Booking (BKNG) 2 May 242024 Q1 Earnings call transcript

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conference Call. Booking Holdings would like to remind everyone that this call may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guaranteed of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.

Therefore, actual results may differ materially from those expressed, implied and forecasted in any such forward-looking statements. or fact similar forward-looking are goals other reflecting statements. future historical than intended of expectations expressions and something Expressions to identify

Exchange actual the end statements, well most please For cause to release the Commission. from factors as of statements refer Securities Booking described results at recent Holdings' harbor Holdings' press the those forward-looking a Holdings' materially the to filings as the that in and Booking safe with differ of list Booking could earnings

law, of by no otherwise. to of Section future in required accompanying Holdings' undertakes Unless Booking whether website, and Holdings' an obligation Booking with Booking or financial update available Holdings the statements, earnings statistical forward-looking for as events together is www.bookingholdings.com. press A of Investors publicly new any copy a release, result information, supplement,

like afternoon. this gentlemen. I'd speakers now Go Glenn Fogel to introduce Holdings ahead, Ewout Steenbergen. Booking for And and

Holdings' by I I'm welcome Call. First Thank Conference to to pleased XXXX. am CFO, you, our start report a Booking and to Quarter strong afternoon Ewout this joined Steenbergen.

platforms Our our room X% nearly million first our the and nights XXX year-over-year. which across grew booked expectations quarter, travelers exceeded in

and revenue EBITDA our increased billion $X.X quarter XX% EBITDA expectations. and grew quarter million first First about of were $XXX XX% year-over-year, revenue of Both of year-over-year. adjusted adjusted ahead

average which our profit by adjusted well earnings reduced Finally, first per count as return share quarter quarter versus grew levels the as improved program, year. strong in year-over-year, helped by first XX% last the our X% capital share

summer and books the is books place expected are of including bookings. on see of a leisure demand, growth healthy a percentage for during travel that's today what in cancelable high although to the modest bookings global percentage scheduled to summer the continue season, total these take on represents resiliency our peak We travel travel

quarter, As the from to growth Easter shift year timing. in we the ahead compared night to will look room second last benefit

expansion this and We less room versus situation details window results second an by first some this East. be in in and QX. the that result will expect of we thoughts increased will believe quarter. the impact will offset our quarter about growth a on Ewout Middle the our provide further However, geopolitical the night deceleration from booking in

in have Over few strategic towards genius bit loyalty quite our a the but last deliver and while expanding be connected years, for seem like our may a fit to priorities, ongoing effort enhancing partners. we emphasize, and our Booking.com, AI all merchant talked at trip better I'd efforts, to much include planning, together These supplier key benefiting to offering our about our vision, our building initiatives our distinct capabilities booking also travelers they which developing actually program. our experience traveling

of which booking for time. of a to directly experiencing at speaks they growth in in planning, encouraging have to the when experiencing book active more encouraging customers total proof and We with Booking.com travelers, much we early believe over progress face travelers us. and creating a better while making as with number solving and repeat grown frequently travelers see are higher By loyalty resulting will again we the points to the in trip, choose book us, increased more we our experience challenges travelers

booked of than grow pleased nights channel On direct are we faster addition, that as well In we increases an are per trips as are nights number channels. to see the directly traveler our seeing room through continues us. paid room marketing booked with acquired the mix direct average in of to increasing booking mix,

attractive proof We trip at around further our platforms, for vision we to so so these improve ROIs. new help us our will in to loyalty, travelers it's proactive positive of our travelers important order towards marketing gradually continuing to bring While do connected think drive becoming experience we business points see believe we're booking channels in a to time, paid remain our channels by to proportion to these long the frequency advancing smaller for able direct as over behavior. and

that though to connected to encouraged see increased last of I'm another small a in over is base. travel off this just to in a by growth strong important note the year-over-year different in from trip. are first transactions connected vertical These growth that booking transactions year's XX% quarter, it's

and in higher experience choose value percentage by It's us and travelers likelihood believe single-digit more our travelers, a directly to more future. transactions book great better have with of providing transactions to more to and of Booking.com's Connected those choosing booking the book us overall represented to of we see QX. high trips may in a transactions, a total connected they with

FLYHT XX% air increased is transaction our tickets of of primarily on component by flight many booked is booked quarter, the frequently the connected Booking.com's a our in And platforms the of are year-over-year, travelers accommodations. growth most In booking. of vertical important an first outside it driven trips offering. the

Booking.com better choose We because are competition and better vertical customers providing value, business friction, a of these number less through pleased in Winning more is customers see our the returning way continue base the service, is other of to see and rate a to are broader do customers never flight to to likely industry, and of building we that encouraged services platform. level travelers' are it, high see customer we the the new customer our value that healthy great a that to us. on easy a of by by in but selection the

Outside choose rental increase expand to will to travelers are ability We attractions, value destination more travelers while use strong to continue that of we we in-destination a in us services that experience the And the of who looking and believe time, cars growth something part are seeing believe for the over in enhance we app for do. connected bookings and like from has the vertical provide with and future. attraction transaction. traveler the are engagement and attractions accommodations, flights to

Bringing verticals at we travel is across together in ability all Booking.com been capability several over of building elements of these merchandise last years. the experience seamless booking a and the of a unlocking have

In element and merchant trip travelers addition our to benefits other partners. our to to vision, brings our connected offering being a foundational many

the costs our reduces from liability agency rates provide pay believe model. ability we of we enables to over different versus partners, merchandising travelers, the in fraud opportunities supplier our can our take payment as our provide many incentives For other to discounts, partners. we time, services us part we lower And cancellation help and methods, offer for to merchant offering and the for can we partners

achieve positioned with and AI trip, have believe extensively experience connected from AI for we have leverage experience technology easier given personalized to teams central many years. and AI are the using well gained valuable technology we a more order built We strong this we to In playing experts role. the envisioned always of

that fine-tune In to help large and AI-powered models have proprietary train AI used scale we the addition, required can and case resources to models data be or have specific use build offerings.

discussed Kayak's work AI and in our features have AI-powered before, offerings teams into travel trip including to recent price-wise generative AI ways, tools. integrate Penny assistant AI generative hard we As and innovative named continue of planner, Booking.com's release to generative our

to with from enhance traveler continue We will time. interactions and our these over tools learn offerings

time believe will our advancements. When critical believe tools customers an and we faster. provide believe to document OTA self-serve to live access by enhanced we be a we by per travelers need is to enter which leverage and the live service, In which that customer AI us addition, technology exploring each improve and still of reduce the transaction generative AI speak experience. brands we it partners is efficiency easier improve making with improve rates our area conversations. questions information function and to that both agent, cost our meaningfully service this are customer traveler At our will we agent customer contact will to lower sum, a believe to In will AI enable agent technology over live ways

as role over that our Booking.com expect we in offer, an able Genius of our Our of Genius benefits important loyalty multiple travel program, experience increasingly travelers the be the each travel also verticals in to time. plays will we elements of

travel in genius a contribute to level traveler's verticals accommodations of bookings addition, In will tier. outside

an the program test our adopt rental to of Genius choosing supplier begun number attractions. flights just have the encouraging partners and to car have in We program, seen and we

see a overall We X-year see rate are X which period, in genius moving for travelers in than tiers a We the Level and Level success and frequency and Genius higher seeing and more into respectively. X of from what of of business. including bookings X booking travelers, XX higher higher X our our direct behavior encouraging require we our X, Level

a to to We onboard offering independent on of We and to are partners built world. be marketplace, of of from more supplier more more discussing our we health our the millions accommodation around Genius sector. enhance supplier of on majority our alternative types and believe will success explore accommodation available participate. alternative businesses. deliver are Booking.com, choose listings electing and beneficial partners and continue benefits improving economic strive What to platform. for with small about customers, business to a long-term platform that program to profitability X-sided to our continue the to us. businesses having other small been all we mostly supplier our smaller at is And travelers to we The our with more opportunities operate and on our We for are travelers benefiting loyalty our we important trusted our balanced independent equally partners a and The contributes hotels, partner and our of partnership partners from. mutually which valuable through of traveler our competitiveness have our accommodations the

QX, QX year. accommodation XX% At million, our about global higher is were $X.X than the alternative which end about listings of last

travelers, further the We on supply build this and particularly the our in product continuing to are for focused partners progress by improving U.S. on

continued travel results demand. of In encouraged am long-term the leisure conclusion, the first strong resilience by quarter I and

partners outlook remain growth for our better attractive are travelers. the to metrics well for We deliver about travel future, years. positive our We deliver our work and to in across continue industry, our we in key positioned a our coming long-term confident we are and our the we believe offering experience and supply

call Ewout the to CFO, turn now will Steenbergen. I our over

earnings I'm role team. work afternoon. the Holdings good supplier of to to now and and our for and provide David to our GAAP and partners. our the quarter. look Holdings the join regarding year-over-year help investors, found in basis. a on quarter his Investor release. are success Booking earnings the of reconciliation the remarks results after Glenn, post traveler our second for future the with I review rates results We'll continuing and results you can excited Relations conclusion very to leadership customers Booking our forward will be growth continued employees, team you, first I on to the to Information non-GAAP rest thoughts for drive Thank new All call. the website of prepared

results. Now let's move the to quarter first

high expected. in first a the than as about well extension from higher-than-expected the continued Our of growth guidance percentage quarter the and room X%, as healthy by negative in night end driven nights grew exceeded performance underlying better-than-expected of room less East our demand window a which The in Middle the of points. war by the was Europe impact with X booking

up U.S. by high digits. Looking and the quarter, first up at growth and our mid-teens. In rest were Europe room low Asia the single was up the of single was digits region. world night

in relationships We with the continued are our the making we strengthening by travelers. are progress encouraged direct

our in year-over-year X experience our our forward, believe connected And including direct through quarters. our both range. We're the going benefit range, will for increase on trip from was increase focused when to room of continuing last efforts each the to coming which in we building channel mixes vision. we mid-XX% seen exclude the travelers, X have mix low to BXB the those improve these mix our nights direct total towards our the quarters, business in was Over us we of the XX%

compared direct. are direct by P&L the the reducing of while to marketing receive our driving direct apps a favorable marketing on see growth Increasing when In efficiency in bookings spend behavior of to consumers mobile our our mobile percentage we mobile from channels. our of direct resource repeat through or higher our desktop apps, significant bookings bookings continue majority of we mix benefits as paid bookings booking And mix

The XXXX. of quarter opportunities points directly mobile mobile us of consumers. was the first quarter, more first the with also allow In about app higher apps than engage to X XX% makes percentage

places of to a We our and to broad nights stay being continue in are our accommodation increasing booked properties. travelers an of alternative offer mix selection seeing room

the at first of up nights accommodations Booking.com, in XX% of versus of our XX%, growth XXXX. global quarter was room quarter XX% night For alternative was and room mix first optimization our which alternative the

booked we quarter Outside airline of growth continued the the first Booking.com's on saw accommodations, our in by of tickets increased flight driven platforms offering. XX%,

about increased higher night an bookings due FX was X% plus growth point impact immaterial on bookings room than expectations. a growth from positive in exceeded in XX% points gross to quarter accommodation bookings, XX%, First impact increase on our bookings gross percentage growth was about approximately unrounded X our X% The of higher flight rate. ADRs X basis from an the which changes

Asia. impacted negatively by mix growth higher due regional ADR from of Our to a mix nights room was

we X we hotel star the booked consumers the in of trading or that were regional rating being stay in up changes a have comments levels not that Excluding of ADRs have made change seen to percentage in points. are past, Similar indicate the could mix mix, length about down.

to continue these dynamics We watch closely.

to for also XXXX, bookings take last gross of window due exceeded versus Easter on easier timing was call. the expectations, improved XX.X% first first as as year-on-year of a the XX% booking year, our billion as quarter $X.X shift year-over-year. earnings as mentioned well Revenue in first Revenue increasing changes percentage compare to of due mostly the our the and XXXX quarter the rate quarter

ROIs was percentage XX efficiency year-over-year. is points X.X%, basis gross to of line higher helped first quarter expense, paid efforts direct year-over-year, X% than in marketing of a to lower and highly as higher mix improve Marketing our the about expense expense our due Performance bookings ROIs which marketing our of channels a increased spend. business. ongoing XXXX of a variable the increased by Marketing

higher X.X%, bookings large points part quarter as was gross a other last sales merchant XX expenses about to and than First percentage basis higher of a in due year, mix.

and on leverage fixed We expense. are expenses which G&A fully adjusted on from in invest primarily expenses more lower recognize this focused business, Our up that growth driving XX%, elevated we were fixed our our due below expectation basis operating the expense is an was fixed stronger-than-expected targeting up as but to points XX%, better-than-expected was more much OpEx XX from driven EBITDA the EBITDA bookings of as million shift timing. in in lower well as our a level Easter of percentage efficiency. XXXX. largely approximately marketing Adjusted about by above Adjusted benefit was growth $XXX expectations, including

lowest Note that EPS resulted up we income quarter net year. was which expect $XXX the million adjusted over first $XX.XX quarter share, will be for in of our XX%. per EBITDA seasonally Adjusted the of

the the we of was the had $XXX On average income quarter Our quarter net first in basis, XXXX. in share count million below X% a quarter. GAAP of first

cash and Now position. our to on liquidity

quarter Our in was free the cash of first and ending our $X.X first by flow billion in the $X repurchases $X.X tax and in cash quarter billion balance we share balance debt generated including of fourth quarter ending well investments in additional $XX.X partially $XX.X due to the capital obligations. up the billion, issuance dividend quarter, repurchases versus $XXX initiated first and the as offset quarter. satisfy in This billion as million the to in withholding employee was share billion return,

to on the quarter. our second Now thoughts for

quarter as expansion X%, growth window. to the first deceleration the benefited the from more We expect of night quarter room be and booking between year-over-year a second from X% quarter first the

year quarter. We the closer the to expect second to the window booking be prior in

than the the was the war Middle quarter. first we from less impact East in the expected ongoing negative Additionally, in

situation the in impact in However, second April. we quarter negative expect given geopolitical the a more

and Adjusting versus growth being with this a points Easter, about benefited of rate growth range. by was that was night room end of March of year. room in the last end line high that Easter year couple April from April high the range above night April in for

X flight impact offset due growth We night about accommodation and constant negative currency impact point X% growth to room X% positive quarter from of changes bookings. FX, of X%, to about be expect from second bookings about below higher in growth ADRs plus slightly between X points

X% to in the growth for impact revenue FX. by in second changes FX, line growth the quarter second growth growth be X in to to second from impacted X% revenue growth of expect negative Adjusted points shift revenues we in as with for quarter offset associated and We about negative be bookings between timing be with changes payments. expect impact is and quarter revenue the Easter by from increasing

neutral source be a as revenue a to deleverage slight the we Easter you in marketing of expect marketing quarter. expect for year-over-year. to be percentage We But of timing, if adjust

revenue other second by and to a higher We sales expect our than driven expenses merchant the quarter, mix. faster grow in

more quarter quarter. we expense have year expect with been in to OpEx fixed due growth in second new than and last primarily We guidance investing tech line revenue our IT the grow platforms full faster provided we as to faster in the

We negative high changes of in adjusted expectation to be billion, would be -- for second timing mid- growth. quarter pressure EBITDA the growth billion for points points FX, about for single $X.XX EBITDA down our expect from digits Normalizing between and due single-digit from X changes in about Easter low about year-over-year $X.X FX. timing second adjusted and impact in to X Easter to and of shift quarter

results In closing, are and demand environment the are we pleased healthy quarter our with first we seeing. leisure

we're outlook before next to our We of full full not the our develop see months updating time. updated few commentary year how this terms want the commentary. year, any previous for In at considering

year expect the a be strong to XXXX continue company. We to for

results to dedication commitment make towards for vision to easier their would the And everyone colleagues these work the experience to shared new strong across world. all it making I our Lastly, my for you continued thank quarter of first thank and hard possible. like your for company

to We'll and lines. now you the will please move Q&A, open Kathleen

of Your Instructions] first Kevin Cowen. [Operator from comes question of line the TD Kopelman

Can that about the in So you're on more And it this seeing kind terms neutral call? then the seeing? shape you a you're giving us of you a could quick on changed of of what trends through And any walk guidance. bath comment about versus change? you changing one window as booking on the year the it's what see you or that February concern you talk whether the expected of if

Ewout. this is Kevin,

that to we second less is elements I have you you expecting the booking guidance One in the couple in consideration. take think quarter seen quarter have we you, to are we If about have than provided think that of in the window expanded a quarter. a first second

from So nights our there results. into has pull little a quarter bit of first of room the been a second forward quarter

expecting to so the is in little that direction from seen we are is But opposite combined of impact the are noise, what the far. expecting. first look a a in Easter from say, the benefit year We window. if from But results quarter. half that booking second results the particularly more bit East Easter Middle you so of There quarter-by-quarter, the and is at an we have slight for

have in actuals consistent quarter really first very we results the strong year are second the the believe guidance So that for quarter, to provided. and that full the we guidance the and

are year, you become the quarter of the and the In comps actually, that terms first a easier. of quarter comps for will second second us bit half the tougher and are comps referring,

a to So be the XXXX. is going that of benefit during actually course

Mahaney of the of Evercore. line from Mark next question Your comes

two I Can questions, please. try

channels, Is then or find why quantify is could or you marketing percentage performance higher you just marketing efficiencies you connected? channels. providing all general? in in what And First, total are on a customers think overall to at you return there now spend found secondly, are platforms do just out ad the that that transactions of paid better ROI their that

why I talk generic that first the gave it. let little So and I very repeat terminal I'll we don't think a say bit a part, Mark, Ewout him about, away

And that with talked all and we've this programs with marketing Mark, many, all the work. put that it for are put find to let's because, that's what And -- when we're not marketing looking we're But find always we been we what to spend are incremental this we of you doing. money. advantage have a the are better. we say, on more people. competitive the into we've view pleased and specific What's money very ROIs some the look, these many of programs. are fact is there. years. duplicative, know, competitively not what going holistically. It's for by I'm of our best are doing well, when producing best actually nice to way I around things really not And things use out definitely hard definitely, pull about lot love it to that And We really And get actually into everything. So it's work, a we things it a the our things obviously, we work lot

repeat So they've shout I'm go done to once, them I out -- give you we've good ahead. what going really some Ewout, said a because but want know going already to work. to to do And

the Sure. transactions of very rapidly. that trip connected is as total this mix Mark, percentage single digits moment at growing a is high so and of

us it well. levels from see them more as value for other up coming trip buying seeing combination we're to Therefore, we benefits notable more is I more the delivering -- customers. think look in way and and elements. to higher more that the our of verticals, customers we connected customers multiple higher provide really moving We're is at with over time growing they're genius, repeat therefore, loyalty

really of that interrelated. a and we're are metrics these having in all moving here flying wheel -- direction, the right all seeing and is we're they this So

of recognized terms by what deliver travelers. the value the customer and added we seeing to pattern those of it being how really the So we're by we're actually encouraged total in is

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

all wondering the how Service you're any since second, at maybe how regions Digital has than disruptions if give us and And or that any this question the Europe it's And update point growing if that time others I in and changes Any around get pre-pandemic? regional performance can Act wondering in was of faster you your just hold. changed? any just then channels We taken opportunities? marketing the seeing changed it's mix. or

Justin. kind part. second Thanks, missed the I of

start part Ewout let first on Let the then picking me it other. with and up the

And that the talking some on things the parts years about of was is pandemic it, for pandemic depending definitely then the of we've one in mix. how people and been regional out worst because was impacted ways. coming the when -- of regional So its issue we're doing different

in we're as been farther first. out, we we in out year, came And So calls we're they of -- if good now had talked were talked the last how recall, because last about U.S., but calls The some that. comp Asia getting you coming course, behind. still behind year's benefiting of a

course, are harder things know a we of of But and I've terms one of had strong looking so said, speak, the last So one we of you mix to year. Europe. we were comp, very regional in though, things in the

that I a And And I'm have that how the well have be pleased. better back something spending have that going we our previous mentioned to I've energy. pre-pandemic we calls, time performed You of times money should know really also been couple in in U.S. we prioritized is U.S. the numbers. in

put the producing that to that wonderful just it's we've work results. to actually And effort is see

the of continue we've priority well our in alternative We are to accommodations. done going one areas as I the think And where put in that. I extremely to U.S., said

helpful and talked combination a a strong in it's giving but accommodations, platform, us such a improving people know, the that good in more about of the to be marketing, looking them great believe global mentioning And continue you've things in increase and on further the the people reason to about alternative U.S. I our put willing we're And you alternative making being where to you together been own we share we and some to the will particularly seen forward have are come and past now have All product. little things in we too. alternative the bit those I'm think I our the properties of the a supply, U.S. U.S., home, we've accommodations. our have types that behind onto I've are are As in in the very the opportunity reason so basis, also progress,

I'll catch rest you didn't part. the second pick let Ewout, the I because

numbers in expectations, to the high was Europe growth around first to our better single-digit quarter. the internal regional continue Yes. Europe, very mix, And of do our that quickly above expectations. important we couple give That than even a see own

great the in very mentioned, growth, as particularly U.S. the we U.S. the a growth and that then growth, and first single-digit in Indonesia. faster Glenn low Japan, quarter Korea, many future China, our India mid-teens opportunities Asia at And the in have but already than strong. believe market and are better with trajectory we have U.S. done additional to grow

actions, question look ROIs from our regarding Google that growth of an paid the direct we all changes, paid impact Actually, from as at from channels. that coming really is seeing the the we're the second optimization neutral making, the as marketing marketing well and leverage total higher is channels a changes. of in to the the I respect see if don't for improvements We more DMA say would as your we're effect. for DMA own the first quarter, With that our approach us continuous our And

question of next of comes JPMorgan. from line the Your Doug Anmuth

the of could customers that understand as to a just upper And the low or anything single-digit in minutes just Is maybe you see us there the room help elsewhere? nonmembers? us hoping they few seen path just point anything on comments U.S. a relative ago, above loyalty you've to on your night versus you particular market. growth in quantify Ewout, perhaps Genius what can into region, faster bookings tiers? from follow-up you move to growth in frequency Glenn, And then

give continuing give numbers prepared are program away partners and don't the expand, testing also to here. together additional don't verticals, tractions. get opportunity We our to business idea but more our membership. with partners increase but for though, to can how how my am we're talk both we to a about traveler, that continues it value whole the that's I in to relationship we are about and The is I grow, We're of supplier business. symbiotic flights, remarks our really incremental many also provides Doug, to in Genius their why I mentioned a they the when pleased now value working our how different of say, as tiers. It's in need. the increase great value demand

do. has something different come A true value value to participate is going and how will they to believe start they continue alternative somebody that. ourselves terms put ways in participate getting to back. or partner travel and to they come experiment actually out of decides Genius decide make of not and sure we're to to because And are want the for to providing they in any best we to should are they even then that sometimes with us

my about And that we talked it mentioned prepared remarks [indiscernible] too. about in

they back frequently, the I they they more using come to that's thing. I that low about Ewout that. love see the said see we'll it's As this why the I talk again not wanted great to little I back. back come bit wheeling, for rep. U.S. idea think to the single a only I great but more opportunity let coming he And people thing. I'll get as and come then giving the us. on more same to It's back get comments he another about make use as a value, for see the reason Any reason, the more that people more something benefit, is flywheel And is the get term digit And again value, often And

couple the insights around Yes, Doug, of U.S. a additional

the fourth what of within improvement sequential is So particularly encouraging. which particularly in highest for alternative our growth, accommodations, is like the we terms really saw growth the from growth quarter we the

opportunity trip, expansions position that we're years a the bookers, the believe look that that already connect having going fantastic growth. is we more we you very more scale verticals actually in us than the generative have to It's the strategic the that growth much to really we're and many AI expand with doing again, U.S. an domestic And few and U.S. then having the of other we're market growth international If at multiple with next today over U.S. strategic in direct all our for opportunity. initiatives

from comes Mizuho from of the Lee James question Securities. next Your line

your Nowak next line from the comes question Stanley. of Brian Sorry, from Morgan

back to come Maybe to about U.S. last discussion are the having the you

sort unlock or as now paid the the you for do I the the years in couple about of search sort of category XX spending, growth be so, a branded of of maybe to U.S. and you, last online the lot of spending, sort U.S. merchant AI. drive in think the you've yourself either think years, had the will outsized what within between product of travel largest to continued you strategies guess, Over next differentiate

doing an talked And to it used there that And I've industry is a I you're the I've Brian, think do We've so way research doing I technology, is your enough doing out of previous we grind again, would report a are hear specifically different. pre-pandemic. with be and really increased can seeing that's the well, calls share we're bit they to between over the it, travelers bit And us is, a a little it word about online, the of incremental? -- instead in couple with build us report transformational that it's believe do And more, have speaking things, keeps that to not time, possible. question of And be And we about limited I about believe I on just going grow doing doing interesting just But all benefit think way I kind so I the we're that saying, frustration believe is had the types how number that. that have talked question of to And of for things changes believe competitors. things over that continue it you is different. U.S. love online. about itself. But the I a AI, to your are it little that will I'm question. numbers, I there we I directly way of I by incremental much and And the is is things it opportunity how to to grinding when a about at something right. interesting I that our can about And your out, lot said a online be still say the getting this to looking wow, fairly we will the that yet. going question, down the differentiation going tremendous the and there of is worked things just we time, can we're that that it going you us. we it. more make talk have been that given business nowadays. going. continues out. road

particularly things to so So And become seeing it over still not enough. that next of be, technological advancements. much become believe of years, and I these testing what I'm than will it use through are seeing even though better Gen believe the good I because that it's used AI, much the better few I'm being it's done. AI. And

supplier from it. provide then to continue are back get out of come able I'm travelers it it is the sides to on. to they both and they going job such the we love and ply we see begin using Our we and now our fast, to milling marketplace sure and that partners to be our to make value

line the comes Securities. James Your Lee from of of next question Mizuho

seeing any you're kind XXXX, expectation. prior that ADR Europe, your of over see Two in from region I I can terms on that you among changes travel year? of especially you operating? any here. last guess markets guess, that And you're in what season, you about maybe expectations lastly, to summer guys Can trends also, how update by for compare us does different ADR and comment

were in what flat is Europe in North America in and quarter, were James, the and ADRs in seen up regions, by ADR we first have Asia.

So therefore, we on have a constant currency basis, X% overall growth as in today. reported ADRs

summer. said a pleased feeling growth we're summer. I'm terms travel take in it said the And feeling books on that's I I going have summer, scheduled earlier, the where to about that's that quantify of not I'm that during for healthy And the place though. to as we

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

of you is could and can application theoretically they're share just folks here well. potential trip access how trip implications then about there's like have It top-of-funnel doing there recommend if there's Glenn, to other wondering seems then lot if as behaving. the who you anything research, a because planner, the pieces might be of

could connector this drive there greater So activity.

So just than has little out less been wondering, for this a a year.

just wondering what you I'm seeing are so So guys far?

Yes.

to are to such, using So it. who it's we're learn people see the and little numbers continuing develop all the interactions time, in using of and people are how

small you. very people it. people compared our who with of believe lot a are number And it's people So the continuing advance to to the And down potential I number a tremendous we has too. use services, think of road. agree that This I of but

It's first It's it's albeit all a to number case believe And travel. that do In AI to simplify always very complex trying AI generative going difference, read the to it. time. Gen will the it. in right I and what of using best the any see to to hard fact, is make use because about we have there how paragraph, of something understand permutations, huge really article way it's take not the

But tremendous get as do the hotel. and one so their talked about time, next I really for be travel, provide our believe helping And people couple on all thing for that we've will booking tremendous planning, in experience all the for be a executing important it to destination, want create opportunity to to is enable us. which able about, into quarters. see better do You're them They changes the I this that the elements better in want believe, their holistic stuff. customers. goes to said, system going much that over to over has initiatives do not way it nobody to they we of because traveler I and a bring, just a

Horowitz Bank. next Deutsche Your from comes of line of question Lee the

for experience of OpEx of investment to compare you materially is growth algorithm compelling could. growth structural debate could at is this the if revenue Two And strikes $X base investor longer 'XX, guess, put I areas the that drive most of up perhaps when that work maybe growth bookings the one fixed what is early on fixed Ewout, what it Obviously, of you for expectations. order your maybe I on in a travel sort that remains you booking to a online then robust relative OpEx. relative point. faster comes particularly sort to 'XX. to above in in to your

has greater shifted has that at this more you So sort business in point what a guys perhaps maybe that goals maybe I of to or guess intensive capital want? bit sort accomplish of headcount the the necessitating

Yes. Thanks, Lee.

your So about question first, structural growth.

able bookings. company, is, and about So to much online successful we for GDP. of will I high am of I than faster shift a This phenomenal future -- super course, offline very that Why? super the be positive company. really to quality, believe the -- grow outlook very the in

material that X a believe being consumers on my here view, also spend number now underestimated will really than the company. in position think overall, experiences I I that on then for areas actually, the goods. And in more are of that weeks

let me first, about talk So direct.

app, are has that anymore. coming I in really on game low think to really the value respect more we that. dependent those us XX% it of travelers talked and not a share have completely this pay the is and now company direct. with booking a channels direct we important, the to now for BXC adding questions We're about complete back that with changer now range is is us, keeping are business and and before to of of is benefit the previous more we customers only the And with having those

is the with to alternative other we have opportunity The respect accommodations.

I understood and underestimated. think, again, is not well completely this

in platform one a different end accommodation. largest on the to being in accommodation further are and travelers book want size, one we lot a the And this in from sometimes the alternative actually of of most have growing we we still type terms and our really type of the are that X/X a We go to player of and of and accommodations space, of to faster accommodations traditional up the completely go and fact able having opportunity are combining other, booking to But quarters. to offering. develop last X in

make Gen AI, And on commenting about have ways well advantaged as quality language stakeholders the the and AI. think with partners the to to strategically in respect is the language in have of different was we data. I Glenn say, so is it's travelers the have really terms models. I our biggest last this. models the we go just because that of differentiator. the Because all capital strategic data we Gen we not benefit into can a as in probably the touch investments And of The much travel that data other the the industry. and

years. So positive therefore, optimistic for very really I'm next over the the company growth and opportunities of the about couple structural

fixed about OpEx. Quickly

the strategic the question actually drive of future growth help has verticals, company. that think has moving your previous will multiple in I with that done, company couple to but do a that is linked to that payments, for expansions

years. as have said, few from we lower a onwards. But fixed you are over will more OpEx actually thing. to that the growth good see And XXXX targeting leverage next that's operating of we So the from

we'll platforms. year, of leverage some will investments year, next operating this of see investments, from been But you the about some example, we the coming those of all for finalization some So then for have have making. end still more tech in of

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

the in trip that trends and which over the far your are shift, requires out so shakes the supply the how in you sort ask getting geopolitical and that booking trends. the offering, the of just up out, over trip is the second, of that you've that underlying app. that sort window to sort the quarter, to a can you wanted our like time? how versus disruption about made it about Just impacts the the transitory of and potential attractions need about the drive And how to date, and to looking about you're some of be is how Talk understanding the called solution And room about think talk business? to offering closer talk size behavior Easter open underlying traveler night to first you could attractions how on of you investments of time dynamic today back full often that to booked where opportunity? connected help to that drive

With question, the respect to dynamics your in first quarter. first room nights

the were bookings than our Europe quarter. demand same. room was exactly and result from some first compared to the before, here of we Middle the as able Healthy actually, we that stronger less from in quarter night Europe, and and that anticipated, an the fact the And guidance Middle mentioned saw, impact, positives impact was East the East. you pull to So expanding first the window for this we're booking quarter was into the excluding

small there impact anticipated Middle So was negative, but we the course, material that Easter no in was, from a of was a that guidance negative, provided the before. East.

and past. a lot question third because a it's ask to mostly is the in supplied about attractions, parties. So we good through talked haven't Attractions it

or a or way. So we the Viator, get we like clue with amusement. have supply And arrangements companies that

talk and much addition about at don't In we -- this all either.

those a that, as good far also which you it and We tractors. or we recall, Harbor, attractions open it's may think the have of if medium-sized acquired because when small- for table notino

be all priorities can't everything We we once. though. we definitely be have at but -- can be and everything can't anything We

thing, we So then get make making to first. have the been get we And that well one, biggest have priorities the that stuff is. going transportation ground the that sure have up, sure get it's flight the to all that stuff

book and we've advance. Now people you attractive. come They great are And their as far, also that. job of to, little about because want attractions trip lot part to people talked far to building a in point a the generally out, have are of in overall don't doing as they and emphasis connected bit want that's our going to now, a

destination, to your they they app travel right and of app, it use I get -- them because that's great offers, why to fact, your the go book the that's we're be the send of a when and like of able amount them to it our or something can increased lot want agent ideas In great they're love pocket on and fact it, having better. actual of checks in able to in

a particular And people that's destination them want to All to that down can customer to Genius demand. and give why opportunity bring -- on get program the have us attraction a and over something road. we're incremental bringing an tremendous that in who supplier. our to it's business that for into push

We see roll with another reason opportunity even us really scratched to just and on. possibilities continue yet why as that's for to the tremendous that, we have just I

Citi. Your line next question from the of Josey comes from Ron

maybe on alternative ask a follow-up to here. want accommodations I

both between with thoughts on And then hear that Ewout, combinations just what to properties there. faster Just and bookings? about much like perspective, Ewout, that given nights in about the as you're an mention between out on overall and available past higher as both you're well earlier growing? what the And alternative are offering mix traditional, quality X wanted this advantage. I'd forward your seeing X.X that little seen booking you've bit to the Glenn, consumer going a I side, how hear you differentiated the talked that from room that's site. good you book love a Are these those other a given those more than but platforms supply the million from maybe made

let much way for are so other alternative for take to They want compare. same of they as in different apartment, because want rent we alternate, look want at accommodation to alternative separation, they around. we versus proposition consumers looking maybe the they or to accommodations start They up that a seeing as the And artificial if with first actually end hotel, an both one often, look both. traditional are and many platforms question our separating alternatives. to the our on other thinking an traditional because part not it we're in unique the second in So of is that putting we're me way the terms believe our is an

it's to combined is the traveler actually, to offering propositions think at really look customers. way we we all it So bring a actually really of strong a our and together these have

all don't look was us, of some the do we're high-end because I we so quantity different have terms absolutely not quality, comes high range the In is as think we I certain we I live these talked we certain area homes want that. to York geographical our you to area. I and I accommodations doing I not I quality, see in it. of I'm think points. and the price have Europe. every are, I'd don't for have types bigger in price about of luxurious Look, great cover entering types that look and complete be may be and different we of lower reason the base -- no may opportunity have enough like I before higher-priced and do things. don't at that look the metropolitan shouldn't at It's but enough looking, I close inventory well. Yes, we more. summer big our but we obviously we New as If the that areas. gamut And And that of have in a see we're competitors, that throughout things I've are think though, and at this be as surprised It's we the as at to significantly

very, very So are we competitive.

about us U.S., I more to And great great types have do there. But the mentioned making We that's an there. continue and all talked see I inventory I've work. earlier, area progress we

line Kelly Your Oppenheimer. next from Jed the question comes of of

Great.

on unit demand how up managers, travel. question Is more it inventory? How summer following getting around about last in think PMS impacting Olympics do is, Just we year, this view more then that property just the of events in And this with how or would travel, Europe Glenn. that the people you particularly the big second connecting my single point, should systems?

Sure.

to to very And a over and go do bring the And low managers inventory surprised to to significant to for it's being for. to of lot a to have of that a And and those are make that go you them who try I managers recently, likes we not you're the sure some of we spent number inventory we make And in get you're individuals are doubt, -- where when the There's time more until multi-property easier looking everybody. the into. definitely we it business. fact though, that we more And really trying the yes. not use. saw platform time, place have that -- So to providing supplier effort means trying something no really an sure recent. have

now recently. individual that to different can that improved Just some it properties. the our example, things And big. so until I'll a you give bunch themselves that's well, individual significantly And go not an out that. be was, by whole that through able do turns I we for okay, of big the with reason may of was to And reconcile recently, fairly managers to be hard payments

now find for helpful." end will because "Yes, get they be more demand happy whole, a to easy Booking.com I it I and As saying, up incremental than

get to property business never have make revenue, X to your definitely to inventory to want make money, somebody going If back. never That you're you need That expires. empty.

looking that's more try people why and are demand. So always get to

platform things In Paris and like find come they to we and provide mystery a that, them a happen with as stuff provide long Olympia with demand easy summer going the them we it's the to Olympics. us. of regards what's like that to and they and will As always with the

now years. here XX So I've been

be going else So and it happen something was I've and thought whole what's then a going Olympics to been through is to bunch -- this of happens.

Here's point. the big

I concentrate bring worrying can way over I in continue in past way the say cash the guess here? customers and to more increase we we've And the in the to I and timbre and value of I do the not that on company the think the as done for time that's more go, too to more investors. lot our much guess, run. couple long a XX a this powers how something about. suppliers past but for Continue I event of really as one don't last important -- flow the years individual have I'd good spend yours. What in value, last view weeks. done Let's That's and what we to limbs

Your next question comes Tom of Davidson. from the White from D.A. line

U.S. I here you but up was kind I maybe unit known well on the of on brand the market. in the to today Booking.com hoping than less could relative Europe. accommodations known, on the pros of comment versus well follow U.S. is Europe. some economics wanted of Obviously, business Just one. your in

room like take maybe a kind heavier here, maybe then again, so are marketing nice the And the lower. there's rates of high. but ADRs per night here and But load are

unit over So in kind going of I'm next maybe economics accommodation stack the curious of you see up at few the the just directionally moment? U.S. where versus how years? kind And Europe kind that of

of don't and think that such, detail. but we're reason competitives any that these asking, rates, right further in not be that. break than going disclose don't to we reason terms I down much giving of regional than I growth further for don't and And you your starting more for any this We now. a understand we'll

That concludes our Q&A Glenn Fogel over I closing session. turn now back will conference the remarks. to for

Eva,thank to joining want to for good you the customers point the want vision you, everyone We on company. team. and appreciate Ewout long-term continue employees, our and I very thank the especially partners, to I we as our night. thank Thank dedicated for greatly much. you. Thank our build shareholders, our our

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

now You may Goodbye. disconnect.