, impacted first X% to our night average XX% our to with year-over-year. quarter by by

a mild Europe. travel perspective, regional growth moderation in of a From we market observed

Europe. However, we perform market believe continuing relative in well to the to we're

regions, slight and continue in to Looking in in other at improvement high U.S. growth a levels our see growth we Asia the

by by impacted remained seen room QX we May ahead did through be growth from expands in less than growth the that moderate the it has night third we our will a market look to well booking growth stable quarter, more we in as believe where window As July. Europe, as have

that expect our night compared in our quarter Ewout thoughts results will growth details QX. to some in further room will deceleration provide We second quarter. third about result this on and the

term, industry, I in the remain to position business travel over confident execute is initiatives the in our profile more continuing long against remain what on taking long for growth the our We term to the attractive means growth simultaneously and earnings of cost important the which long-term our long-term model. drive strategic efficiency and focused the for competitive actions business. while

successfully include continuing see accommodations operating our We in drive a continue alternative all that These important our X-sided develop fit initiatives planning, while is together merchant our critical connected enhancing our benefits a and offering our trip travelers travel our our believe growing to ongoing to supplier initiatives, advancing and expanding progress to effort deliver partners. We supplier experience growing for addition, at across several Booking.com, benefiting Genius continuing better booking capabilities, AI our to also which partners program. loyalty to marketplace. to

working healthy supply see at a of second year-over-year with growth number quarter to encouraged are in partners Booking.com. We us

of long-term accommodation our profitability which partners of to cycles the products by support and of these economic incremental features properties, on majority contributes competitiveness delivering the are We small independent across and We to believe trusted help sector. travel our and supporting valuable being those smaller partners are and and demand partner that macroeconomic focused and businesses. health a the improving developing

QX than alternative having nights to travelers end believe of choose higher XX% of about QX, on to from. continues Booking.com this booked our more at global X.X offering accommodation At of listings is greater the listings room for alternative benefit Our mix to from available our about last were is alternative listings the accommodation which selection year. increasing platform. contributing We million, accommodation

our and accommodation for enhancements supply alternative both offering We our travelers continue to partners. incremental make to

For even successfully are experience delivering which and to active we travelers a travelers lead on travelers believe travel of at travelers, grow us. focused better our repeat booking to the with At to are with more total and we time, faster Booking.com, planning, rate. choose directly growing book number an will over we frequently continuing

direct we through continues acquired booking are behavior, channel paid the of direct pleased channels. booking to see marketing than grow terms nights In to room that faster

before, to to order to we to in paid able long stated we're our do this as travelers us marketing I've ROIs. attractive important think so remain bring new in proactive at for it's As channels platforms

In actively encouraged are reaching Booking.com our platforms by our a on is that is doing while travelers increase we to media our the to an they on addition, I'm at using. spend team which effort channels further diversify disciplined work the utilize in manner social helps

Our Genius Genius to versus important an role for travelers a with over Genius And percentage users. other We helping that to directly higher to time. more up Booking.com drive meaningfully each loyalty at status. in us see direct higher users program at direct book mix plays level mix steps of choose booking

of X, higher of success nearly tiers which moving levels X So travelers Genius active represent continued and encouraged our and we are the into XX% our now travelers. to see more of

year-over-year rate, driven a overall accommodation direct when Genius frequency bookings. and drove benefits. our addition In is travelers travelers more X booking Genius increase to X booking In primarily QX, our to from in by we to Level a see we benefits compared business. also This with higher XX% higher our

as year benefits car growth Genius triple-digit for other small well with Genius and in for in base discounts However, seeing growth elements off benefits we a and of the of of testing are rental continued travel flights. last

these contribute level to outside tier. combinations traveler's to in a addition travel In bookings verticals benefits, of Genius

partners benefits deliver We our to our will our incremental win-win demand partners, are and travelers. which reason get enhance supplier continue when they supplier one to participate. is to Genius electing enabling our them with that more know to program explore And want more it, Genius opportunities we is a to of loyalty

vision. On the towards more the more at the better travelers easier, steps connected to envisioned we planning, our supplier experience trip, and long-term AI In experience while order personalized this our we value booking continue to make partners. more vision achieve center delivering of easier, and to personal and enjoyable, connected have always take the of travel the technology to trip,

further Our proprietary and our teams for scale, many position platforms. resource We of draw our over technology this using valuable their work from AI-powered along well to extensively with build on us compelling continue as they experience experts AI incorporate into to our data, to time. believe offerings AI years

of percentage to of Another merchant different experience while also across unlocking expand increase merchandise is mix merchant of Booking.com. the which will is is help that year-over-year bring we at points higher gross The offering verticals. the XX% bookings gross foundational total of Booking.com than second of at ability element continue an to Merchant seamless bookings our reached expectations. and elements the XX travel together the capabilities connected in quarter, prior in booking trip a

our EBITDA. dollars small Booking.com's in pleased a of still to generated adjusted contribution that percentage this the offering though through transaction processing merchant margin are total We incremental see was quarter,

higher from the We increased transactions a trip. single-digit or transactions in of us more of These booking high vertical with a and booking providing continue in may booking by trips transactions. growth quarter choose likelihood total believe to book connected XX% a We a can to different represent a that year-over-year second experience, in with percentage see about are Booking.com's by in connected better travelers future. directly the overall change to another

growth are booked In on year-over-year, second component that our driven our trips air by growth in Agoda's business. as as flight tickets well Booking.com's for Flights connected an the flight platform many increased important are quarter, primarily the travelers booking. offering of the of XX% strong

healthy of on to the continue the returning see other rate by these customers customers offered and value flight to vertical of new and services a that customers our encouraged coming platform. Booking.com the through We the are number see

for and to work experience across coming our We years. I our better positive our deliver now well partners call the metrics our turn supply over a future, the are our are about outlook In in we offering will confident travel we to continue remain conclusion, long-term attractive the for we travelers. key our believe in growth our and industry, deliver positioned to CFO, Steenbergen. we Ewout

Ewout Steenbergen

Thank you, Glenn, and good afternoon.

are the quarter GAAP All release. results I the in quarter be will results and year-over-year non-GAAP growth full a our basis. to year. second on provide now results review reconciliation our earnings Information of for for rates and thoughts found our the regarding can third

our to Now results. second let's quarter move

end high grew by Our which guidance room quarter point. the the nights X%, X in second our percentage of exceeded

in the moderate from growth year-over-year nights we the second as expected, quarter. saw of first saw window less expansion we As room the quarter booking

was our at by Europe room growth Looking up quarter, night mid-single in second digits. region, the

mid-teens, up of was high mid-single U.S. digits single was and Asia rest was up up digits. the world

business grow accommodations We continue our to faster than business. our alternative overall

growth percentage our XXXX. XX%, which the alternative global second was room XX% quarter night room our was at For X of of accommodations nights up Booking.com, and mix the quarter second points was from

progress travelers encouraging with continue loyalty and We on strengthening our direct relationships see our in platforms. to increasing

seen in we the channel business through both these of X of XX% increase exclude the mid-XX% mixes room was to quarters, direct range. our coming nights Over in low the the BXB mix year-over-year. We've when the and us was to last total continue range, our

XX%, X quarter Mobile from ad room night mix was the was of percentage up of which XXXX. points our total second about

see direct from of the to that come continue channel. mobile the received bookings majority apps We through significant our

These X at see more of booked loyalty in room nights mix in to of room program we Genius over X. past levels year-over-year higher the X our the the half booked tiers nights travelers and the Genius quarters. For of increase Booking.com, than continue by members a

platforms quarter XX%, of Outside with driven second Booking.com by offerings saw growth continued and line on flight our of in of airline accommodations, our in the the about expectations, booked we Agoda. tickets increased

lower of constant night decline X X FX growth currency of and X% Second room bookings in was in nights negatively than ADR X%, accommodation year-over-year room ADRs. The negative by from points impact about from higher quarter points X% due to was which Asia. mix changes the increased approximately a lower about growth percentage impacted percentage

ADRs constant mix, flat versus currency regional about Excluding XXXX. were

in due night at bookings our versus growth midpoint came gross our the our about of ADRs room was constant currency range accommodation While range, of X% expectation. to growth the lower end high guidance above

impacted recent from were In the addition, our by gross prices in line ticket heard lower negatively with trends have airlines. we flight bookings many

quarter grown X% end have changes Easter would in change the growth XX%. about Revenue expected as timing the of of X point. was $X.X our high XX.X%, X from points which impacted gross revenue percentage revenue Revenue as from X negatively year-over-year, quarter and expanded a and booking growth than exceeded benefit guidance the FX. items, percentage which two a by slightly about higher was than timing in due by was these less billion bookings points Second grew Adjusting we bookings gross of percentage in for a to decelerate window expected. saw percentage

Additionally, as was X.X%, points about expected. Marketing as revenue well was expense highly brand to payments increased of increased second due XXXX, variable associated Marketing of the timing in a expense spend marketing a XX than year-over-year. media the basis spend is than expense, bookings which with percentage higher channels. X% quarter higher as of primarily line social gross

than a was sales of taxes. to last higher gross Second merchant percentage a bookings basis other quarter higher and expenses points due year X.X%, mix as and transaction higher about XX adjusted

Adjusted and these would expenses. X XX%. When timing EBITDA grown was X basis FX. pleased Our net was adjusted We're points of of two up of at fixed expenses Adjusted help largely income of X%, XXXX. from to quarter on leverage second revenue which of very focused XXXX, the and of the due $X.X all and personnel, up growth EBITDA approximately which Adjusted basis, our primarily growth discrete were about our X% adjusted despite GAAP adjusted to share were an Adjusting the by EBITDA, pressure some $XX.XX items: higher in the our above expenses, count income billion the tax EBITDA to of grew higher adjusted more from than items. half on per our was are quarters. Adjusted impact income actions of from for items, billion and Easter across percentage G&A driven XXX taking looking was operating billion was our a carefully first and On margins, impacted a line lower over XX% expectation neutralizes more fixed up IT. in below future percentage second expenses X%, points expectations, of lower-than-expected the expansion EBITDA three average and by have over improve managing in X% fixed the basis versus the half share EPS quarter. for than benefited in points $X.X slower $X.X Easter net shift, we're XXXX. first see margin changes of timing

Now on and cash liquidity to our position.

our capital second to billion ending of return, due balance offset of of cash flow dividends. balance billion versus was ending by quarter first and up Our $XX.X share $X.X repurchases and about $XX.X investments including about quarter, generated in the billion billion of partially quarter free cash $X.X

our quarter. to thoughts Moving for the third

in of booking saw expect second X% third growth quarter to quarter between third the the from deceleration year-over-year the a less expansion be night expect room benefit than X%, window as We and we to we quarter. sequential a

the For be we the expect window to more quarter, similar to year. booking third last

in a in moderation in over from relative last we remained seen the perform months, continue through to the believe to has growth Additionally, of May and Europe couple market well we though we growth market. our stable have Europe mild the July,

room growth gross changes slightly bookings be X% X%, percentage X point due below to expect of negative about between growth to from night third We impact quarter FX. in and

We ADRs bookings a offset slight be expect slightly be year-over-year to and to flight for constant on by growth. benefit down this currency

flight be this due to flight While we bookings, previously less ticket prices. we expect continue than growth lower to believe expected in will

to growth expect X%. We revenue between third and X% quarter be

between and billion, billion $X.XX about quarter range. year-over-year midpoint at third be $X.XX adjusted the about flat the EBITDA expect to of We

grow fees higher and deleverage from and to to expenses than cloud EBITDA adjusted and sales growth software in increased expect due slower We expenses revenues to other cost. from related license IT

also by changes third expect revenue from We negatively X impacted percentage EBITDA growth point FX. quarter and be adjusted in to

adjusting bit lower less prices to outlook to flight our of expectation lower flight mentioned. result growth growth the than in growth a previously we're ticket bookings X%, our the prior for gross In terms our than full year, faster expectation is a which as bookings due of I

While flight the in to we the as at down, we have strong and tickets offerings expect come flight continue for flight year still expand growth Booking.com prices Agoda.

ADRs will constant flat accommodation about to a expect slightly We be basis. down currency on

first guidance, bit in associated expectation For prices. revenue, than based and in gross we which higher bookings payments. with growth more is is half revenue year of our a our the expect revenue for impacted Revenue the now on a flight than outperformance X%, prior decline the much higher ticket than of the to lesser extent from

growth to expect to from FX on topline double in we over continue of growth focus X continue our bringing time. expectation while changes fixed We rates as reducing growth our to percentage point low on down OpEx digits about this rate negative impact

is given growth. We expect in the expectation, adjusted OpEx growth slightly EBITDA and to high which lower prior single our growth grow our for digits, increased revenue than outlook fixed faster

a to EBITDA adjusted expect percentage X margins to bit expand than continue We point. less year-over-year by

expectation EPS Finally, to XX%. we're above growth our increasing adjusted

continue while the remain executing to our long-term our excited through AI. focused connected a innovation we and conclusion, operating for strategic actions like vision greater enhancing trip the offering to against on company. generative be taking expect about for We're drive XXXX leverage. We year initiatives In technology our strong to

the open lines? take And you your will now Operator, with please will that, questions. we

Operator

Instructions] [Operator line from Our comes with first of Mahaney the Evercore. Mark question

Mark Stephen Mahaney

more performance European sounded right, and to have Ewout. there be a market been it but about performance bit, indicates be Why would color -- environment? asking pretty market European the gains. I'm of Glenn just guess, capturing share relatively little travel was slowing if I seems I you slowing that? on a in share that travel your be Any steady, shifts, why may like It conditions, unchanged, sort would your that market market

Glenn Fogel

numbers happy I agree very I'm talked now. Glenn. and the where sitting so you normalization, past it's with Mark, pleased right we're we're about the say. seeing far. what We've with we're in that with

softening Your travel a the question of business overall. of assumed sort

to how about and what talk extent. Let's much

reason control share. the to we I provide we've is Our do give really value the the Whether in a I seen come that I can provide that here, as than economies. run goes goal can people and to or it us a we continue should as to What always to I market can't use And a run right suppliers, going and long how to we distribute down, continue as to gain. And traveler as suppliers. way now. us to can't forward. to is or the continue gain well I as travelers see up to travel demand. long in goes that, can't more control expect long market long we'll the to continue this somebody's the control as

Ewout Steenbergen

Mark, the gave, growth I on been in build in Glenn through that And period steady important July. out quickly also may it's from stable that just answer if quite our point May to the and Europe has actually

but are mild the of stable it So seeing yes, last moderation, been couple relatively has we some months. over

Operator

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

Kevin Kopelman

they're Great. trading that started in a length little other things you rates? Could given and stay like you more not bit And continue might seeing, gain room to be like color how both have to that do of moderation nights seeing? indicators, give on maybe you activity you're going slow, some down any or of to confidence the that slow

Ewout Steenbergen

look not really a if conditions a the of basis. at we're on global Kevin, down market, overall seeing you trade the

really mild the as stable of see previous of very down stay, is U.S., relatively indication one Maybe So trade seen a in of the globally, star picture. some we both terms but in it's have a we otherwise, steady in periods. what the well as to length ratings exception in with

Kevin Kopelman

in dynamics follow-up quarter. of on and Is third spend spend? quick expected the with the terms in deleveraging And of brand the that same ad more social a

Ewout Steenbergen

really deleverage investing like fixed expect you are actually, for Marketing, and to That's and the leverage year expansion in perspective that attractive expanding to If expect continue at that see on the point this direct a we and ROI. can in longer-term for from more we also out, attractive do third we leverage relates OpEx. look spending the that mostly this from media because half channels. SNO social now to the would positive of a some very and see second in a quarter, where -- think to where channel we very also we at incremental we're we call, it's mix. I are to us more, and message benefit

really gaining an we're So our important and to leverage highlight point there. with marketing really to success the respect

Operator

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

Justin Post

hear love really on has about kind growing longer-term tough it's on Europe X%. travel to We how Great. really kind reopening know think growth? do comps? you perspective thinking comp Or the right difficult Glenn, I'd against year. to market X% of your Is depressed a last market, that you're of bookings now

about then you do percentage. those on accommodations, Are do your growth strong an that really, like And featuring there, you more really hotel? website? economics love accommodations? about you How to hear feel really alternative And economics versus increasing of the

Glenn Fogel

And enough this One, lot run, that the people the travel sense calls can many, us. more back so by more influenced just we believe separate a up, a of two travel, about to the get many travel, market. GDP about best Justin, for in general many, that is questions. and couldn't market going over we much long how travel, talk the they wealthy that's that tailwind travel GDP, goes people

about other talk things. And we

we global mean, we want people in mentioned you with aren't or come probably Numbers then going global, much GDP? travel? are X%. of that to of increasing X% to can I You in a up do terms good out What's that of how it way lots can because whatever different the share what's service. neighborhood, some get to additional provide

going in long of there going things together there's that a talked past the that's another the to off-line these be -- it. or And globally, which day. about the the to how to There's intact. then, build influence macro the favor. online, we've All one what we've a growth to be But happen week we totally better volatility, is other blew there's to of a just the continue going run, events service, or are build tailwinds that point course, variations, time, that's to our is been in a long the to trying be quarter going that are events a do algorithm we and for can happen in a

to one we And that alternative a on, number we've building, important it of taking and things for And hard will accommodations about it. working been started I've that from an talked to the is anybody's. build it behind. been years, and We it how business rival we've us build for of us was admitted time

it, had really ago Another head We of of the about business, catching a more building us business, a than few we the and think and talked out in our have call last company start job biggest player months good did bigger. a homes on industry. X/X homes may we've love our we the bigger when it we done I came up.

we the In of that quarter, last we XX faster, said had quarters. last XX grown how

product we doing pleased continue gives given don't it are time, reason, to the it? a with to size with Now, said or how XX% of win by and our that it. I'm build going We're this what reason a I is all business. is person provide don't that just And not to rate, a know. if that out we is I I this growth doing to a know doing things do use earlier, come Mark the

igloo. don't That's back. come I want. an they home, hotel, Now And a they I care get villa uses I care. what the important the care a don't really thing. whether customer a or or or then

making can sure make versus not sure tools and in of profitability they best they it, they and win that need the it's to but run. long what way choose of terms relevant is into talk and In just we'll try what about use the business. don't one that to want. have go we create We're trying great steer other, the really what's That's a relevant. We the they the them. Because

Operator

And your Doug line from JPMorgan. comes next question with the Anmuth of

Douglas Anmuth

just window booking you the into does interpreting the relative of first, about that state half? curious, and back Glenn, the how tightening traveler tell what you're the of the

outlook, curious, you And issues are the couple then impact much as their to in last airlines and contemplating? Any that how over your just from the tech weeks seen of impact we've well?

Glenn Fogel

Sure. Right.

is So we booking thing, keep it getting expanding, expanding, stop, saw interesting bigger. bigger to and and has the expanding window can't right? an at eventually, some you it point mean, and I

reason the was the Why price down why. that of Was to One road. And trying that going done and aren't book people inflation of it now any was expanding can maybe I to was I going things lower I afraid know early data what haven't be up get so locked price wondering don't keep to and to to expensive analyze then it they're maybe was thinking I'll expanding? later. on rates get well, the come more I and increasing, up, because is. wait. Maybe a with

window gets and run, course, quarter, is, out. but window That, the bigger all averages any long it fact in influences gets of particular the The smaller.

thing, right amount we're to So though try right do it What going get the the when about I people like to do very what to book. economies, too that. with much and marketing continue we we're want spending is they another we control can't sure do, worry not the make money the and again, that are careful make that's going I'm ROI, just what of to But decide to and that. right sure conversion,

something It's on throughout read if you it hopefully, tech planning interview lives. about have And horrific tech some Squawk about assume millions disrupts breaks infrastructure That's unfortunate. talking and issues, to when then of and world, the and didn't do. which happen control, that market. I though. Delta, Box happen, the our weather awful will what people that particularly test works, to Things Certainly, and critical a problem hit making turns will but And out horrific significantly. we out. I disrupted your affect there can't this travel, they're and that people's the events millions weather, before an really lawsuit of though CEO's lot. the wasn't supplier they happens travel the happens down know interesting us backups. thing, partners won't was regard you're them In sure again. infrastructure very their are be you it the put how point in event, saw you Hopefully, that but out, is hopefully, much products This lot. a into

very we're that. about pleased So

Operator

Sachs. of Your comes Sheridan line the Eric next from question with Goldman

Eric Sheridan

I two could. Maybe questions, if

this maybe the think price? might First, following up think goods of on in in you the that more sort stability down economy re-acceleration When might a demand, new couple last to out services it footing or finding and has new from of of terms about your time the to to to of there, and suppliers demand return potential be or years, elements and shift in to sort that for a environment. will I'm just do growth? Or a curious demand elements to Glenn. you maybe find of sort broadly the duration pricing think played do you of down come just it's elements have new of level. of perspective and normal a for So

you've you're the approaching driving traffic. do then rejigger direct as see on of broader continue you learnings XX last beyond company some journey more What And the funnel and the in to been of you messages, of sort key way marketing that this marketing terms in of the built the share for evolve months just to in on priorities XXXX? the want terms how to investment the might focus marketing

Glenn Fogel

years question a they where saw to I ago, goods think seem we're value narrow services go course, behavior the your I which, is, trying down to balance So back maybe to we or to, really in helps about good, question change that about a than talking pre-pandemic. people's significantly and they us. of is think question, first the change versus this it is like few generic had what I'm a more think permanent to services, appears more a someone And I

I is I services. ends And as don't you because got this things those proof end, lot generally one up have in people more that of again, on that that And think of money spending people couch. believe, the but you is one up it a home, wealthier, end have I one get

more, happening. that and And You your enjoy see do things, don't keep buying want more to want you as things. wealth increases, to you but we

of some the I want also impact human there being that think Instagram doing, and -- to friends, is friend, things to where now has the used the I that your is you effect we certainly something There's a could -- to show to be effect nature great you're the because this overrun, to, your that Instagram are off parts there. they all and world people think of that never travel certain definitely --

good all business. that's for our So

I one. need a much don't swing, I'm need and up it as know I to how to it's back go, will buy you see big to buy concerned et that homes end though, you flip not And cetera. going That's but with because lower. further don't couches, and going to that we're

just a In of earlier of the I couple I about. repeat point this terms let's made marketing, these. want talk to

see is the things that using happy I'm we social. to us making some in of One -- progress seeing

to just they I ROIs. that. into seeing, We to for and that, work work, for will But like it have many some starting to many, seem now okay, think that problem getting didn't a money doing Putting us years, work. getting more we're continue long good

using but things we talk thing that was we of we shut Another I out, we about thought too it, it really won't that turned and specific, these good And a down. a wasn't. ourselves we we producing they exactly "Well, said, terms I ROI, get what said, into lot saw of benefit go money saw some some we saw really so hurting that last leverage the year won't from not is or our marketing that were. something that. us. And coming we of over that's great." that's in We And that's don't

marketing So about Ewout two anything to there. I'll let say things, and good else

Ewout Steenbergen

to give maybe Eric, another Yes, you perspective.

the here be of of X.X honor. some also, now company. lot a perceptions looking with joy, the of But and at great a the of lot I'm I'm So to of company. months course, pleasure A

mix much our an terms as you really it's of we're have on think business our all low has direct company a the sales the They spend marketing from we're XX% that which we paid our for behind that the I we very paid that. in to around BXC, the is are is there are level the the still in are calls that emphasizing channels, now channels. the changing algorithms. But its very outdated Also paid which about perception a paid changer and dollars science all way impressed how are our company. very The because dynamic diversifying much optimizing dependent really in heard channels, paid time. changing time, is important the the I'm their how out world. lot very being algorithms largely game investing perspective for in my channels a Actually, we the adjusting we're and this

there how -- customers coming the number to to how the of optimal bullet. so a super I us all the the to we time through with get the of about an in is It's paid and I highest is future. Operator, next channels most the new us And edge way really the attractive optimization, ready deal details it's channels the paid in silver impressed most And think with think the that. not the doing gives also are you in that really for question. how company terms ROIs can

Operator

question is from Mizuho. James with next our And Lee

James Lee

here. Two

is First, have would you repeat Glenn, on program. you It seems program your that very allow mixed is high can like And having your program. peers rate differentiated again and how bookings? maybe, loyalty once their of talk of success to about with major loyalty one

us And secondly, gross to booking. if understand revenue on of take advertising, ad give areas as are And opportunity be I Is under noticed or a of what that that your so, to to you're source X.X% of -- at reach? only you maybe help scale looking your advantage expand? to looking monetized seem

Glenn Fogel

Yes.

of to in the Thinking I in loyalty Genius, about I'll is the which direct. that prepared of about the point and And talked it able talk X Level back how they was we talk to Booking.com Level X. let program, frequently users the about Ewout our Booking.com business, about works. X talk Sorry are handle much than our which terms a is I'm ad haven't really talked of in our more that be pleased past, that. That's talked of they XX% answer. about going remarks. really -- and program, the the to numbers travelers Level we great. really bit more players. it about little back opportunity. That half -- but X come just We which Level and come we active our about active more or us gives

one the not about is, it. of the for most And we're paying it part, for great things

the putting benefit But about some now, are a all but thing. more talk We're right at in we great partners ourselves. benefits supplying a it's we also time. experiment are to putting Our almost going

who them It You very We program the they're because It's get to is and win these for they people, come win going like want high of with suppliers travelers, lot level Genius so our demand the need for do are can going them, our get it, gets reason They it that. the flexible. it. think Win win-win-win. high-spending they partners do a it? to gets our doing demand. really It's and incremental partners, with do because those when work people, a aren't why services. it they us. There they our they and demand are and the together use for people them when a demand

provide our for so all whole with use see the it, Genius into And up a the think both and all it happy way, come more way, we of with a we So that part that data have of of lot experimenting all data-driven And right with to doing really we rental a to can way. using comes the of ways scientific and car marketplace. A types in to program of I'm the trip capabilities, AI the vision connected permutations better of fitting a solutions sides benefits differentiate. way now does flights. of travelers the we're it different best

That of to. of little the let Ewout course, some now numbers be happening what advertising gives we And [indiscernible] And really talk is that. driving the a that's we're think in other it there see -- opportunities is then, where indication. bit said, which a about thing I And will I'll I little are great.

Ewout Steenbergen

Booking.com. pointing advertising attractive an of mostly too having annoying. us particularly thank think very are a James, the about fine terms is course, apps in active this something as OpenTable, that and gives as indeed we're a it become many but also more in our income the you can growing to very future. Today, revenues with on is if knows, everyone that and line that KAYAK a app from an mostly use in opportunity traveler revenues app, the interested from this potential advertisement advertising the because you because ultimately is else, But you're Agoda where get quite coming there for of line out line and opportunities,

many the opportunity as But think in business, -- So to overall, with for market. is the future, with you're the we opportunities us the growing because is further drive have just exciting next company the finding not there actually really help that's I to optimal a an to that other point important. are right, growth part

we or alternative or the payments, other faster around U.S. around We geographically is growing have so it AI accommodations we verticals the the and if discussed Asia, generative many many around opportunities to in opportunities. multiple discussed connected grow in trip

definitely, would this the I as same put on So list well.

Operator

of comes question next Stephen UBS. from the line Ju Your with

Stephen Ju

Great. All right.

think basket could single-digit can And talk connected be as a there the values and in mix. impact anything acquisition of lot a presumably remarks this size bookings around XX% up share about the is At you result things. accounting heard you I may more I are how prepared and be because lifetime trip attaching strategy high it what a was customer people up? Glenn, guess percentage So it's of the particular about trips I up, point, moving think go to as I the customer your for a

Glenn Fogel

somebody we going make is satisfied also buys we attract Sure. and things, is terms sense, Well, loyalty. say our is that it's person. but to often. question bought that for And things. we the specifics, more trip, higher for much coming the I spend more be We repeat to people use one should as who science, capabilities obviously. It's of thing. true, is because won't change, going to than all does in confirm also definitely the And customer? rate trip come we use Well, we we we the the direct. people two is give connected with, And a more is use it to do the as see what that they a data, a value And going person come back to connected in customer see what use trip, have up I'll them connected you found, how as bigger

upon. whole who if was are the too just were from it's I've yet, connected trip end connected for that say, the heard frustrating we're be. would customers how is with at convenience handle we easy something makes thing flights, missing The their differentiating what the us, too. everything create and the create have we way the the into have I together customer buy say wanted optimal that fixed. And them which we I the start help different?" they vertical, the trip. that was now to and if with how And opportunities you get who trying "Well, starting want want you, more win-win-win our will we to the what you will hotel it, here. And now, the that all in know day, people is is be connected And about things businesses. one believe great business, again, that I'll really just could And have together the truly and all Again, to with work in build it was to to put it provide to with we we different who the the see being to I there, achieve come reason what service that our it to more then people and would and on in much semi-different factor with past, with else and reason way we're get something talked come come will it people that the the us. because that's the there flights is. at we're benefits of a would flights people because now to and wrong, the decide anything done people all to they way it right one to goes I place, putting also, went And out don't progress of know made person truth I travel GenAI why to opportunities one use with trip partners full coming again, But all

Operator

your with Lee Horowitz Deutsche And from next question comes line the of Bank.

Lee Horowitz

to the of working half seems flexing ADR industry by on expecting seems So to I of the environment guess, extension, the be through your softer modestly can extent a year structure for the and about how pressures. EBITDA travel models the that you in you that, has to become margins? cost Ewout, second adjusted hotel say, your pricing by industry going be think headwind the some way comment bigger forward

Ewout Steenbergen

operating in Lee, so on well point thank are, for particular the area future. we for should because And leverage time, we for much and the asking do that company because scale. in to this really be more looking more at this have question you much we the emphasis the positioned particularly putting

can to capital we able take be the to and as infrastructure of return shareholders. advantage the benefiting that. have take as more fixed in EBITDA company in volume new that well margins our also we that same initiatives advantage And future of in and that way as, should growth we of much So reinvest course, a the of over run

at a So let what moment. couple we me are doing give of you examples this

already have We some done of reorganizations couple businesses. of our in a

very head some in count a We in head looking carefully put count, have at place. pause places, been

real and at in brands We at expense are other some in looking procurement and many some benchmarking estate looking businesses, areas. other

also a of definitely, are details. has So over give that next pleased that, outlook can the digits. more area. you more come But low fixed couple now on I OpEx really that the we quarters big the this from that respect with double you to we for to can guidance, say therefore, And now become mid-teens focus we to reducing are to low year to full

well at continue growth focus As in our we growing on to than XXXX. as fixed topline level the OpEx lower a

Lee Horowitz

point alternative are of share accommodations, you Really maybe parity supply accelerate peers U.S. continue investing where in helpful. feel here. And Do sort to on deliver can vertical aggressively more reaching against like of you then, growth the relative perhaps a marketing Glenn, specifically, your to lean in gains? you healthy within you very and supply to discounting this

Glenn Fogel

a incredible level don't our believe anywhere an are of as terms still is But to not at do near but that, number, as we the at in are right me, well The have to that fact number are overall we now. performing I that have all we opportunity. I we It's done admit, the where we upside yet. be not accommodations huge a of competitive won't U.S. an come. disappointment me the product. well, amounts opportunity still it's on or this in of to money home subpar we spending is, have to that all be is type to fully And

going We're fear. that. to to not So not do

it money instead the product, want need, that do properties sure to we're to running the we we the and to want make the up spending be. going get way get What way now we things to we're we the spend the

site it looking who because people for York is now. wasn't the all area, feels X. use New disappointed in I world, as in right to opportunity. live time working doing is, a what that parts I great U.S. you good ever you job something that our -- this New numbers as me, area. the the That's we're And if for were example the know live York Clearly, on many show of because we're comes but to and nobody good So the the in

the are this home in wanted you to If came summer, site. looking our for a a you you rental, Hamptons

better yet. for trust an not there's correct. we're compared summer there Booking on us don't I some "Jesus, want to be. the come. said, and here not to I that We're want way good is your have to that it that, that get if as I work us. answer probably for be to us, not and a You rental. But I other many, to want people." is want more, that's to easier to them to a going And coming for opportunity lot

Operator

from comes the Your of line Colantuoni John Jefferies. with next question

John Colantuoni

this mid-XX% the mix from if were general, You -- is BXB, which low last implies mentioned in your In in imagine XX%, strategic correctly. smaller but curious your direct BXB less why year, of the but excited think general BXB I'm total was to decision, some a competitor. excluding I decreased a BXB about offering players relative the and to bookings And I'm relative the opportunity biggest you're space? other I of math in the doing

Ewout Steenbergen

we we as math. growth our business are that BXB of recognizing not encouraged by really And really the John, well. actually, are

Rocket in are space. Booking.com players market. and and that in propositions You're in is right Travel with Agoda that have that propositions than couple of our active of a some overall, other our brands are have it's the in other industry, active Priceline we but many really this strong, all a with actually we space. the smaller Getaroom, business

something of our part an is definitely is players. commercial bit than is strategy, a So it important other smaller it that but

John Colantuoni

alternative maybe accommodations. second Great. And on a one

intensity the in a sort just about of continue you and the continues have broadly time? to environment marketing think positions appears offering space ramp the that over growth vertical to positioning year-to-date. speaking, if to and Booking's escalated Talk impressive bit in I alternative delivering how competitive

Ewout Steenbergen

is our and I accommodations John, platform. on our same both respect putting alternative think because unique are alternative actually, to we proposition traditional with accommodations

outcome. best and up bedrooms, that they're booking an pick the the hotel giving their looking brand same together X very option. by market and all happy select and the X Maybe they're coming to and family have traveler coming of for opportunity our on for our we paid with all platform and in So benefit their apartment ending with marketing spend spend, rooms an

we this. agnostic this As about which we because are to opportunities them, proposition is all making differentiator of are option important able this direction how actually ultimately, as attractive a on have about is, But that together are earlier, customers in supply all most is it perspective, our from our sure the travel. company. about We're an said the is bring those perspective platforms a it Glenn for And we taking from agnostic market. best the they to economics finding because

Operator

Your next Securities. B. of question comes with Khan from the line Riley Naved

Naved Khan

by was picked like is if second it the online I I'm up little not have seems last a U.S. case? question lodging or that It the if the quarter. on versus bit growth. is the wondering window it on you're alternative with you booking talk versus Can and seeing commentary about of that just Maybe it. And kind expanding mix domestic any have if might just your anything bookings on maybe as in do not much. if cross-border this to driven

Glenn Fogel

first quarter that saw second talk little first take then the you don't why in one, about I'll and the U.S. increase the we Ewout, a versus quarter. and bit the

Ewout Steenbergen

minutes will actually the traveler recognize point, It books us. because way the we ago, the it commented time. of Glenn they how doesn't revenues they actually Naved, matter the at in and window And booking will point travel, matter we to they When a the company. at have economics as experience. that travel to some on certain when a extent, look couple for is, doesn't a at

our look what this really same ultimately performance the or the you If later, out. or or any later bookers time all in quarters, if other we our trip business over if to time is a time, trip. it's locking continue It build the depend So at earlier or us matter and and on certain the deliver perspective, shareholders of at flights for averaging from can over accommodations earlier factors. important same that out, can on locking in to over long-term the looks assumptions do for averaging it multiple certain and the for why opportunities depend it many pricing But will will and bookers come booked factors have. because we medium- might business with results or over investor doesn't us same is

Glenn Fogel

doing better the we've long X, I'm by when opportunities, talked a got and business. provide that trying really to them they stay did incremental is of from very better they U.S. I good need to homes pleased and about to provide did provide it's going run. But and a provide to need, it the the part to did we in hotels do to because homes. we regards trying distinguish, first hotels to In all they second our have Z. the I'm not in the that. need over That's we good, the in for this every it. or accelerated Y partner traveler say better be very That We're happy little U.S. quarter got demand away a try bit. end, business. or I the We single and the the with we quarter, what Absolutely, means -- with to In because or different whenever. But well versus I'm

we're want transportation. make hang sure the we making all holiday a on do goes to trip, we that addition, to of And have sure to terms as we inventory to the In say, getting in nobody can the ground stuff. They always out accommodation. I in connected got flights,

see well prepared in when want, together trip. right All attraction that some the it do the ultimate the make of Glad course, to want it convenience. It about a right in of provides seeing that long experience numbers, opportunities working there's insurance our the Glad did a thing, pleased is for got up to the we tying that. I'd and working person lot for they in do makes we're that to provide it our put run. increase all we and provide our we other the up. easier we platform, the our partners. of better America, the continuing supplier to very providing they remarks get to even So in time. great having all the more it things to to like And which merchant better the Glad things, the because offers connected together sure and that putting in go at we're traveler in things better which a

great I a think America, is opportunity. the U.S.

under for to index there, continue We do means we which that's me, place a better. that can

Operator

much. will session. that, with the you to Fogel over I And was concludes you, This question. hand Mr. our last Yes. call back so Q&A for Thank closing That the remarks.

Glenn Fogel

Thank you.

want thank on build as So support greatly our our everyone's company. dedicated to partners, vision customers, very Thank continue our you I good much, we the and to appreciate We for our employees, long-term shareholders. night. our

Operator

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

You may now disconnect.

Booking (BKNG) 1 Aug 242024 Q2 Earnings call transcript