Tripadvisor (TRIP) 6 Nov 202020 Q3 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
Shweta Khajuria	RBC Capital Markets
Naved Khan	Truist Securities
James Lee	Mizuho Securities
Lee Horowitz	Evercore ISI
Tom White	D.A. Davidson
Heath Terry	Goldman Sachs
Jed Kelly	Oppenheimer

Call transcript

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Operator

Good morning and welcome to TripAdvisor’s Third 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

[indiscernible]. Thanks, and call. everyone to welcome morning, our Good

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

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

Steve Kaufer

some questions. everyone. Thank we'll our then on and call our call. to you, pass some your the open for remarks you about we the morning Will. quarter for the I'm Ernst summary Good to joining Thank financials going remarks up to call before make

has Both performance improved demand results shareholder each the levels the the quarter improved industry period night, our posted third of year's in midst been quarter as consumer last world. for unprecedented in in last for release our we second throughout revenue that an month and described quarter. and percentages As of what letter versus our

term months, has supporting path slowed, view that In industry's particularly nice near showed the trend. the our uneven. recent QX Our Europe, in a travel will recovery be recovery progress

Fortunately, consumers planned for variety appropriately of to and a partners supporting recovery and have scenarios, committed we throughout. we are

each to travel include is more enabling consumers value based partners, the backdrop. in factors come. meantime, meaningfully deepen world making We deliver remain to health focus to rebound. allow to more focused safety well broad to on we and TripAdvisor a and information efficiently In restore progress maintaining the the engagement, In confident medical communicate faster. drive great prospectively One travelers, safe XXX,XXX years initiative for that with remain that that than recover also the hospitality inside our relationships, position important and our pertinent expanded initiatives passing and we business despite will for to consumer travel challenging confidence businesses, travel developments many We're month, on and QX, customer closer executing them control, our on

products We also very are plan And clients, and months, direct-to-consumer hospitality or delight and travel our and to meaningful and as within new deliver starts to the members. back. recently launched value our two begin premium out subscription signaling by excited few first deliver we rolling new finally, offering them this further for value commitments BXB come dining more to partners, ongoing next opportunity to

we are remains what been while operating accomplish. So, it very a difficult have able undoubtedly environment, to we pleased with

thank a hard time. I during this their workers Ernst, to call the work pass want you for once frontline to I tireless all to Before again extend difficult

to days talent the are call what's to also every and I now, course, necessary dedication. to for employee doing we turn before. Better come want Ernst. will And emerge stronger and Of TripAdvisor each over and thank than their I'll

Ernst Teunissen

reduced That cost quarterly operating like fixed discretionary And In QX last clearly adjusted despite $XX for morning, performance how business flexible our by a variable this over able we year. adjusted expenses we testament fact even cost proactive this rate remain produce its our described to such We million was positive of year's quickly squarely revenue of be year. a to marketing that will included. period. adapted only our new this It's XX% and reduction discretionary cost million EBITDA, more quarter good $XXX Thank on and everyone. first reality. we versus comparable at business minimized model, run generated cost were track XXXX. Steve that positive and and On the to revenue last structure, are in calls, our sharply the savings EBITDA, year third versus have and two our you, efforts I quarter, decreased the fixed levels of

liquidity our of QX. that cost for with benefit capacity call, our COVID We on savings more inevitably had comes market that, travel combined on a the revenue scenarios. the our in And as We financially, conservative credit we that this open excellent new recovery when variety an we'll end just for we of at funding initiatives nearly in now undrawn Steve your our $XXX us With issuance talk and many and efforts put questions. believe about $X the with mentioned, roaring position it million, which will as position up strengthened back. to also prepared of cash bond billion well adequately a keeps us QX, of facility,

Operator

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

open. is line Your

Deepak Mathivanan

Thanks Hey, question. taking for Right. guys. the

Just two quick from ones us.

product? to to participation little with What change back the both more jump side offering? not during color coming your can dynamics Who side? term that know, suppliers for the summer other the does then hotel that and question like? but be supply and You of on You second on hotel during gun, And side on time? on looking consumer program? this business, was you rebounding And you how subscription auction the would in competitive suppliers the travel platform, the know, the months talk saw in a OTAs the are it can on ideal the provide look you the kind as bit demand were XQ? what suppliers the will goals we're about this from First, medium-to-long

Steve Kaufer

Excellent. Hi, Steve. great question. Thanks Deepak. is This

launching So, consumer for subscription meaningful the offering couple to in looking provide a members. premium value additional months, new we're

treated TripAdvisor but delighted a able go by the – as not money, loves a or guest with more So, experience. us able on a you'd We on suppliers they last all to subscription side relationship at get if package, eventually, off to when you're to buying was sell thing. experience. going, of be have that gives experiences. to are travelers plenty traveling, that around only close our to not and we're direct you'll think offering And a subscription looking that hoteliers, globe, in discounts into you Everyone we the the position feel an put all only the and if demand things or thousands, tens present hotel a the count the hotels we on supply, like where the can add relationship they come they in special they with aggregators. special saves are through that them discount traveler When feel how more our be but the about XXX,XXX And to that to are with up attractions more them offering get there's about supplied we wonderful or, our bundle. we to they're a you treated think have

number If users good a experience, we the or feel were you extra – globe. of a look our unique clearly of that better that discount, interested We have and in something. supply at we pre-COVID looking properties that north of plan the the thousands with look times our extra XXX of be would special tens and overall trip. picture, in site attractions when all the aggregators you throughout million And on to the hundreds the have then the perk, relationships side, at them

through Hotels of we auction, opportunities channels. as quite the through kind both pieces all seen as demand for a channels, all premium well OTAs, looking OTAs on we've behavior. the and They're their moving of our on to So question second them in through the looking the are rational marketplace package. connect the By TripAdvisor’s. be to including demand in have

look easiest or recovering. and with Hoteliers [the coming how to and to to need footprint overall So, to is ecosystem and at OTAs of the demand, us recovering travel they're I OTAs travel that whole] in the us. is the option line the it's they're our think coming way course, via

we regional answer. so And to expect, to you regionally add option as in areas. as Ernst, It's we’re essentially – a do and that's behaving those behaving is much same want that? the as anything would

Ernst Teunissen

down, CPCs bidding the the rates auction, terms was in unfolded carefully. as terms significant our of in of volume, partners clearly on I COVID also would April down, it being May, and on add the in auction pressure No, and quite conversion

what CPCs bidding much sort for if booking careful. have we're down obviously conversion call take volume mean the right delivered then. volumes now improved paid have early are of was seeing rates has but the and got days, since as gone so you our to That rates improved and because as is down – time, the the want now. we rates in In in it, have normalized conversion pre-COVID from well COVID think times. I how period was up our per OTAs

pay like before. again And that bookings so willing finding were are we're to our partners for they the

Deepak Mathivanan

Ernst. helpful. very Thanks, That's Thanks, Steve.

Operator

Thank you.

with Deutsche Walmsley Bank. next comes Our from question Lloyd

now line is open. Your

Unidentified Analyst

Hi, thanks.

this Maybe longer-term is option. one for Lloyd. So on question hotel Chris on the

pandemic. business You prior overall mix in the guys de-emphasizing have to been your this

performance is So, little the just this it? and over be that XXXX. to moving be thinking then about towards thinking taking way business? And to on effectively coming really just this focusing a assume to back maybe it for time zero wrong not Or longer-term, bit right would you're market

of internal in coming projections better back were than You talked about out quarter, August. the results

make your help getting just strategy? how a about XX be XQ Thanks. can to if So, your under little to refine talk us bit you belt

Steve Kaufer

first I'll Maybe the [SEC]. the Thanks, one to Chris. take

de-emphasizing remains bringing core that hotel asset, of, travelers. the and will that terms we're solid hotel know option for best core trip always option, the your finding In in capability, to remain a no, no. search I The a value a

you subscription to that know, through launched our because better or and as sort offerings hundreds opportunity that traffic to or users. offering the marketing expect yet and experience added traffic all paid of the remain monetize efforts, we the subscription be that things we've shopping performance the would we other when you the another ways up terms site buying third. such, a that the of will repeat to new would of couple, get this as millions It's a we in organically add channels bring direct-to-consumer side, it to plan, in we already As of get always us we different

and continue performance with And will play so the way option for us probably the with always running, marketing that. the in to in expect we role subscription, it's a that

Ernst Teunissen

I your have the stronger the terms uneven course, our question, remains said last of second we're that QX recovery In limited. we an of now. path. quarter expected. may And visibility, think We was in near-to-medium think we that seeing than right term

our strongly fourth, of did these of third start Our the now the well in fourth European third trends are at And reservation seeing business this The different. business quarter. and some the quarter. the performed very in restaurants we're very quarter,

And so, that all step back lockdowns see we taking now in. we're Europe a the with

all we're, that for with we're the seeing now the the for our in the restaurants trending know, our lockdowns. And business in [fourth] you And careful conservative business in is QX. so from and instance, outlook down QX for right

leisure be part last to the And in recovery. and the fully. to going think will almost We market to skews to market recover exclusively want recovery will we optimistic come so think uneven sometimes of be leisure remain next travel come. that the it's the about fastest. travel. periods travel will TripAdvisor I the of travel the highlight back travel an And bullish We

to ready done QX, everything We're looking the side to in from on that And So, seeing in away And back back. this of patchy. forward we're being a We've medical We've the meantime, is enthusiasm that now we cost out. recovery our doesn't progress rolled [pouring] right significantly. back looking XXXX. hopefully cut point. comes the our travel when we're – market. come vaccine think the looking But prudent to we're market at forward quite it's take that of seeing forward to being of

have place. We funding in the

attractively are are We we And to our that recovers, we think in costs might downs when adjusted and very weather we actually the but position now. right able market not back some we've ups all. because these cost now, add

And so we structure actually market come improved with returns. the we think will when cost out an

that for waiting and the we'll we're be So patchy. meantime, in

on focused and cost been are some we resolved situation the XXXX, our strategy. being we towards the developing tenants meantime, what should on to on to prudent forward Looking exciting new be hasn't focused while

that initiatives QX, real legs, maybe going right out revenue see the comes going going see some QX, see back. to have that in in think the you're I market now rolling when we're could that to we not are not to you're that

And XXXX. so, for correctly we're excited about positioning ourselves

Unidentified Analyst

it. Got the Appreciate color.

Operator

Thank you.

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

is now line Your open.

Shweta Khajuria

thank Great, you.

expecting, update please. engagement, expect Let you they is, put among trend do your that see then Are are the build And in they marketing that any me awareness how so product. engagement try dollars you subscription consumers saw two to members. some the one value you first behind as on ready, product? Maybe that when can subscribe on is, second

quarter? are Did the Thank they So, growth see not through only members you. how improvement, but improvement interacting? you membership or

Steve Kaufer

Shweta. thanks, Excellent,

apply in The look in users So way marketing we that are on the plan/buy to a planning of plan million do is, apply are trip. we already or to at of They site. we are have unique a planning some stage mode. we on need subscription. our terms they They in dollars trip, XXX it do

way here So, brainer, site, the they a simple. subscription on is, are that this present the in proposition no with our opportunity a value really it product becomes while such

the you tours you a you to they other for be there. the that you're this the consumer money can we want the activities a an that to this that is the in to very the at consumer expect that deal. product, going see educate a on that consider that can you're at this on you becomes matters or a Cancun, couple that as is to or sites. on hotel offering then well, that on is is course, great a activities dollars credit at for Cancun, we incremental stay hotel that buy, So to time shop do And any fact free they're continue ready offering stay of And want is spa the easy trip, or examining see and planning that we're that it chance likely when a make be you, us that and special. opportunity trip consumer becomes without, it's can opportunity better the and to than question, hotels. anyways, is a else look meaningful yes, convinced what they to higher-end, at costs upgrade to a around to marketing to sure or get find imagining this actually some something a wanted to your It's you to And a price, will deal a of saves And product instantly saving for hotel a subscription extra brainer, make trip, offering that dining maybe, that them. versus subscription discounts to trip you're doing offer that in that stay a of kind offers savings no on it's

flows lines. view, see course, be experience, might So, meal, to that members To engagement on less about question more exciting hotel, for them logic more they combine renew that outdoors, year of they they type suburban product ability the are the this second members. a whether not way the extra TripAdvisor of course, the on that able a an engaged they a those channels. of that into You you our entire National the that more urban, your the particularly money have of that? Yes, some of the traveler kind out member, remember to seen super for consumer, Park via split that we're the ability on saved average And the enhanced trips the subscription is to more safety, members the know, this that for to the are Everyone, of That's subscription. the like pandemic. aiming for. then year. certainly, experience how on non-member next during come we don't site. with win experiencing because is trip the use And of trip. more special concerned I'm later. ocean as I benefits, upgrade types more do along back of we've as the to And kind course, CRM brought of different to of sure suggest type traveler want when not with behavior the likely take it's of think go member the a they is we

So, but anything that's non-members point particularly suspected, at grow, to versus in to meaningful members can't as different moment. you membership continues I the

Shweta Khajuria

Okay. Steve. Thanks,

Operator

you. Thank

next from Khan Our Naved Truist comes question with Securities.

Your line now is open.

Naved Khan

you maybe? business of the A fourth revenues international. the me, us lockdowns? Can restaurant of being I below performance to between can the a all with of couple How about revenue the about remember the So hotel versus talk Thanks it to non-U.S.? a for maybe U.S. expect we is you outlook state quarter European. questions third should amidst your quarter? modestly segment for U.S., And lot. then, be be one-thirds bit help that thinking two-thirds little be – you kind

Ernst Teunissen

a that is, hi. break minority Yes. a, in seeing business we're have we've now, that where seen into October been trends November. seen more that as moving the our September, the so in it The Europe that it U.S. lockdowns the have were the out, with euro more The holding compared September sort is, we is significant. on too our U.S. is big not side and The right impacted business of the recovery that at in hotel side restaurant hotel is same has levels, instance, of – or on but Naved, don't we there. we introduced up for change to to business well. is seen the from less change and We've much

correct Australia, about almost in statement dining exclusively Europe, your a a in almost almost business, America, bit our and in in Europe. skew to is You're about exclusively Europe. South but TheFork the reservation bit

by at dining majority U.S., that very marketing dining other component services that. it's But lockdowns of the in is it of our is a and also part And component of about the is our that's there is correct the significantly you're so, business, is revenue our of largest which that impacted revenue. sell-through – Europe business-to-business our But and we services the subscription restaurants. the

Naved Khan

That’s if very helpful. A I follow may. up quick

on equates So, that if of say that it, do to savings cost just $XX of the fixed had quarter, you to million, expect around. that but obviously I million in most of around $XXX you when you but not it all obviously, that then return analyze turn did third things

us give had about I if much post] about can you cost XXXX, So in terms sustained be to [guide how some think of of can this savings?

Ernst Teunissen

be when add Yes. back, market will we going that There have are – to costs there some back. to the naturally comes are

Just offices any operating right now. not as we an are example,

efficient. most subscription as targeting other don't all cost. are costs product. out least this We're for is more taking some cost. our we for some us infrastructure Our found we of strategy. comes things we're around this larger initiatives do, back. behind well. reopen, that often market actually back much And add like saying, – have works you inflationary offices when after the There's the have pressure closed. looking this We and of when But on really become cost, invest to matter always offices back, ones as to will are have we much our hey, we strategic our we're more that may come And are And some closed. At the that

So, some comes back have even for specific market the yet believe we’ll but cost. for the I all you I XXXX, if that add didn't back. a back number will add not cost

Naved Khan

Great. Thank you.

Operator

Thank you.

Lee comes from Mizuho James question with next Securities. Our

open. now is line Your

James Lee

up maybe we I be vacation do what fact here. my was Steve, in learn investments their that the more you Thanks anything and your about you They alternative I bundling. pretty anything secondly, will also, going company rentals, more you reputation of board wondering making have segment? like wondering, now, you a with focused for forward see from questions. that shift perspective. And was certainly I from towards merchandising wondering taking mix you right CEO given strategy, know, you think know, Thanks. a can on your was meaningful the TCOM on accommodations specifically? pick

Steve Kaufer

Thanks, James.

alternative are the are – accommodation So of accommodations accommodations to begin our with, key absolutely future. alternative a on part question,

– mix other figuring that if looking augment. you the the if mix We the talk to out OTAs challenge And opportunity, the default. have that the well, or to way alternative you we're reasonable to is the a TripAdvisor footprint almost trick, accommodation into in

that to travelers help because any that part the TripAdvisor don't there the growing brand a as options fully and to mix of great in will opportunity growing these particular well. accommodations it point. we category expect I there is a So think stand teach out for alternative have are our

help to of involves any things to matter experiences, as looking as those that get content trip with accommodation, plan that possible. big fantastic you of make memorable there, helping type inspiring that do, out you delighting are and way helping the We trips travelers

of parts so however, major has same enjoy in interactions be in on same kind for in – businesses, the world addition to bit. To a the does can on for our of perfect accommodation the one right lodging perspective learnings. I – it a China, category operate wouldn't complementary obviously Sun OTAs global know, particular me It disclose not board, we of a I have plays type, our fabulous for it's any Trip.com having other that, tremendous only very much of role you the say company. quite kind very [around us. is alternative the Jane it's so, so the that not but And question I but center] in the the but as the space, can't to many operating in experience the of

James Lee

forward more towards clarification just rentals. going help to correctly, on vacation directly, pushing your accommodation, great. I am opposed your your do do reading the guess [travelers] on strategy that like It sounds to strategy some would Steve? inventory to as more Okay, suppliers planning help sourcing to I traffic

Steve Kaufer

to don't everyone we that sort fair experience. to versus with for we What is Well, supply do the players because bring directly the regardless taking statement a by that better role by in present without organization sourcing compete our it else do trip. to job to inventory in important it's inventory get supply we and building growing plan equation is for travelers feel accommodations or looking supply we order have demand. very with considered number sales necessarily more a it. we comprehensive What a since to play the can our equation just have, on of And system, a of to we augmenting other sourced the reps certainly investing our we alternative travelers that, want an bring

James Lee

thanks. Great,

Operator

you. Thank

Horowitz Lee ISI. from Evercore comes question of next Our

now line open. Your is

Lee Horowitz

the Two, of be cost would a on question. do maybe non-hotel is normalized order it operated the magnitude space I subscription that versus about your the these on helpful? environment, out maybe I'd advertising could, advertising lines? subscription product? And of the needed Thanks you leveraging the how for in of but coming given size think across Ultimately, support can thanks to any business to demand the Great, imagine owned hotel more balance us product, and how if versus savings drive you in subscription the on fixed the that relative paid growth? then, much your investments structure, so much. help revamp hotel, help size of cost businesses you do

Steve Kaufer

Sure. Lee. Thanks,

I a to around some brand drive of want looking have point we members. point, million do the will be subscription north home at offerings. certainly, that So to we build the though XXX really

mode. introduce We day. at a millions to single site a member, trip us, for of right TripAdvisor planning planning they're who have perhaps they in and are These folks the if already have our subscription travelers our are the visiting to been all They travel tens we moment. years. product already of Or every using have know opportunity

how do to be going you order can it's in to the spot subscription and be on, have For big math really work? programs one? acquire already that value spend Ernst, the to the make already to do us, There's hotels, is win, our site. savings much value additional destinations big the are over the you this making And lifetime and success have back and of to if travel. what's in dollars, buy that others’ again, have demand but extra would plenty done, remind if for abandon, we're you the second travelers, we and come have subscription because with that experience, a to a have. think the on different each confident we're business, subscription not back perhaps, leverage to will question, But been question verticals. we in to naturally job at course, value site do finish – through or providing just we transaction. and asset, the discounts, Unlike special want value your time sure some that be improving delight, revolve have they have traffic be start there that the offering. subscription of we're experiences demand the business, others product and been Obviously, our some a cost the consumer seek to around But out will we we that understand your we're worth the of because as consistent would the you is them take path opportunity they're – going on subscription that we're we it's acquisition already these obviously unique were the So, and membership in folks the traveler works, so the of math treatment, day. perks, our product, that offering paid other travel will traffic, that to every programs the – we another spending the us that question And, the up not to them know, content, fees. for upgrades, marketing them helping to you like the certainly credits a a are quite

Ernst Teunissen

question year-over-year in hotel, level the of – and magnitude experiences about of the Lee, and discretionary on on your segment. dining savings more of Yes. terms between as media platform and percentage similar business our the across our fixed segments, and other savings a similar

Lee Horowitz

Great. Thanks much. so

Operator

you. Thank

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

open. line Your is now

Tom White

kind direct OTA relationship an like direct not and with properties you with hoteliers guys, offering, your question. you Great. through or how And, something direct curious and, sort that? for maybe just you you talking a Could i.e., some with, percent so? of on properties of have you more properties of a GDS that big overall you the or monetize on you know, is play what when focus subscription you strategic comment of of were know, there. site, taking Thank about whether hotel, role my for mentioned of if connectivity a guys kind of know, earlier, the maybe kind driving through your Steve, might you that connectivity you how level

Steve Kaufer

Tom. Thanks, Hi.

products your products additional your as on you our reputation, announced BXB couple hospitality two to new in offering, as business saw, of help that insights deliver as solutions So, well we enhance business. a

how of and these grow their So, grow and [chains] evolving are to the the as as tens helping then able view interested relates, obviously in business to product in help a of question subscription the we're constantly their of as direct-to-hoteliers business tremendous many channel being TripAdvisor. that and sort on hoteliers the them of thousands asset value we in deliver unique it product. using the To subscription

season have an and a – or you a extra might might hotelier So, piece part of an that extra behind a members shoulder at of the resort happy an be imagine to can provide experience discounted to pay-gate. perfectly room our if TripAdvisor extra credit, their

very other subscription you the paid rate outlier. can established to hotels. new successful to this a by tends various and But There are think ecosystem, not, many hoteliers there's examples of of of hotels lots do means, line, channel rates choose channels. the plenty [euro] things discounted if packaged parity have across been how there a for and that distribution we're So, rates other the gate for aim behind gate, of in price any overall be or the model, inventing

For subscription the form bringing first this that we're TripAdvisor to of offering. the time, in

and see in what preferred to – hotels access, travelers some those cases, in on learn we interested shall access, we to So are the get TripAdvisor. will offering to

Specifically the have site. have be around connectivity through previous [indiscernible] quite direct would efforts, GDSs, hundreds in interested bit audience will an enable our not booking establishing to of the easy to to capability. that the OTAs, on that It's connectivity, our that have internet we but been that of connectivity or part experience that booking many equation, able be we different a offer direct through engines establish using of hotels through the

Tom White

you. interesting. really Thank Great,

Steve Kaufer

Thanks.

Operator

you. Thank

comes next Goldman Our Sachs. question with Heath from Terry

Your line is now open.

Heath Terry

loyalty the out. are, Great, to attempting pre-pandemic, tend we're thank just certainly you bit deeper mean, we're know, hotels sort enable this through I metasearch obviously other Google models the build but a to Steve, to opportunity, efforts you. you – of even pandemic dig program are and seeing into know, that direct

benefit you direct with, of know, TripAdvisor’s you we to OTA more then, sort with eco-system? and though, to What were behavior pandemic, there shift we're information protocols of extent know, do know, consumer play that of more health to around consumers the a certainly phone about During direct you kind more the towards environment you in longer-term role booking focused you relationships the hotels, And the type of these the that and seeing thing. all you for know, get the sort and, in we're use that, see via know, check-in as TripAdvisor on and the short-term? and, opportunity just try

Steve Kaufer

Heath. Yes. Interesting Thanks, question.

that pretty their quick our I safety. calls, market information with it grew Safe to Travel – initiative we So, were was businesses, advertising in about XX,XXX talking previous think about

up it's to Now, XXX,XXX.

share those that think to safe. the I want received our know the traffic. clicking that has traveler clearly travel on So, to It's information time. what doing with to We fairly percentage is those travelers with about hotels higher all are think hotel getting a obvious benefit of or safety properties keep our are them

can for brought model bookings, in helps of based a additional The offer is who connectivity program, participating And bit have. bookings extremely restaurant respond actually which quite They leverage brings ready] we've in help so them, to with is site, And presenting situation up. that to measure the free. a it perk it's, the reviews, come so, get more, we've for because do direct demand-oriented market to and yet again, providing the win their way. concerns for all makes they a we both bonus ongoing by points – TripAdvisor driving to all that for wants obviously them a bookings earned them ones grow. to from or hoteliers, if that relationships sign [they're of tours We upon think the subscription that hotelier and and we’re it in some to them and on through hotel hoteliers We we offering. to products free information our bookings the our whatever benefit, very that additional hotel let tours the them see making that with a far, our with no-risk When for established such owners. add test customers another we we've more photos, will and of just help is travelers comprehensive to I gets and are offering hoteliers and part are our easy available with the restaurant traveler they kind address successful some information offer registered or in and that the our

Heath Terry

Thank you. that. Appreciate Steve. Great,

Steve Kaufer

Thanks.

Operator

Thank you.

comes with Jed question Oppenheimer. next Kelly from Our

now open. is line Your

Jed Kelly

for Thanks my question. Hey, great. taking

of where patterns, traffic's, [indiscernible] So at traffic good. just some looking your it ahead the obviously, seems are OTAs of your

indicator. seems more You know, it a be of to leading

there know, look As of back, your know, platform is your either to you revenue, more before revenue you ads, control travel destiny about of actually any generate a travels consumers think through coming kind terms traveling? own in potentially revenue, way you could media and, of more products you sort introduce to book to

Steve Kaufer

Yes, Steve, again. don’t It’s I think.

people a seen the of dollars that's, know, think bit product decisions recognize into destination I of start there you've that's the indicators, want than are hotel one get even the bit recognize some risky tourists still the arguably and they to more making midst to when – over, want to organizations the organizations, do you in go? leading this offerings, the in in also heavily our the all that space, be display leaning of but [DMOs] that decision well, marketing attracting leveling of chains. for is for craziness too chain play both the a those available, pandemic that a we The where So are some planning, And to combination geographies of process.

our subscription product, about offer kind to the course, any wanted programs It's that, that we and as super in that all active, very organizations in feel be reasonably demand. I the a very as loyalty is Got demand all talking picks so OTAs away not back thing from have many programs on travel, where the rebound shape force view because for on not believe loyalty We happens, next chains safe the add people the The back because – the no again, even it month, traditional form OTAs that will that be clients those component. or systems. destination were. because and eco-system as will the of strong or Those tend of we're of offer, complimentary necessarily, next sort site to of one up continue. not recovery [indiscernible] obviously We'll other that doubt Tourism offerings, chains chains will to way subscription that to the quarter, we but marketing is pull to we and those. be will be to destinations. meant in looking people critical and programs

And so interesting hotel chains, partners would any doing less advertising terrific to make us. nothing for that be wise instance, for product we're it for

Ernst Teunissen

we would to obviously we underline were last in the ahead terms users, we leading we point year. in had at making, the that I revenue previous on of XX% And way were of which year indicator of September, traffic, unique about compared – you're XX% – is of Jed, the had

even trends. those at we look a site. of depths we We had about our were in still traffic – April, third so, And of the our May, on

seeing engagement when That's are we’re for engagement, even rates platform TripAdvisor continued us. conversion low. the very positive with So,

because may leading It's the rolling out, people logistics there the year would not of pay-per-click, out about point if The is, auction, where our as next indicator more on for need see it where start ending is it's COVID, we which of we vaccine because might a situation another leading is a of there certainty there we other engage and the sort I is get out. just we may area booking a course, into to hotel mostly indicator recovery. see further will start and of

Jed Kelly

Thank you.

Operator

Thank Anmuth with from Instructions] next Doug you. [Operator question comes Our JP Morgan.

Your now open. line is

Unidentified Analyst

give could, the This the And year there? doing opportunity, [indiscernible] could that popping since across us there recently a a on pipeline? things the looking are on BXB are And BXB that down updates it's two, any any morning. is you're product about then, at you that trip.com progressed partnership, had the good for hospitality Do other the unique rolled more bit Okay, has just and you you what interesting you opportunities then, questions. of so broadly out, little I up announced [indiscernible] share taking around some looking partnership. elaborate more been partnership that that or you come to far? have how know, details

Steve Kaufer

Certainly.

it many, It’s very visibility reputations. hotel's reputation stepping So level, which them. a of for products success. you of enables want. In on I absolutely then, they're their to we TripAdvisor, particular client about start [indiscernible]. not. I or It’s many the can properties globe reputation on – subscription for if can free It's a awards. up whether is there's no read critical visibility mean talk recently around pro, TripAdvisor hotelier BXB ton a us a Two I order, and released, proud component, to about the their

you as order]. way your so, they hotels hotels buy [sort in what their to or do kind on And naturally very reputation knows, many, can, everyone try improve the TripAdvisor many can’t of hard because,

to travelers, improve hotel, to the a write reputation the better, just TripAdvisor write we've to guests average And seen the customer is. their hotels correlation between the overall more recommend better TripAdvisor. we that consistent a surprise, their actually experience about ways the of and to get on best the about on then, their no guests that is deliver stunningly experience review of score one their So,

get hotels very nice to have relatively TripAdvisor. Pro some Facebook goes Google request hotel and automate tend helps So, check to helps out the automated, questions, it that extra on forget spot, some be able it insights and their are review also volume the the it importantly, able be them reviews they Reputation and to to bit the write what But that. ranking positive, goes to set which on extra all It know, simple or that to reviews add most But the for that guests so it Again, review guests, you process, a so it's saying. can and into, do they a are the more up, on you can guests. those essentially hoteliers e-mail We TripAdvisor. many want to They ask independently. their reviews TripAdvisor one offering. love

trusted insights hotel product category, insights Second product. helps one another might round expensive because at established what that. deliver is Spotlight. company. with at. – looks we a in this a to but have partnership TripAdvisor it's have into expect now run relatively runs using what other how is globally. really data the It room’s is business, And price your business to It's It’s and a sales your penetration that Well, force technology

their some run extra two with together to and term. very They're products it hoteliers. over whistles, product products. now. and we've build we're the bringing sticky a reputation They're to those We are them helping long partnership their in also and So business market think valuable put bells

helping are form another the interested To sense. in business, be about care special the hoteliers subscription our that's permanent really – offering more So our that filling – degree we look demand in to a hoteliers very but relationships in on hoteliers with side, them something the will in rooms. also some that that

but their yet, and help that so, will grow hoteliers opportunity another be not be, will business. with And them to engage

Ernst Teunissen

grow our outside double-digit year, and growing non-auction our strategy And not of hotel I dining. the auction Last just as a hotel add only to would limited year-over-year. experiences were to products, to reminder, that our BXB is revenue products,

of we these lot to new plans of and introduced so, a growing that products hotel have two part And that are we've that. keep BXB tenants important

here added to in big question… consumer growing business, dining BXB our as your well hotel as media keep these our focus experiences internally well. second our and new So well now as business, as consumer as To – streams

Steve Kaufer

[Indiscernible].

Ernst Teunissen

can together start the Jane do as know, Steve at revenue Very Steve together the doing business You We're working in since China itself, TCOM indeed, we team add. for having that can about of partnership, in joint has benefits was plans, we're you year inked on impacted that and marketplace. we what The about venture. excited I’ll that on joint but board, yes almost as least venture. on working positive what talking the the well. is about China, in a – Obviously, earlier we're our the COVID

joint for Although the that the traffic, and international focus the venture domestic market recovered part very focus, China the quite recovered outbound Chinese nicely, main is traffic the actually, market, has hasn't well. of market

we that future, be terms building but need the because where to happy So, product we team the COVID, track in revenue, of not with hope of on terms of very progress. in the for

Unidentified Analyst

Great. Thanks color. for the

Operator

no call this other the back I will Kaufer. There questions turn now you. to at over time. are Steve Thank

Steve Kaufer

thanks to Thank employees. all TripAdvisor you I my reiterate call. want everyone the just to for joining

an Your dedication inspiration. is

one travelers We'll truly savings living continued stronger demand and get and the our are To TripAdvisor. and come travel of leaner being in signals in values of constantly to enable us have of disciplined we has future believe again, and of will our targeted time to and Time before. back together. investors, company are our pent-up we investment emerge our better than this. balance cost through rebounded consumer We

influential consumers [in strategy plays and TripAdvisor recovery our in executing worldwide short] this this continue and with will partners We role an beyond.

So, thanks and stay safe everyone.

Operator

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

disconnect. now may You

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