Booking Holdings Inc. Q3 FY2024 earnings call

Key Initiatives - Growing alternative accommodations: Booking.com's alternative accommodations room night growth was 14%, with a 35% global mix, and listings reached $7.9 million, up ~10% YOY. - Connected trip vision: Connected Trip transactions increased over 40% YOY, with merchant mix at 65% of total gross bookings. - AI capabilities: Booking.com launched AI trip planner and smart filter, used Gen AI for partner responses; Priceline's Penny had over 3 million interactions; Agoda implemented over 120 GenAI use cases; Kayak and OpenTable also integrated AI. - Progress in Asia: Asia had double-digit room night growth, with the region being strategically important due to size, growth potential, and diversified business across countries.

In the third quarter, travelers booked just under 300 million room nights across Booking Holdings' platforms, a YOY increase of 8%. Revenue was $8 billion, up 9% YOY, and adjusted EBITDA was $3.7 billion, up 12% YOY. Regionally, Europe had high single-digit room night growth, Asia had double-digit growth, and the US had relatively stable growth. Alternative accommodations at Booking.com saw 14% room night growth, with a 35% global mix of alternative accommodation room nights. Airline tickets booked on platforms increased 39% in Q3, and rental car days booked grew 16%, both accelerating from Q2.

Fourth Quarter - Room night growth expected 6%-8%, gross bookings 7%-9%, revenue 7%-9%, adjusted EBITDA $1.6B-$1.65B (9%-13% growth). ### Full-Year - Gross bookings expected to increase ~8%, up from prior expectation of faster than 6%. - Revenue growth just below 10%, better than prior expectation of faster than 7%. - Adjusted EBITDA growth 13%-14%, adjusted EPS expected in high-teens.

Risks - Geopolitical uncertainties could impact travel demand. - Dependence on the health of the travel industry and maintaining competitive position.

Q: How does AI translate to financials?

A: AI is early-stage but expected to drive efficiencies, acquisition, retention, satisfaction, and improve operational efficiency.

Q: Was Asia's mix post-COVID higher than pre-COVID?

A: Asia growth driven by Agoda's localization efforts, with room for growth in regions lacking alternative accommodation inventory.

Q: What changed in Europe to drive outperformance?

A: Reacceleration in August, expansion of booking window, and strong proposition.

Q: How is marketing ROI?

A: Higher ROIs due to continuous optimization, with social media spend showing progress.

Q: Is alternative accommodations volume incremental?

A: Likely brings new travelers, especially in Europe, tied to the connected trip vision.

Q: Plans for U.S. market share gains?

A: Working on simplifying for properties and improving brand awareness.