Expedia (EXPE) 8 Feb 242023 Q4 Earnings call transcript

Thank you for your patience, Expedia Group Q4 2023 Financial Results Teleconference will begin in approximately 1 minute. Good day, everyone, and welcome to the Expedia Group Q4 2023 Financial Results Teleconference. My name is Lauren, and I'll be the operator for today's call. [Operator Instructions] For opening remarks, I will turn the call over to SVP, Corporate Development Strategy and Investor Relations, Harshit Vaish. Please go ahead.

to Fourth welcome Call. XXXX and afternoon, Expedia Quarter Group's Earnings Good pleased today's our Kern; on be CFO, by Whalen. I'm joined Peter call to our CEO, Julie and

certain commentary to to measures most expenses any release. comparable included compensation. include reminder, And these are the today measures exclude our a Reconciliations of stock-based our references As reference to in non-GAAP GAAP unless measures. non-GAAP stated, will earnings otherwise

other which also about be statements are predict. subject are making These uncertainties predictions, to are future statements call, are and that statements expectations or will events. We and current during projections to forward-looking on risks difficult the which based assumptions,

Actual required responsibility to call filings do and results discussed any other factors our by not differ the undertake forward-looking these XX-K, during to SEC. Except XX-Q law, and with could we as this most statements. materially due update in recent Forms

today's found with Relations Our replay filings and SEC a of me let that, at be call over website the turn earnings to can call Peter. Investor our ir.expediagroup.com. release, on And

for Harshit, all and and afternoon, today. us thank good you you, Thank joining

we'll to First after stepping heads will contract passing as down May business. announce I CEO want our Ariane baton be Gorin, and for news who be that Expedia in ends the just of the all, I my to currently

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and assume of opportunity that ambitious defining part might audacious the on the time use COVID quickly one an our to my saw tenure to reality, embark most in was we transformations. While COVID of you

I our has size attempted. think of ever a company

but prepared my and lying in finish I that massive that afraid as to say we always do now, took deal didn't starts I'd be of some much half and we would, I you my as were as fits proud test accelerate were by had that we in when the back we with bold attempting, year, sometimes we we pushed not But you have as to mess. was in mass would this I'm fact if as on And many was as It the overhaul. of be And through. work last hope something doubt. finally fact, We see that meet began in this could the to anything, massive that timetable.

have in the to amazing of be turn, I opportunities challenging started built team, unlikely career. compelling Over a in things. and who, say years, and what one accomplished the way of difficult an that last tremendous X my we to turned out most

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results. our year to is the discussed on our move backward let's steps to tremendous when despite difficult yet unpredictability. and of that, was in generally willingly you many despite but really guidance We change. I addressed very We've can this change you inherent and fully our year. have a what to that create. pleased performance to times, a met change with that, was the the of And I've we go breadth volatility create It of 'XX. such that take forward, landed lot Now delivered appreciate

did in fourth which in bookings the strong EBITDA gross primarily revenue see reduction was quarter, In in we softness driven average turn largely and by performance, we prices. air, ticket by a saw but some driven

know, profitability impact outsized Hair gross but it all bookings. overall or does you impact does very on our an much, revenue not As have

While Air regardless of any improve our macro of AI-driven air continue to like and macro signs many has of we to opportunity our been pricing new with capabilities. see business, grow softening, we areas product And significant showing features some headwinds.

hotel Our running held XX% gross bookings back has at expected in front-end Lodging clawing growing quarter ever a in and our now very planned yet than its finished year-over-year. degradation, and QX history conversion and business suffered record are tests up pace. more we Vrbo conversion with its breakneck migration it another well but had and

are the punch We also our in new is are competitor leaning back that we our degradation and back work into year in nose, to last main now designed squarely marketing with really concert excited the verbal expected brand spend. cut on but conversion about

we effect get are on to a There's back as bit offense. we excited ramp Burbo of up, back but lag

did at migration to into journey the sheer transformation and improving from lot of of more more plumbing the the launch change in trip the our impact and 'XX than since the is important verbal the build. of effect any XXXX. customer the of our have improved ChatGPT and beginning driven every of more on weapon the completion whose learning from AI an to But in planner. machine marketing secret experience of embarked and the product magnitude key With as awful we to One of only launch in we our OneKey, course, from win of 'XX We day, increased will continue

and on first, region. everywhere the to fewer group and we an transactional the tools, eliminated to allowing from different media social, fundamentally do and this creative period, full-service dependency us We internally. over on retaining to shifted and brands And unified data around entire optimize across rationalized the on we bring in marketing, SEO customers we built arbitrage with business investment. and every return highest buying performance acquiring everything web app X focused programmatic LTV XX and with all approaches metasearch, globe into else. marketing brands We Over investments one instead XX the team to in and in consolidated agencies or

One X decommissioned XXX linking side, We XX data and into On all we systems We X million loyalty universal platforms the went on tech CRM learning machine built and stacks from We profiles XX experimentation platform. customer to messaging different brands. X converted common platforms X. consolidated key. platform identity to from

reduced on We launch and tools a that importantly, single test-learn brands, number and most and a are front-end across gives all footprint, features rapidly brands developer stack test have meaningfully the with platforms IT ability now the of our geos. optimized our to and unified us platform

simple conceptualize the faster product. feature way It and performance elements massively perhaps our to and have and much in but how test accelerate is to we deployment better allow these fully drive one all on is us how learn hard to double-click changed, capability

sometimes Our deploy and at now around contemplate any could years, couple on globe months, used unified a just even now ago. What of we us features just weeks to pace takes allows the front not and end a take years brand to days.

something that recent Our took the to of list U.S. cars launch perfect deploy. because made example never but the cut Hotels.com of massive in lift, the post the unifying literally on is engineering stacks, it weeks of front-end a

run the [indiscernible] to The woven effectively allows will strongly our front our multiples and tests to impact we test learns of stated much be XXXX. now which with allow It allow and combination us to end unified ML Xx in call us along while of the impact used our massively same us increase the and throughout environment, to experience test customer and faster. enough. many single AI them cannot of That breadth

the surface just are We just place possible. effects a have different so are the is technologically, only and what far we at of scratching completely seen

way. performance. there in transformation, We our it able equally and notably bookings to financial throughout consistently deliver our our to while despite achievements that revenue and out the reaching of shuttered are transformation, remarkable business off lodging of swapping of grew while along be our solid endless record we businesses were gross even sold proud a number is having And mid-flight, engine levels

driven operating the Our decade. over levels margins a highest to continued in discipline has EBITDA

down is attractive prices. our strong to back free our buy share cash used levels. a flow count have to result, as today our And at We XXXX aggressively stock

XXXX to we a get and as to innovate have heads peak. working we power But sheer closed in more XX% and have for is office have in improve today. we over fact, our Again, in we lot of we to different our effort XXXX next XXX it's people tech puts XX% afford a still wrong a to and our of mean us test just going And all Ultimately, linear decade. of we ability and fast meaningfully, place That customer which tireless more position as into wrong lot learn and a from a the part right. what the to gone from our as fewer get more again will things learn get can are We improvement our product locations approximately XX% the than that once simplifying [indiscernible] launch industry company big and truly at experience. does not journey, 'XX, technologically we, in is here. a lead in

XXXX. early expect for world the the demand lap tailwinds remain year So to year. last what post decelerate, Omicron rates saw On that in but relatively we growth level, all especially macro travel healthy, to we we as does expect a across mean we the

internationally some rental both and We year-over-year. past growth grew very the We softness in lodging we are vacation North expect to faster Europe mix may closing. ADRs this see prices much continue led also but to still overall that gap ADRs slightly, across and America outside the declining expecting Western quarter, hotel effects categories

positioned And gain we this to earlier, seeing we top meaningfully car are some are in and and prices and have ultimately though, the as backdrop, competition well I this on pressure continued particularly rental share Against our go year. bottom rates. U.S. grow offense, ticket against back mentioned declined, line on air

stop largely we will strategy doing unchanged, the numerous recent have distractions Our finally in instead years. surgery faced remain can and ourselves on but without we execute

will laser be parts business. translate priorities, which all broadly our of We strategic on to focused X

a on lifetime to by greatly improved sharper about targeting much million our become travelers. we focus customer over AI go and First, and with continue members. who which acquiring after XXX and measuring and capabilities ML We've and high driven OneKey, ROI latest product will has which channels the retaining value now

towards retention, to all repeat business, We underpins will shift continue which of our loyalty and greater more at direct members. drive and

In the year-over-year. fact, nearly percentage year ever of we the our with highest XXX app business up coming points from basis ended

year mix value AI-driven we products and key member to to One in targeting, constantly scaling increase build about those momentum improving customer members better good be app see will One internationally with key, We and really continue of this and markets stickier to feel our roles. continuing our expect in its

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Our the more items drive and basket. consumer's dollars into core will continue experience to more

redemption brands cross-brand their key OneKey, and all needs. engagement also cross-product to through will earn our more and our which across stay for all enables in and We encourages drive ecosystem consumers travel cross

cross already have out with continue business roll roll in lines since U.S. One of the One an brands launch the to who of number to and of early increasing are of Key. seeing different And the key signs ability now U.S. out on We our customers brands. we this new as the shop outside

allow to share to consumers. moves capture from more expect wallet us We these all of our

did overhauling accelerate We've market have fit losing Our platform countries about expansion. our We back our have to been market certain priority we more tech retrench in about we to model. before the global U.S. were where pulled product how the marketing and be back during pandemic and right share. the spending we will third not talked while

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growth to penetrate. very a still given expecting our capabilities huge strong still and TAM are We differentiated

all As few I in have the BXB business years. we the in as we technology specific and BXB out BXC, to our I innovations rolled the before, have all benefits along explained done last win with from work have product over

supply, just to results externalizing ways a seeing we to as We share gain have to find achieved our new globally, good early our offering and beyond our are of components strong partners continue wallet well. of in technology in And pipeline we accounts. customers

enthusiastic Overall, industry. travel leadership in about reinforcing our I'm the powering very

Our across strategic efficiency drive and business. be will our fifth to priority effectiveness

grown mentioned, highest their XXX more. are of growing EBITDA but As basis XXXX, I much capable margins in we have a we over since levels our to points decade,

to not work but of to our experience, less. with to also do was more enhance us only allow All transformation our consumer

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hello, and Peter, everyone. Thanks,

Peter have I've Vice to as Expedia Peter into I will of this I to has for Peter want time, support and as her do so CEO, Throughout to as came confidence a with through Before our pandemic will and, He CEO years, driving assumes XXXX first to continue our working for May. and through an into moment my since to look ongoing I glad Group and partnered in opportunity us our this of our to more Ariane to pleasure successful take transformation I company. his the ecosystem, it and leadership on this be am get our May. Chairman. Board new course, a journey, operator Board role as exciting on am from Ariane business same the be to next in Peter. us She's financials, I role the thankful thank for role Expedia missed, she I had done Ariane a many but our joined he'll as in accomplished I massive future. new forward lead XXXX. express since great . At familiar closely so together setting job knowing navigating CFO been our us phase and had for have I team manner Expedia work business to have has up someone Group. since the an who assuming in our detailed very my amazing Group's alongside

financials. the to turn let's now And

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business $XX.X bookings For full gross year XXXX, hotel including growing with versus the total bookings faster growing $XX last drove we delivered even over in $XXX and billion lodging growing at in billion XX%. We and XX% year, growing almost XX% than margin also EBITDA EBITDA and faster XX% of of points. with which basis revenue, we XX%, of in expansion billion of revenue grew margin billion generated year-over-year XX $X.X almost an XX%, resulted at

a strong in its the the half in went And of business margin growth acceleration our marketing for addition, of line the year-over-year from bottom leverage most growth revenue us our In business meaningful top resulted to with year. XX%. BXC line of And and saw both meeting our generated strength, year back over growth having financial successful year sequential BXB in top expansion. full strength performance this year overall history double-digit and in with guidance full our

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X.X%. $X.X billion debt remains cost at only an with approximately Our average level at

target by gross Our gross reduced towards strong to growth. of leverage make leverage EBITDA further a ratio had our continues X.Xx progress Xx, ongoing ratio our driven

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structure optimize line, therefore, further to On improve and we believe the margins. have bottom our we room cost

to continue to sales cost customer efficiencies our and across of operations. operating drive and expect We other support

drive expenses, These result that in of weighted with year quarter. levels. first efficiencies overhead close expect towards onetime CapEx our phase structure are resources we we is to $XXX and year, expected mirror. translate and as on expenses we our and to the $XX next the our in as will reduced very over savings to approximately replatforming now bulk taking to have we initial are million the the million align these rearview with look this based journey. And GAAP a streamlining at actions deprecate the systems on redeploy also to estimates, cost And overhead said, our heavily Overall, of

quarter. expect still share details, this We to more have to finalizing we are but the

reignite as growth this a drive global and naturally far for But gains. international BXC business. This behind marketing leverage to our percentage our efficiency year overall shorter-term drive are we will drive to expansion share further gross marketing, the investment, expect market efforts on bookings. we still incremental some of pressure As marketing BXC as our on investing despite

scale. As continue to direct and we retention more improve with transactions, conversion

together, with year to should relatively Putting margin XXXX. at debt of another all deliver repayment in enable this expect and EBITDA similar possible EBITDA our we target record year. some we approximately this to saw us expansion Xx EBITDA levels what hit This early of growth to leverage ratio of

We to also strong mentioned to expect strong benefit drive to this from the with returns. efficiencies flow expect cash CapEx to we growth. we leverage EBITDA cash free growth, shareholder combined see the flow earlier, I further the And maximize free aim

While our remains to reflect prices increased not recent expected believe does long-term undervalued performance that in of and we months, the it business. stock our continue

to we back such, continue authorization the our new last buying strong will of opportunistically. utilize stock As billion cash-generating quarter share announced our repurchase our $X power business and

of our pertains first was our facing quarter strong, outlook, it in first some therefore, comps and As to very year, tough the first quarter are quarter XXXX. last we,

the to continued in to pressure grounding brand, our Boeing due Peter levels from fleet seen well we as capacity in as have earlier. Additionally, reduced the to year, of alluded air the and pricing increased start pressure as Vrbo some

to in be expect we first mid-single bookings our digits. and the the revenue result, As growth a be digits in low quarter growth to to in the our mid-single gross

we with last expect levels in we compression margin year. the some QX addition, In saw EBITDA consistent

we to throughout move gains from year, our rates improvements. conversion the due expect As will growth we product increase

building traction high faster-growing of One global stacking continued in loyalty The customers accelerated in further our markets. our by and key ROI higher momentum program

to And what that, of execution deliver our our years us And to question the financial that behind really to profitable now I getting I on Group, this, Khan strong Our been offense. us of the from able for So one enabled Expedia initiatives, continue successful the on With to to returns. than it now record shareholder with team Thank in position just call strongest at open most here are better to of we're multiyear which heavy started. positioned enable we Naved would Instructions] the am growth feels Yet B. closing, us, first lifting ever our proud has questions. should Riley. accomplish financial combined and deliver you.[Operator the like go from comes with to long-term of

QX I of a Yes. but will One and little talked the calls weakness it's with questions. migration sort miss after had that And some these a on January. seeing on still Thanks of the I call, I about Peter, you surprised kind think a update time few lot. taking Vrbo, you the in app some complete, been

Just give is talked color reason us some on for of you've and And the that? shoots. sort green what exactly some about

with on for the far? the also from so and on? Is then key. And previously, maybe -- much improvement And I you us learnings think give are you half talked in retention commentary see the do first on that? rollout, maybe about still for cards? the you terms there. how here international room So of just convergence the that -- satisfied And on some where One Can you talk are maybe about

Yes.

the par, So I forever. migration call get material And over. pushing expected degradation miss were could to tail of Thanks, takes Navid. on it we questions, you told can't anytime at voice. you my everything there. think moved end The me app, lots would what doing first -- you can think we X the you about good say on if Vrbo, conversion of XXX% steps as last with to because everybody, come everything these we I year, you, were And if

the to have new start product. working You on move to everything

there. but less in into that a was that, what we than hoped, degradation marketing say investing I'd in that. people obviously line converting slightly did you broadly we of product. terms are marketing doing better when heavily you're So And was as you're because not or it still

is, back tend to. back less of we've that think I up ramping off kind you quickly place the referring spend which product a becomes the on to is you spend very the of because much back So you're as conversion, efficient shoots green where and get clawed the to now

So seen back terms actually is least at than basically the us gaining I've faster tenure, to conversion. same my the ever product of these And virtually in we're gain in much transitions. back one we're levels of of

Now and we can push again. spend in back

a bit, there little get for There wrongly, waiting underspending, a up. you been is spending we will, you've us to lag a bit it's where are for to now the because product of back converting if

happen. seeing will now. just you're less a fully But to or will. it numbers get it a in So time you the if take the more engines it's It's it sequence expect to little operational, we

fewer As I'm you as with mean XQ hope am seeing to I see, we far I Hotels.com good. satisfied lot who of want again, improve. of long. is be still to see XX improve the people rewards but their We're their customers on we're to satisfied. achieve as we days. early what and customers indicators XQ [indiscernible] more to, to hadn't seeing. and had things I rates cycles one burn the product. alluded a engaged starting earn was stamps, cross-shopping Vrbo, say seeing those business think repeat bit It's I'd their goes, we're we're we're the than getting I said, yet, to only are But gotten other a seeing places. earn Vrbo anything who now with And not

signs then in that and opportunity we're they who brands. year. So crossing it for come use shopping people -- millions the and it will to spend back of earned customer our not now seeing and house more for that the with laying we're longer to, But we're across One brands, may used that X or key cash people to opportunity then is starting have because months rent and who a on the take good cross Vrbo, base, of

consistent with about So isn't only we talk -- hoped a a not this people but flip. that's switch twice year. what When you once or timing. all it's you Many travel travel

So and that time, it little building takes a in. we're

looking And not One roll impactful competitive good doing time. will But all reasons. it so then for international key being we're to even but exactly much out. So over detailing when which we're forward more expansion, far, countries

we us and have product, tests we where been for that just lot with new strong, marketing of historically invested have the approaches, historically that stayed there's And have number new et We in back of but strong a reasonably will think as then we opportunity. cetera. were markets into we a push some think will into some haven't opportunity we markets pretty

only not So multiple that. there, the on on where opportunity it international It brand awareness, -- markets have doesn't we on But key. have enhance we lot of think regardless. the be high it's relevant, brands where in that will will one a launching front. exciting We think opportunity we all there's and it's dependent

next from from comes Cowen. Kopelman Our question Kevin

Yes.

any you First into you Or bit? Peter, Could with tenure. thought the to miss step little that. a on us calls. and working question a did ask the on your congrats We'll let want of decision away your on color on all, on timing? process definitely you I your to

the period come as at Yes, et of the sure. right But capture we the off job And ago, tried in of I to go comments. be bigger team. We've the to -- should stared than sure I built I me this take think I to time love we've time, mean, it the made team it have And it it thought they my in more a but people a forward. were. but was a the was and so for a have this it was. that than my I the ship, and bit it idea for forward to and I amazing bigger further, And want we stared next company. I doubts a generation to here. But right take it into hopefully, where and cetera. And Board turn it put I time was progress. sort an I so at is I thought I I going there's group category. it and the build and transition. never I year good my can but us for when started, built love this then I as love to transformation a make much

good done. a way. end for years, have is I'll here I'm the like people then. the all made transformations around be think just and company not felt place just never been right much here think We're never still an do. it to have many a it, our is that company do or brought until on everybody. We're ready it work till like to fortunate we progress May. look, for in -- is fortunate Ariane. it's different so her be But [indiscernible] my how date, and I and are did #XXX in But we I The to the done. There -- know and and to isn't good, have XXX I I'll the like we list we've busting that of time don't things

Vrbo. that flat QX? Naved's and ask anniversary the us Understood. easier fair back be and you as And Could and that just you initial to comp quick an that upgrade like through as what could what walk frame think once the to could Is to a you on if time about platform on through follow-up question growth? get looks pass I then it

Yes.

I anticipate we first out higher consistently Fourth year. think quarter, across than second higher will you higher can than than quarter be assume quarter, this quarter. the growing of third basically,

So growing. continue to we expect

that is, OTA that it's is as have it reason broader can now we we also back to the get I on of think Vrbo do to we is benefit. will, did alluded did if Vrbo. before where it platform test, We to used better. it didn't materially we And to, as for now to the you conversion to even. quickly it this, I as get winning basically lots going are but all winners was And

that as we our take is changing to in move in material and able a And of get winning over multiply alluded we're to ability capacity continue how but and and we lot test go things. way, to, and a speed I both to experiments, again do them humming really our breadth in Vrbo our -- further. So learn to

all tests platforms, all across before. So just we we launch -- tests, that our of have our many we do couldn't now when our brands, and across devices, all

has we out the Vrbo recent to dig that continue So the hole were speed a dig to hole will of the is accelerate. brands, to most the all They of. enhance one That out to improvement of. expect but

expect to we continue that to so And grow.

brand expect continue to We have impact. the back the to investment into

having the effect HCOM and use being One Expedia We effect. to have cross-shopping their expect an the Vrbo customers able of Key cash and

of continue on product rational late situation. our year. off We spend build year. that, back the pulled So do we thought to was purpose that in But faster because really think the we work And in. back back conversion when we're given now still And take we hold it's offense, we best-in-class have throughout all our on own things foot as and that, simple thing to those last And in as the to full stop will I expect to shot the go expect except leaning and on it will marketing we improve category. together. both we of

comes next Golden question Our from Sachs. from Eric Sheridan

I'd a love big to ask more one. picture of

market we about unified to map should to direct with could growth and traffic excited in the made? in about the you about go and versus be initiatives that road think come things investments the retain how product the some remarks and the and of most both thinking should we and you're offerings product drive be you more how of those from elements that about that mixture and way key of customers you, behind need in still One innovative talked market Now the replatforming being prepared about

with -- do Yes. if going on as think I like, backwards. to messaging the a allows to stickiness you our is made. our new But of -- and great say, all do of key to side One things much talk way us forward. our things of faster me capital, to hill, other I we are But virtually in and and terms think mean environment. I investments don't platform money that I But we time, broadly might platform. you investments CRM to CRM and mention within of heard working That calories communicate about efficiently create the customers. that key able to the I'd be we're have be One our migrated product brands of unified there expect to finally say XXX% more

benefits, One key One have key in use we members So key can keep things people merchandise all offerings and whether whether keeps they that we use whether we to sticky. be bonuses, to One the and are have glue One new key, the

every the and the just They that We're product in And get remember, members for discounts day. now many discounts and deeper in than more key. gold. silver have We One get of products. expanding member

said, CRM from them ways, because to experience personalized a am single what lot be on broader can of to product about? that's and or to we've flows, the that it's more excited what -- of every about. filters our are experience, But identity to shopping for now machine that the then to kind added give the now that, and that booking communicate I'm essentially those as or just our new scale. see the just And you for wins keep learn seeing to It's improve content you we there's basic and some new point, important connect and we to post end -- so do obviously, add messaging we've as you really mentioned, to front single improved now a the I modern in we I'd what customer. out, else. them things we effectively can that say goes have we've optimize what customers order into now algorithms but And that new use able, allows in I to whether most we're can experience AI data most as entire do. to what And the you learning of products, That what our like of plumbed the and is at features. us everything come gets best that's what them it's things kinds applied, or and pictures most is platform and best And versions excited a in. and with this

cool we lots features. I mean have of

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excited most So that's about. I'm what

comes question Deutsche next Bank. Lee Our from from Horowitz

accommodations back years, one, foot may how to that couple the informing the health XXXX. to First, headwinds competitive Thanks Maybe competitive time we this Peter, the as set the tenure. congratulations be as get alternative and you there just destinations a continue for provide humming core of strategies your I crazy do rental about of in, guess, taken and is again. past you've macro you off as travel is any your weakness landscape, on been happening, to overall feel some normalize about this think industry? sticking period. plays maybe It's can Vrbo in and again? you've gas Do perhaps congrats that years, of your pricing maybe on evolved you Vrbo some think with in over it secondly, shift continued the how it over patterns all couple And if say, how accomplished through? on then thoughts business has vacation

would crazy backwards. for Yes. couple Sure, been has thoughts. things, Lee. a It years. The a sort I of And your -- working say thanks few of

we've continue to even I habits seen as as shifted. think, obviously, post have healthy VR pandemic be even --

within there's However, VR. like VR

So better. Urban has done

as Urban our competitors to are. know, weighted heavily not some are We you of

squarely largely the urban core side mean more and with product, best Booking situated markets. focused has been our can alternative that's benefiting in at been or We're there. has tell by of Airbnb again, doing from always you that still accommodations. Obviously, think what the we landscape. I evolving VR

Urban. enabled big a year. the made all haven't We this doing we're pivot to that's that things come one decision migrations to by of will But the

on OTA multiunit inventory We that our Vrbo And on is not VR bunch have OTA content brands of Vrbo. we still have not some that on brand. our a is

other I housing So inventory issues we now. just had there's We've finding changing habits. still easier shortage possess. no opportunity already probably to do inventory. more It's And things really think macro market that make the sharing in and of

beach there. resort course, Now house the against participated well a and renting our alternative we've a mountain of is, on about or room hedge our house that, position hotel renting or very good a we as and feel

very needed I about we new we But the think -- feel good to get to a place. product

to space journey. firmly that are think gave I anybody. on now We we don't

think I a -- we have good brand.

we it, have you go get I back on be one places We that if don't have pause, go can where have fast. little. have But you a a an never part improving fast. offense and best-in-class, product the you just to those hurts will doubt is of to to and slow no take again, this do always go And slow

travel we I worry some product product ground product. other product. the have have I supply super is have loyalty we And So out in loyalty And really across to losing usable with about now. any situation. don't our because time, our a don't and And think we're who good think stickiest to we're it. -- competitors spot the so over sticky comes of should I And just accelerate

home that that's I winning We now behind, So we keep got a will the that. just now. have think And combination. we [indiscernible] do to get to product

Bank from Post Anthony from comes question next Our of America.

Julie. for couple a guess I Great.

XX% gave us lodging and You XX growth hotels. for the for

not of of And range or line. double-digit but very solve you a too bookings, range then we what big there. you were second, year, just give can accommodation clear can for any of us have we your last top Vrbo, percent can kind nights so alternative bottom So and are

do said you digit all? for and is the the of on growth to kind margin mean, of is think Or at -- similar saying I kind top you then double line clarify improvement. growth that rates I both? want

Sure.

on think numbers close provided of obviously, could the one, our what get you On the bought time, piece there and do we haven't rate But -- some was I out and probably. is the percent that recently, extrapolation first given some at business. and we when pretty I we haven't company, Vrbo the think -- that were growth

there's . don't give perspective would from I anything So today else a on we out think that front. disclosure that

the On in relatively we're basically we to in rates perspective, grow to, we in guidance XX% line, this XX% growth about, X.X%, you expansion about margin this expansion we calling for year, revenue with relatively are with planning it, that from said points and GBV on year. our is as then have call XX basis which said, line which alluded and

minus I revenue. mean think it's so in I GBV how that's to it that's So or us, think basis points, plus line about I'd would take and both XXX but or relatively how for but it. I

Our next from comes Oppenheimer. Jed from question Kelly

Yes.

marketing to Hotels.com, more your and talk the behind strategy, overall about the I And just you those sort brands brands, lot start to you that? just a watching your see going still marketing of into TV, move? on do comments you're then expenses Just on what's talk that of to One key? by strategy streamlining you pivot still Expedia, Can can about

Thanks, sure. Jed. Yes,

brands yes, advertised. marketing So all we on the believe down brands. used those far and X. It to We're X will the to be the front, in see those more in core U.S., you

as between the And balance to penetrate. trying is be think the advertised find advertised Or to X? we're way they can best still to they as what be I do one? need

we And on our family or that on them forth. be and do, that we're as learning of think continue own see programmatic or -- we seeing together. frankly, help a to can even would in a you're of products which how I about of sort so people try can to So what what it metasearch television, as work is optimize, we in journey

see the So optimum what are. way working constantly drive to those we're to

are -- the and other There more high that driving brand. continuation affinity decisions we But world, for one have what to worth than there do or I will real to bar very and of second will we brands a one. into at X it's lean if maintain heavily think be made and say of will X of there rest we we brand where the will be things that we brand the has or in conscious it's

could of So that brands have lines conceivably and that to us business any all that's any our now of do. especially or not for hard

and take, gift for and things market other that air a is opportunity now. car the packages So a to market and and is other add Hotels.com within our predominant potentially example,

different something And to so about be do air can else. to have we in just quite need decisions Expedia with make or we

really that's about we over how decisions and the and us years. opportunity not big So of we've a the think us those for to in simplify allows ways, for some made some complexity ourselves replicate

but progress, those the the say way communicate things all to Maybe something a best can optimize time about to all and that's we're So that. on working [indiscernible]. the Julie effective, in work are

Yes.

with the are on systems, that, we've streamlining that from of saying and been building all I expenses, so the up expenses. And and like duplicate ramped during out legacy and associated systems, in across system, cloud new maintenance the transformation year, had the that. costs things that we're last still and phase, all board we've obviously, We've where the licensing think

cost And we this deprecate savings said, we find so and as think have the throughout P&L. and of come systems that phase out opportunity we to resources redeploy there's transformation

you'll throughout over in if so sort cost into is to of out sales of will, overhead. capital as we extent board the that crosses first in the year coming see that and you And stab, obviously And our at this across things -- expenditures. so the move

of growth coming to that that's a in the You'll not, not if rates into off, there, also move this we say details represents. associated but least absolute simply see the the you as of going that we did But it. what and will and give and at more quarter we we the you purposely information of as go year some on later that pressure obviously dollars. We're lot with today, details give throughout more

us, the always just I been the excited transformation right that wasn't This build and from provided And be efficiency. of on be to not to that the that standpoint in side experience would we an but Yes. and from we to build them wanted. it we're for things. was just an way did new That's plot This efficient that's has how also also the add cool it. . And opportunity just to

question ISI. from from final Mahaney Evercore Our comes Mark

the it you like out more from on expectations replatforming an already brands, I'm been are I the far? retention, key so ask would Vrbo X brand. business please. but could when Are seen I these if would. these could Or if on or the sure impact have And of Okay. snowball One questions the particularly assume is you of strategy, -- again, these events. the you covered, initiatives, cross-selling, acquisition lay these not, we Have then demand

Yes, Mark, quick I'll give you answer. a

of I to already. think it But stack sort addressed basically the is we an unified transition of of some Vrbo execution just more the thing.

as it and We is to think the in would rest of stack, feature the hole. terms a dug moved I conversion now knew accelerate to it I of new what to mentioned, and us gives we go faster, we learn opportunity We the and when group. Vrbo down. would the the test grow

the brands in the past it shared far the the all to so riding winners about that. And get have we digging that on We're now we do gets that been to We to par, opportunity we back have hole. We of places out accelerate other and forth. Vrbo borrow. benefit the did but to of it testing the didn't other found same opportunities as rail testing,

excited the that get to about the progression through So of product, we're to it but bad go to the good. had

people, thought goes, customers indicators. you more we One if that Yes, of XX stamps Yes, who I old customers mentioned, seeing Hotels.com about we there repeat more will, had key and less good is far had we're like from any shopping. As than very system as cross this benefit. from who in feel the benefit pools also would early our certain

windows the them they to want more millions of cash But what coming and earned percentage of do Vrbo book that [indiscernible] as once for than to on with a cycles of rarely also the just key or small see. mentioned has while have more twice and year. people they're people booking that's then and Now a that back have Vrbo, we I and benefit, One

value So realized get back to -- to and back the -- in. that use expect we've people that One this up be more cash as with those see dream. [indiscernible] why to needs that's they we've I've cross-shopping we as come said like they to value got across key That's other those brands built now

cash to Vrbo, that One members those month, cycles their key on we've which a seen. But also do Expedia of and And getting Hotels.com once aren't use course, again, twice every people year.

that's a we're we're and but we get time. again, right and share So seeing we the for And people more to use of all early good be keep pushing of more as they Like our in, of more as a for. products, -- it's what get it's we'll and building again, we more more them as going and wallet capture them. from to That's it's all going thing slow us keep be but I'm great, over why excited. signals, build, to sticky

thank everybody. And you,

that operator. right? the last was I think Is that question,

correct. That's

you, care. Thank in you questions, see Okay. everybody. we'll Take your and Appreciate May.

That concludes today's call.

disconnect your a and may nice You day. have now lines,