Tripadvisor (TRIP) 7 Aug 202020 Q2 Earnings call transcript

Company Profile

Participants

Will Lyons	Vice President-Investor Relations
Steve Kaufer	Chief Executive Officer
Ernst Teunissen	Chief Financial Officer
Deepak Mathivanan	Barclays
Brad Erickson	Needham and Company
Lloyd Walmsley	Deutsche Bank
Naved Khan	Truist
Tom White	D.A. Davidson
Shweta Khajuria	RBC Capital Markets
Jed Kelly	Oppenheimer
Brian Fitzgerald	Wells Fargo
Heath Terry	Goldman Sachs
Dae Lee	JPMorgan
Kevin Kopelman	Cowen and Company
James Lee	Mizuho Securities

Call transcript

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Operator

Good morning and welcome to Tripadvisor’s Second Quarter 2020 Earnings Conference Call.

As a reminder, today’s conference call is being recorded. At this time, I would like to turn the conference call over to Tripadvisor’s Vice President of Investor Relations, Mr. Will Lyons. Please go ahead.

Will Lyons

Catherine. Thanks, and call. everyone to welcome morning, our Good

will earnings Joining our discussed after CFO, is our on of the our our quarter which of market shareholder most website available Kaufer; In and CEO, Steve well financial the this XXXX you measures to IR information, non-GAAP on comparable second Ernst call metrics. Also our measures at on supplemental financial reconciliations we Investor call. includes and me and find letter certain distributed made our will measures today close, filed this release financial non-GAAP located as find site, Teunissen. discussed other ir.tripadvisor.com. GAAP reconciliations as Relations Last financial night, you release, on

circumstances. that disclaims I’d may reflect statements to represent management’s to could pass Before our like call SEC and factors forward-looking August you with forward-looking today, I’ll any filings And or concerning as future Tripadvisor to of events remind for call to information Please with that to X, well as statements this other statements. earnings to actual materially begin, from XXXX. obligation views that the results that, estimates differ these contain refer Steve. the these we cause release our update as

Steve Kaufer

Thank you, the Will and good morning everyone. joining Thank you call. for

last last progressed XX% last period users of in and of unique Monthly period year’s to impacts of we comparable quarter Revenue XX% in pandemic XX% one described May April April. industry. our encouraged from July. shareholder of COVID-XX in year-over-year period persist, that in letter of on and July. was last XX% from last April improved proportion comparable since impact on and the gradually our are our the in business we approximately Tripadvisor results second from but travel year’s year’s comparable having by period As trends saw we posted given Significant is sites to night, on of historic year’s the improving

darkest can So, while take I QX the was remain confident are strengths, our challenging, our a the strong help redoubling the we well leveraging our customers time industry’s we return. preserve in while way, uneven it efforts on may what this slowly have that and future emerge we be executing operations to meantime, control, along side platforms on opportunities streamlining from other of dates, our eventually will pandemic. In emerged to cash, strategic it of to address differentiated and position and

over frontline tireless again, Ernst, Now, and I you local your extend demonstrated medical to pleased or in have to our that to important And period, stores how resilience. serve initiatives everyday our professionals, our thank hard employees, we heroes turn together come to before I during you call working with work want your grocery the your for Ernst? grateful have services. a all this I’m I workers delivery and talent execute both difficult to am our stakeholders. on the

Ernst Teunissen

three took we and are QX, in of solid preserve unprecedented tracking line our and and action cash amortization, everyone. compensation. first, swift stock-based maintain Steve face position. to reference months with you, restructuring, the about not to with uncertainty morning, targeted workforce-related good In this as that Thank as discretionary well I’m we management, related concerted that savings expense during to financial depreciation costs discussed levels these reorganization and and the we I’ll related savings you cost ago. do note consider

was in from cost and and in $XXX discretionary cost, QX were from million workforce-related $XX line revenue came previously QX. million savings this lower expenses specifically compared of million to $XX which variable was roughly measures. due So, our to down with announced

of revenue, and year expected but be lower $XXX workforce again, revenue annualized very to variable these expect will versus of expected Positioning well are as well, marketing in as this XXXX. fixed discretionary as and The entered excess million we costs go savings costs XXXX. lower recovers. this up be year more We driven related spend us reduced will by

as a leaner more executing recovers. and taken, our are travel the now, for believe priorities. highest organization we business returns our are revenue through steps as We and consumer focused demand we’ve the business positioned We and flow pursuing better

we COVID As prolonged cash completed withstand $XXX offering. to our credit offering compliance operations, us is the million long-term with actions covenant even million of and at bond for appropriately facility, in And for June. even we cash positioned had of This prolonged in business has a together capital the streamline close to provided liquidity, our end with $XXX of long-term event ample debt now debt liquidity and scenarios. downturn. capital, We conserve a the believe to raise and July, capitalized

we impacts improve and year-over-year significant – QX we in meaningfully to persist and believe low. We steps pandemic up cautious, declines the ensure as revenue it for will remain questions. your ahead, versus solid as from loss Looking EBITDA With can but emerge financial will remains that in revenues taken expect strategic QX. this to open we well near-term shape. have necessary narrow we that, visibility said, we

Operator

question first Mathivanan Thank you. Deepak [Operator from Barclays. Instructions] comes Our with

open. is line Your

Deepak Mathivanan

you? restaurants, bit in to mix provide towards Can there? different about question. to in you behavior are talk product getting a it question more products that faster Steve, taking early prior Is color Thank driven you. how second faster markets now. compared the are experience? to nations right of traffic for many obviously, you more of guys. user in new a then the function reopen in in the the be Europe one Europe, think the in And early mode and recovery attractions? than different that I many product to still European thanks days, still the reopen it’s do U.S. but was traffic homepage? the States European understand in letter What other that, is you you the mentioned little U.S. is was recovered the engagement What versus can is in and traffic additional Hey, for

Steve Kaufer

Thanks Deepak. questions. the for Sure,

the So, talked focus we’ve site, it’s of a price different of inspiration, home needed overall page, move bit trip, helping – focus from that review people. considered of the to a on all hotel comparison things personality we’re travelers guides, to bit – just little little a message we on or really look, site. We as really do. of about To bit the trip matters a site, a on our the away start to little on the showcasing more a hey,

repeat in flight terms away more and like geographies. immediate that some the small a related are thing on people it’s circumstances see us. overall piece, probably yes, that’s beyond the the rate. type page recovering less trips to is came about And that I markets categories places, we because is centers says So in probably shorter were second a question, obviously, the domestic. from we the things of likely moving uptick to did just and from your towards come more – They COVID so back, are exploring that an to nice the experience shifts much the the all more To social saw more People in clearly designed think urban of our home safety. faster little Category European shifts page better. are that was around the taking much outdoors, that’s distancing towards tend duration, from they’re be U.S., then easier. we beach, away home where and The a than

comfortable that feel travelers’ when this showing will. they they are surveys Our go somewhere can

contracting of in markets the has as much regard. virus So, much so opened are traveling. shining been European feeling up caseload, chance people comfortable the The U.S. because lower, more that is frankly not

put had many locked hard, down opened price the in the rise not on or up in we the the meaningful rebound earlier and as of damper we’re initial states terms a outbreak. damp so while a so travel paying – post cases on now that’s And

different So, you’ll where very emerge. think recovery, on and a mostly caseload no depending hotspots the surprise, geographies, I uneven see

Deepak Mathivanan

Steve. Got it. Thanks,

Operator

you. Thank

Needham Our next Brad with question comes Erickson and Company. from

open. Your line is

Brad Erickson

Hi, thanks.

Just from a couple me.

levels gave July, lagging somewhat. traffic you are revenue declines improving the into to relative the first, that So obviously,

getting is the philosophy fast Just items the to as expect goal right Do medium-term say now or a back the business here about, possible year? talk early as far call that’s for getting next with apart medium – Thanks. meaningfully term. – you curious as or you is just expect of your it, to it to rebound two pretty be second the priorities, into you to about question profitability a thereof? And Just to more then drive siding revenue if is remain going QX. future the narrow gap to think foreseeable in those to or combination as QX when a

Ernst Teunissen

morning. Good Ernst. is This Brad. you, Thank Yes.

which conversion, we of lag are to down ahead traffic actual you Yes, First comfortable and are book. to think identified. see natural, of all, People people travel to that around the revenue investigate sites coming ago is a to is to on start our year back if look waiting you get and that the it. look between about that quite and and indeed. from

these And so But a we I lag traffic two year, leading the is think we will indicator. indicators. will see a – between throughout

us. But XX% and and May his quickly April, fact that since In is while. we’re is close That How is has opening has as coming and in will gap April, that But the difficult for indicator. versus gap remain the anticipating a say revenue leading are remarks. Steve now improvement in July. sign said for XX% good back people year significant improved last to really May, will hey, been a a now

we’re that. So, taking

we’re remarks we travel – more crisis of able stronger direct-to-consumer are in consumers are Tripadvisor streams goes we’re focused to the more and In identified making that in working focused some working We’ve on & the book, surprisingly a ready we’re Experiences prepared Shareholder come to that Dining, terms out have not not we’ve it to we new and away getting of we before some priorities, and but surprisingly there recovery on of where want were highlighted priorities Letter, they on for willing as the when revenue COVID our on serve our is finally on also medium-term we’re the areas, on before. the sure – than experience, we’re One investing, our course, and this side.

focused recovery fully revenue trying team on and we the is to So, near-term opportunities. both capture our that, long-term –

Brad Erickson

Thanks. it. Got

Operator

Thank you.

question with from Deutsche Our next Lloyd Bank. Walmsley comes

Your line is open.

Lloyd Walmsley

the taking for thanks Hi, question.

you of slow what to get are the them can pay you to own kind there worth? or one you traffic also a level, bidding your willing revenue to function being an it’s you monetize trends, to to advertisers can lag are booking you can the traffic if seeing the to of a be, can, the share various come steepen advertisers are extent segment July some using anything gap, the to just up Going recovery back And and even maybe you – again update path seeing on us if do on commercial some anything with kind of engagement curve across of us second back aren’t would it bid is or of segments? give

Steve Kaufer

Lloyd. This Steve; first I’ll one. the Thanks, take is

that So, pandemic it’s pretty people to bookings that partners as everyone on change. cancellation rates the our as the providing we’re would hit, spike, downstream obvious to

if on not of going is where about to a that, dollar clients happen, paying sure to booking fact, top basis, cancel. now if are our and clients now nervous the recovery to is causes whether going CPC cancellation people the a naturally be user – our So, in right are

we fulfilling trends that at yes, the for our side, could auction?” things Yes, the staying question doing or unknown booking what bookings leverage after consumers this We it, I’d on up of in pandemic “Hey, the reservation then that it’s the actually that CPCs, to – as profit we’ve to us clients lag of Instant CPCs auction which confident pay and taking believe where more they’ll to us, fact rational be our the the behavior instance. enabled and to comes of recover. to the back for period back to all be we go want on travelers may, the as even do, and some point in kind CPCs to hesitant April our for they auction you in turned for our want players take do trip, surmise too they to that they the as as own into use been another will in during way back this continue that were that? paid were. it are and get auction To making their see Ernst, step bookings in deliver sub-question So

Ernst Teunissen

Yes.

restaurant or in On opening TheFork the are recovering segment fastest July that is Europe. more us, our reservation ahead business on trends of recovery areas the the wake for in which the the the the the second performed strongly question, level, business, of very in restaurants business,

And relatively strongly – where area, so others. area clearly, right compared performed with that the now. we’re has two is another an rentals, that’s ahead area to,

HM&P So, at segment. And booking and Experiences segment. will & the very obviously, other seen that Dining segment then our parts Dining & our in hotels & will our comes obviously, that’s our hit which recovery good – behind not Dining. in seen of will but the business recovery, that Experiences benefit other has experiences, we’ve also traffic level, TheFork Experiences that segment. that rentals yet hit segment

restaurants a experiences in ahead the of two & of within with So, bit a Experiences recovery track and terms behind. Dining, there’s

Lloyd Walmsley

Okay. Thanks, guys.

Operator

next from with question Naved Khan And Thank Truist. you. comes our

is Your line open.

Naved Khan

questions, Yes. that skewing that does recovery much all recovery. recovery boosting then about the platform? alternative into affect hearing a lot. performance the hotel auction efficiency advertising demand, channels. consumer been How on heavier your your Hi, lodging thanks Expedia, about How it’s Two auctions? and towards we’ve And secondarily, during in a factor does

Steve Kaufer

Naved. Sure. Thanks,

been yes, our of a alternative faster It’s Ernst business. as part overall lodging recover hotels. has than was So saying rentals or smaller to

shift. less share space. So, continue rebound by benefited market the but that on of lodging the absolute course, hotels were are now we will and of the lion’s

question So, part the your I’m – second sorry, question the of was….

Naved Khan

affect, targets auction Just on your change might and that efficiency ad Expedia’s of platform? recovery how on

Steve Kaufer

Yes.

a So, our to pulled they’re that their and OTA what found traffic what that direct in marketing strong we’ve be traffic, all a converts We’ve we’ve spend, have quite them that’s win-win and site. point leisure my in tends never while trip, efficient roadside for. the et auctions. high-quality price so end the at to go consumer that’s desire over to a trip need that them our their for of for Tripadvisor the been talk always I cetera. matters our to next everyone. on a) we been day, out client’s with partners and next to have a of win buying a years. But their seen to clients wanting certainly about more relationships our years hotel We’ve that be major meeting, We than directly of well this to been just we’ve is known understand the for doing higher does business direct – side with been interested

that to an we type traffic the anywhere it’s hard So, have is else, find of pretty auction.

So, play. always tier second chains. most we – platform have the the do we the major and and as lots of OTAs people have OTAs the all do it on Unfortunately, requires third have the to been. of tier We

always responding I COVID and there’s truly auction So, outs and ins change in cancellation but just currently, some dynamics. is healthy there, to and characterize the the

Naved Khan

Steve. question, related a maybe, And

that How offering that we three, Or focused? is should is focused? display advertising about can that hotel to the new it? on auction you into think So, launch

Steve Kaufer

a have sort challenges. meaningful and of business, – where addressing We we’re solutions larger hotel

these on hotels, reach that We’re put the that beds. individual help eyeballs have their have another coming plus grow at heads to business million we for more hoteliers that site, the helping is and and our we provide leveraging reputation truly chains in lodging their the hotel aimed the product traffic them ability are we

forward, hoteliers of these wish we to soon. bundle in product together to we I but a ways. more as as So, you’ll I’d bunch specific, line just of learn and the products help again, in product look And more be it another think move

Naved Khan

you, Thank Steve.

Ernst Teunissen

line, the [ph] we revenue hotel revenue, and X display the not line. core way will it hit report the in

Naved Khan

it. Got Ernst. Thank,

Operator

you. Thank

Tom next Our White Davidson. with comes question D.A. from

line Your is open.

Tom White

my taking for Thanks a Great. for question. one Steve. you, Maybe high level

the hotel a if market curious think we’re kind hotel whether few months impact chains situation just to thing the whether think larger a more of Now of any the curious food Specifically, stronger emerge of pandemic, of have traditional into you going in on this other the chain, side here you will? is one kind on is of kind just monetization you Tripadvisor? top with small the lasting why and follow-up something to relative guys a quick of a that auction, and I position CPA your peers of offering, you on how that impact like then, think that experimenting CPC is And considered does independents the or Thanks. not? chains have on why guys offering, and

Steve Kaufer

there. Thanks, Two good Tom. questions

you that people think of opinion, guess. a is the first at moment, an is trying personal this and are opportunity – When the So the in of growth alternative I time. lot I where just alternative kind rentals it lodging look for at

there in else, of our toward some of little bit is of the a pandemic like to Tripadvisor, grow looking everyone alternative more lodging the the lodging shift is post share and probably an on So kind accelerated pieces, category selection site.

more I bit owner struggling. chains – these number getting we’ve franchise independents, tend through independents, it’s you the whether spoken tough certainly a a or times, versus really the they’re They of independent on on they’re edges. think that’s with tough. true When look demand a a

some And make bit we cycle. Obviously, so, may through a chains the of towards might who balance indes will, the so, the that tilt the and not when not, look chain. could and bit out further the more say it a

is on question Tripadvisor, many where return years. the payment we’ve to go any our much – and lever don’t doesn’t a owners all biggest getting whether To chain-owned different that franchise of to our impact mechanisms inde quality an matter frankly they site auction a more and our to variety or it to in that. the had that’s for of want us, property to the fully CPA, I the growth We business out for As it relates travelers, travelers the see particular serve overall figure

a call People we a we have on pay It for clients on but change and control I in on the shifts the for is can we client’s had the others little to uncertainty accommodate to well. in at where clients certainly us our happens, It that on model auction. doesn’t quarters more the that and as sit fundamentally there it auction uncertain end next but dime exchange like but for that level on our now bidding over a CPA method in click, prefer they auction. CPA, our it accommodated end. the that where flipping for a works as our it can take say traditional has certainly control easing saw month a doesn’t But us. of of and just an we’ve or want cancellation directly client back the expect CPA it’s major CPC perhaps they the bit happy So, is few the times pay placement. and around dime where Tripadvisor’s modestly where will a if Normally to and but is I’d risk for to back CPA CPC. indifferent that up CPC, for major and alternative CPC, now, so works clients move we’re that ago, are over risk

Tom White

you. Thank Great.

Operator

you. Thank

Capital from Khajuria next Markets. question with Our comes Shweta RBC

Your line is open.

Shweta Khajuria

be today your your as come Tripadvisor years from is year, next you. Okay, but on to call not current really will some fruition. it strategic investments of what couple positioned how of a post-COVID, thank Steve, differently view

be ability Tripadvisor’s offerings couple think of product be So from completely years to maybe to will altogether. engage maybe related else the better, a will what users’ post-COVID But content positioned terms today. impactful company’s – or the you or improved company change in Thanks. positioning do most likely is something better of

Steve Kaufer

that for question. Shweta, you, Thank

that our we’re both in We’re a travelers. now Tripadvisor actually investing with bit how also market quite way offering, changing goes but serving our to the right

at So of in or focused. our points of Letter, most kind consumer least sort Shareholder are those outlined we three the

trip, Our our something about industry. the helping and that can travelers matter homepage on changing those complete we’re already, we’re how on in focusing, how One see trips talks Tripadvisor unique much vision you and changing, that’s really plan more again a it

holistically don’t fabulous a vacation. about what’s – going have make the sites or other to You thinking travel

just of with the else we’ve the opportunities it’s community going experiences that the so not it’s So of the those going you’re the try guides, wonderful already it’s the components that the site to just great in opportunity of done for to photos, not on the Tripadvisor content, places you’re destination. a many way for you, be to you’re before really to a to new things to amazing difficult memories, really eat, our find, ton has bring And hotel, certainly to reach. would forums, do, experience flight; going to the because help and is together never ton guide anyone that traveler the

what to share really that considered for are paid that that And offering. that if entry experiences. find of vacation looking most that but that’s as that in I’d “I’ve our of Paris part a experience and Experiences remiss “Oh, touch all you part didn’t you to our again. for, to money might third, shift to on And such going for that from that was What’s hotels, the are we our you category, Dining and Tripadvisor.” in you bringing amazing where trip. aiming do care thing vacation sure, want the segment so, then because story-worthy be an it trip the “Wow, component known – airport that’s we making that. Experiences grow Tripadvisor and trip of our experience Part and that to it did fall transfers I one. is do? sell museum, is compelling to, historically And we memorable. booked on to on some kind together; on that amazing explain because”, over we What memories to return were concepts creating over want So particular, word your we that booked, We in ticket or We & how point make of the that about for friends to comes matters, mouth; direct-to-consumer you’re experience”, love your you as that the of

millions can of them. we’re So, and them, on month of experience, at deliver services even the a and we’ve ourselves, we hundreds of pandemic different in plan and the to two we are the middle our something have partnership. to trip, travelers every we’re thinking products One looking in to other of site offer value was each them trip, an directly product And take a that launched helping a already. get what insurance

And the expert you’re so whole as year opposed And a an in for just to it’s designer. another insurance is of this pretty a one to where trip, offer. something trip position good community

to trip be somebody great talk who it’s Hawaii. likes to I’d who to an the able as do love all on been I’m It’s almost someone themselves. agency a be like product has service. on to an to to a able I say, go there, a – doesn’t going an I’m for – matchmaking So great like, vacation, to service going I’d that to want things and it

we’ve an just it’s help and Letter, large can the magical leveraging travel into You set and certainly more our And product. trips. terms in the But we of first on about two think the is find already to as services offering of them products of with our potentially on site opportunity in have that new the is traffic tapping those site. set the what as audience the Shareholder example, it’s paid shared a direct-to-consumer, services a

out up differ planning and look Folks pandemic, stacking Tripadvisor complete the or say way XXXX available pre-COVID on times? from so the are of vaccines emerging when site trip. really think all what the we a than are our And makes

the more story a One That’s a experience. prominent, on you We’re we’re way, of really have paid integrated we’re this you in perfect worthy, like what’s we’d you It help helping version. and different them at helping to Experiences or several more are Tripadvisor that feels you set form you with it of the the journey. them, insurance more market bring or or that for one more lot merchandising find that surrounding be plan, perfect designers to love trip. trip we’re services trip direct-to-consumer to shape another help stages

Shweta Khajuria

Thank Letter was did That may, either Shareholder subscription DXC? you, on other please could expand helpful. or paid If offerings. in I I Steve. consumer direct the to you read

So, offering forward? subscription do would you monetize How to this going product? plan be a this

Steve Kaufer

Sure.

exact I So, all trips I the insurance we’re $XXX of one. paid that We price, call have and happy offering to didn’t find product, but – course, we mean the a of it, early bit. build for take expand think year you we days, a it’s and you it and coverage We Super find you a contextually kind product. can appropriate, Tripadvisor. that hard great somewhere else. it’s actually where a to on it’s It’s market that forgot

We line is offer consumer a we’re a brand, or travel planning trip a go product, great we time into sort a We’re monetization great you buying call this, is launch getting our the number the but to and not more that designers new type is of again, tap but this you’re our Reco anyways, what at to any indicate through direct-to-consumer. have not our a it insurance product. are of we agents. business them in to And ourselves, with different travel launched COVID trip trying audience In to process through We mechanism site, so but a of our More agency to that’s take. essentially and match matchmaking trip. meaningful fees.

a in So is it’s and will credit match. they’ll The their card, connection. a agent travel at disposal their buy the great put consumer

be but luxury that the to taking when position expertise dollar going bit a to trip, get upfront on something time spend a they’re fee a the when of – want level service. or a in paying they’re to we’re $XXX magical provide go don’t couple to have that people thousand more they again, of lot of and So, should that vacation end to that wonderful know they

or something credit and “Hey, a that further other would exclusive to or can say, You information would $XX programs imagine that $XX Tripadvisor willing could card are you your out for.” valuable offer subscription pay that extrapolate specialized fee a can seats, for. that someone that a there You guides could pull so as get exclusive one-time was have benefits, be consumer other exclusive that

them. self-qualified a is in point exclusive this have trip, other being tremendous having great service site that someone than bigger audience there’s being offer How angle, can we’ve a are take to as make is more who pay couple usually about special. it site that in it we be launched is a any services content of this this category. there there a going much travel – is because interested So our we market. and benefit level end We it’s that delighted actually that products on matters trip would because of discount in angle, can – share there a concierge My to trip are we to the they’re mostly, that to benefit higher now, set angle, – while what this by are for a that

it of we a course, category we launch more as as more. thinking We’re of be and, will sharing

Shweta Khajuria

Steve. Very helpful. you, Thank

Operator

Thank you.

Our Kelly Oppenheimer. with next from Jed question comes

open. is line Your

Jed Kelly

taking the my question. Great, you’re about. thanks direct-to-consumer on offerings Interesting for thinking

them offering? is from like can way, alternative guess, get opportunity through of the – you. think you sort you there what to the of around engaged transaction commissions my the I the mean that the there I platform, about they’ve in And a earned if has tradition follow-up, cite recovery kind Seems do more think travel like how question Vrbos, Airbnbs? direct-to-consumer then been leading agents travel, the a been traditional do just getting with the and Thank on Just you is more you is how your what an about that? accommodation second know providers.

Steve Kaufer

Sure.

still on travel a traveler, the – agent, book big So all traditional question, other from cases. free an first their is your fee to look it’s are on moving market, behalf the they model things of to some commissions a the upfront there completely cases the in in

service, model We’re we matchmaking wants. of We We mechanism, pre-COVID. model. trip really simply or is the fee what reasonably agent do out agnostic another current commission. that, recognized tapping the into a our among is as to we upfront know traveler charge that the on an which revenue The have, hard of piece or whether the figuring whether through designer in this the travel just we’re, doing work our

users site. have the on unique million XXX We a month

well percentage, small better trip and big would those of really to people be much still be going a love by but served to it’s served designer. number a be Some would

wouldn’t So, of of designer best of how the whether by our that’s piece then traveler fee have happen, it is is we’ll going on would trip help be we obviously and why but or going are presenting not, trip to Tripadvisor, but us, supply. commission, amazing the piece through by we can want a a because or that’s trip it’s that of be a The big the recommending designers those making also earned to kind transaction bookable a Tripadvisor, trips requiring to do have to we on they, experiences both finder’s connection. book a there because considered types hotels what designer fabulous

and nice for whether a itinerary, To trip those considered potentially Tripadvisor website independently than to offering Tripadvisor an through who using hand back our drives of bigger is steps on how things same that going It’s it for focusing who agent, again, to an us to rather a or agent offline, person an off way in someone market, them. to capture a then on do-it-yourself portion contacts is booking out the best general building So important all the and travelers. continue all trip. alternative that to the to are important an offered important rentals. was those an on are do and best in category, a think we is restaurants We offered grow our to for as category, of influence will your that category them to that that guide question second on is accommodations terms lose credit case in and on the experiences bookings lose helping which trip,

So, our we will not building be own up supply.

in can will focus say what what vacation alternative relationship is we yet engage on could sure traditional bring do that another to as firms understand add our a better a a presented. established the We by served on be value we for would the looking be in other hotel or to be have best, rental is equation so but space, not rather already with accommodations. or as focused accommodation that and is which an partnering of trying tremendous secret what’s instead you And audience player that magic make sauce help traveler our when

we in as pandemic. therefore, now Tripadvisor in recovering can that expect we’re from more – of how mode we as it So supply demand without are the can business, we growth of it think for of trip leveraging in in best our investing which being be we have and think – have of still as, back a back to and how the category the supply ton

Jed Kelly

Thank you.

Operator

Thank you.

next Our comes Fargo. from Fitzgerald Wells Brian question with

open. Your line is

Brian Fitzgerald

try would and farther, when tend duration expensive Steve, local valid in change propensity versus up spend seeing trips trading think that Generally would trips? accommodations helpful. when you. more a about Like what are ordinarily class? Are guys. term to the home, this coming to or out to closer Anything terms things property travel consumers replacing to durations, travel see with is the back you they the wanted tell shorter on point? less shorter bigger travel international Thanks near versus we could first, of us see consumers you you be in you

Steve Kaufer

shut. Sure. – of couple closer international a I to home, is nuggets. offer just are border the sort of trips can Absolutely

where country.” have some staying my know you travel long-term year-on-year same within international are before. that even that’s the that shorter. am I trend domestic trips, so can’t So, than I seeing general, don’t or take actually countries in a more “Hey, I we’re The trip versus

versus is – spend sorry user average a the there what not year technically versus right look the part ago on trip on – down the a is the could detail but our fingertips, ADRs site be of have so but year-on-year. spend of don’t down my up, and the So, is on looking on they overall is when ago, be not have amount we and technically trip daily dropped that you’re level I’m to to the referring that at ADRs that at traveler rate, stay I but the shorter. year could – stay least

Brian Fitzgerald

they spend same place vacation they they for versus rental inventory you to And willing elasticity, area are a rural to them then, seeing comparison, – last just in are more the that year? spend more on willing year are – price sleeve-for-sleeve are this –

Steve Kaufer

more answer locations vacation to Good surprise the just rentals than do question. booked and in know. I no data previous Again, avoid I a price I point. space we being I cities, don’t seeing give try the but there, don’t that. year. for you can’t point those to an big as rural have on know are people look

Brian Fitzgerald

Yes.

Okay, thank you.

Ernst Teunissen

to to more out, to one that’s could you. before more were point different that speculating be few it is, spending most shift Tripadvisor out. to you trips which are going going play on know at wanted and dependent tough been be it’s they in domestically could And There’s domestically. to a I car that how we flights. But revenue. of is taking by that impact but sort people of just think obvious never to take point wanted out really I One as have indeed, budgets spending did than flight I thing way

made year impacted by trend about is not as our last was impacting revenue particular X% So much. that flights. us We of

people that not I flights it, part the So it’s shift, impacting that is slice piece a of us as fewer of much. taking small pretty

Brian Fitzgerald

Ernst. Thanks, you, Steve. Thank

Operator

you. Thank

comes question next with from Terry Sachs. Heath Our Goldman

Your line is open.

Heath Terry

very Steve, more the their you equally, to on like supplier is not almost much. as other your you plan consumers side, trips. you side, obviously – hotels, that important trip look operators tour to as use you you at thank suppliers the as opportunity to the Great, are on if

you’re are do evolving opportunities their new suppliers, or creating through the see investments are those made? you you to offering you environment As want who directly, more that planning that and areas new any direct offerings to people these technologies, with this trips, your see that anything that to offerings, looking for create deepen those suppliers relationships revenue in new either opportunities with in

Steve Kaufer

thanks. for Yes, Thanks question. the

bookings prominence, products, current reputation, top suite into of to ability sort phone number of of be to business alluded their a indes their leverage of to kind Tripadvisor get to demand-based get as directly help our individual traffic, the targeted quarter, new product pull to the aimed and – on demand to more but only to I hotel individual we are turn to the this them is properties properties to, to compelling the that around. primarily not at As or ability our at looking status subscription of hoteliers placement GMs more of a at the seek sponsor their demand. their with able for able list, – being buy properties URL, also launching to more more think is that offering We advantage pull be – move eyeballs your pretty of

in otherwise to to when financial not is more passing our of those to part best are fruition. OTA looking and of aware and that were good source the our you only in demand to great somewhere the that are I leads some or ability mention we’ll I’d traffic for I a a our they our relationships. plans have see coming success going our a and hoteliers the only, property have because that of dependent our But demand I’ll of property both and remains one we on like site, behalf supply off give incremental high-quality and are – upon could course, site. bend that on if traffic, individual further as between curve it teaser hoteliers the share they’re feel that and are assets the they other, eyeballs highly-qualified quite of interested you ideas us bit on to have call we the We level, closer it, we know at but in None be feel chain level, but meaningful at and

And so offerings more yes, have planned in this we do area.

Heath Terry

position coming partners sort to OTA of less you that more set dependent – a now in? on side or And of is the things, in goal sort of just have more in exiting that and if is hopefully, end revenue this Tripadvisor broader, I now is that of have right result that so the more – mean, curious have a the we’re you stable revenue of diversifying the there – environment streams

Steve Kaufer

more how best reputation assets travelers, view what the a bringing restaurant, we matters. do the how experience like yes, is of unique you It’s all the with is what we serve hotel growth right the do perspective, – in the also traveler I customers our and together essentially with are I right the that’s matching that going to get Tripadvisor the view true. have, and positive say restaurant to having we we as all trip access operators for them them ROI and and the and Yes. supply right the the that therefore, which the and hoteliers just plan opportunities, our experience, from search companies it and to – of number – them. then to for with that aspects, travelers the side, help on way include those is, consolidated those are different helping them

of like, incremental demand is Tripadvisor well the when for well all as benefits think in trip. of we house. place be bringing back, great come to non-auction our but we more it as all the back strategy the other so individual a level course, We – go. as in more matchmaking focus products succeeds the Tripadvisor overall travelers is our that’s regular the that about to one-to-one side happen but which going capability at auction, bidding business. offer, a our to for but And auction the suppliers. measurable and doesn’t streams the much the stretch people more the of Experiences the at auction supply think as to the considered It is say our to both around that by to incremental benefit; we benefit it’s love auction level, providing dominated more OTAs, terms revenue a as for hoteliers

Heath Terry

Steve. you, Thank Great.

Operator

you. Thank

comes question with next Anmuth from Our Doug JPMorgan.

open. line Your is

Dae Lee

is on This the for Thank for Lee Dae you morning. taking questions. Good Doug.

First one for Steve. you

your revenue steps pace come Experiences businesses second in Experiences? your And have to Experiences one once the back out margins, different likely holding at you about And you should base recovery, compared and can think levels the the company to maybe margins varies consumers of introduction look EBITDA BXC out to different supply given of how this then, Just looking you there maintain to And vertical? what think pre-COVID-XX revenue? the supply recovery. we shape leadership that it or position at products is to the business, and your newer ensure then, for since do and different? ample pace term, looking are looking mix like of given How looking revenue segment during recovery then slower of the and the relative of longer- by taking Ernst, mix, BXB

Steve Kaufer

Thanks, Dae. I’ll first the take one.

XXX,XXX was important last types No – have was count the so and different so choices. or products of multiple Jeez, if the you one north our individual product selling of We in Experience base. experiences there’s think about compelling offered, usually

aren’t tours that for. for suppliers to predict in category number provide amazing travelers great. Pompeii, looking instance. that the pandemic, of people going suppliers will we go able that such Unfortunately, some to current choice particular we out, would have the that a our it us private of the that make to are we but provide a unlikely won’t So, be our all it seems That’s through of of

we had. But the of the don’t pain. from surprised many that of – feel impact there’s simply, established no terrible suppliers able It’s be we’ve material backup and if any so already multiple would a the bigger on longer that there is to business, will, end be one for any the it at because the – site, participate day, platform So go activity out player. think business. often had the much of if on is if We experienced is we on there have individual our such a our choices so of ones supply our conversations I’d

demand supply that on think the of I in we’re the fine the So, already terms and addressing site. have travelers our

Ernst Teunissen

which discretionary think On the out fixed is here that back we’ve substantial impactful don’t we year, is, the our of issue point plan revenue I and taken this on a of recovers. the Dae, margin as bringing amount most cost recovery,

to discretionary costs the of we’ve year. by $XXX back is bringing in out only – we’ve We’re that it’s costs end the significant. and so million-plus a year-over-year fixed going small way. taken quantified, of And be and that

back, cost So will leaner structure support as revenue to we have comes a that.

So future. cost it in longer-term think don’t expect any if us is that same not anything that change going within to really to better margin alone – sort XXXX, segments the much. and then meaningful I of to generally, our in revenue in comes was contribution level, back take We of between going give overall margin pieces, be impacted rates variable revenue And way. to sort the other is and

point cost to base the but segment. So, contribution lowering margins happened segments. of same any have has that getting cost about particular lower level. think to to fixed some with you and at It’s not a all across fixed

So, always Really it Experiences too. we course, we’ve out Dining, margins ahead, seen segments. we enjoyed that would to But and look in breakeven invest had high longer-term, if to to benefiting be in target continue in we have all expect more of business. we & years that But profitable that business Hotels sort We become you of around run for – should the longer-term, to that the margins Platform. have Media have & there. then higher continue very

so, said, or & the lot important most But costs. is most So, of I Dining from done you look whole out shift. next longer year fixed we’ve mix that more if longer look out, come profit we thing Experiences as contribution, or expect, to a a as impactful taking near-term

Dae Lee

the for both. Thanks color, Great.

Operator

you. Thank

question next Company. Kevin with Cowen comes from and Our Kopelman

line is open. Your

Kevin Kopelman

of play a color on Could demand and have for efforts in been category follow-up. one Thanks. Most alternatives, color that a in questions out bit but growth did any Tripadvisor? and have your on rental how little thanks asked, more you seeing the kind I Great. lot. my give you on vacation of are just

Steve Kaufer

Thanks, Sure. Kevin.

think – people was the the were fastest bouncing that month related. clear worried most the I did perspective about and distancing, very have as pandemic our that’s are – we That been restaurants the certainly a So, rentals ago, two back categories social go-to. rentals much from

in in environment. more rural rental as stand-alone in or a beach-type stronger home traditional a We’re a setting

but long-term change consumer pretty harbinger terms given again, necessarily of So in behavior. not of predictable a COVID,

this we’re next before, mentioned through overall taking expanding lodging interested through on supply our I as we’re pandemic So have on demand But we into mostly that not a our of lodging alternative immediate, partnership, integrating our more – it. better site. the integrating a in view not outreach particularly year, address is traveler Do direct not job to sort.

of find – great We’re a stay helping many lodging trip to best we’ll to in that – matters travelers. an category important our is alternative taking strategy and part need type years addressing as part a that, for overall it’s this a alternative here we that of broad been recognize of there absolutely it’s their of traditional recognized to hotel that the and lodging just for or and be travelers the plays help our suits

Kevin Kopelman

Thanks, Steve.

Steve Kaufer

welcome. You’re

Operator

Securities. our And comes from question with you. last Lee Thank James Mizuho

line Your is open.

James Lee

understand and Board table help there? us maybe, question. here, your from my I can company can wondering, what was about taking for are you the thanks Trip.com Steve, Yes. joining learn Trip.com CEO can And bring what the and the comment to you what Thanks. implications

Steve Kaufer

Thanks, you James. the for question. Thank

Group. this have couple to and join from year. new Jane Trip.com from Greg Certares members a thrilled Board us We’re of

of of the Greg’s them, global travel agency a and from strategic operating well a Trip.com operational the travel know they sale. secret Certares, their of side and you a in points and – extremely knowledge on perspective OTA different If you travel from experience, with with business industry their operational space. know overall both is as top he bring wealth personal holdings. Obviously, aspects ambitions knows well Jane with an an very in global the interesting his industry as

Jane couldn’t joint Board, on going And forward. kind your up having particular, on our question in of – China. I two in So, these our venture camps on in our happier teamed in be we’ve

our footprint and outbound travel, the extremely really So, focused where the position is Ctrip has the market, mostly Trip.com already tripadvisor.cn strong. brand use content Tripadvisor’s leadership that augment Group on in can to

on excellence, properties Group we to and capabilities, Group the it’s other experts why which – our JV us And to taking to of as operational I to then the point opportunity on we the market, guide upside being of having on we so our and or that had our been That’s think content, offering industry again, Tripadvisor.CN And of pieces Trip.com helping on inventory, did the story. that sale. exposure helping why that’s Board. them love outbound a part China Board the Trip.com pricing bringing great missing as us. this

win-win one with of wonderful opportunities kind on truly, of So those regular a basis. appearing

James Lee

Thank All you. right, great.

Steve Kaufer

Thanks.

Operator

to And there you. questions other to are no for Kaufer like turn back closing Steve the remarks. in I’d it Mr. Thank queue,

Steve Kaufer

Terrific.

So, And the thank globe. call. just my reiterate you all employees all everyone Tripadvisor to for thanks the to joining I want around

I You guys environment, our objectives our are stakeholders of were amazing I’m doing of job. but still you’ve proud strategic an in virtual supporting investors, or all this how this this in come from really together pursuing before. we’re reassure crisis, than to in stronger emerge not to our but To times. working you challenging only time, moment hard that these really recover to want

went Time – my always get travelers the We’ll look time we have approach value. this some pre-COVID Tripadvisor back. We in than earlier, outlined does this. maximizing how and than our it of rebounded come Tripadvisor different of and take comments travel does of I has again, when the times. how look through into pre-COVID As shareholder different – long-term

with Thanks, worldwide and recovery influential and consumers will ensure an We and role partners strategy safe, executing Tripadvisor and everyone beyond. continue in please. this our plays stay

Operator

call. concludes this gentlemen, and you participating. Thank today’s Ladies for conference

great You a day. may Everyone, have now disconnect.

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