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Speaker 1: Now Expedia CEO Peter Ker, And Peter, we do have

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Speaker 1: to start with the reaction. The stock is down seventeen percent.

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Speaker 1: Is the concern from the market justified about the growth

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Speaker 1: trajectory of your company?

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Speaker 2: No, absolutely not.

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Speaker 3: I mean we basically delivered what we told the market

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Speaker 3: we were going to deliver, and in the quarter, you know,

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Speaker 3: just past the quarter, we launched our new big rewards program,

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Speaker 3: We've made huge technical advancements, and we reaffirmed our yearly guidance.

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Speaker 3: So not sure what the market was looking for. Maybe

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Speaker 3: they're looking for concerns about the consumer, but basically we

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Speaker 3: were on our plan and really excited about the back

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Speaker 3: half of the year. So we were you know, other

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Speaker 3: than the chart you have buying me, we're very excited

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Speaker 3: about where we are.

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Speaker 1: So, Peter, what's the story, you know, how do you

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Speaker 1: see this travel season having played out? And what are

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Speaker 1: your signs into the rest of the year about bookings

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Speaker 1: and the health of the consumer, because it is what

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Speaker 1: the stream wants to know about, as you note.

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Speaker 3: Yeah, yeah, absolutely, no, I mean when we look ahead

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Speaker 3: at our pacings for the year up versus last year

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Speaker 3: and prior periods, all prior periods basically we've had you know,

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Speaker 3: very good there's been very high interest in international travel.

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Speaker 3: What you've seen is the travelers moving around a bit.

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Speaker 3: So you see pockets that might be retreating a little bit,

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Speaker 3: but other pockets advancing. So Asia is very strong, Latin

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Speaker 3: America is very strong. The West US, North America, and

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Speaker 3: Western Europe you know, have slowed somewhat, but they've been stable.

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Speaker 3: So basically customers are moving around. Cities are very popular,

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Speaker 3: International cities are very popular. International travel has definitely equipsed

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Speaker 3: domestic in the rebound. Again, it's sort of this COVID

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Speaker 3: unroll that we've seen again and again. People go where

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Speaker 3: the next thing opens up or where they haven't been

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Speaker 3: able to go.

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Speaker 2: So domestic was very.

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Speaker 3: Big, then international got big. Now Asia's coming up because

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Speaker 3: Asia is opening up. So we see it in waves,

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Speaker 3: and you know, as we look out, the consumer is

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Speaker 3: very strong in travel. Demand remains high. There's not much

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Speaker 3: evidence of really at all of ADRs. You know, pricing dropping, Yes,

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Speaker 3: you can find that domestic air in North America the

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Speaker 3: prices have come down a little, but in international.

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Speaker 2: Air they're still very elevated.

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Speaker 3: And international hotel hotel generally has been very stable in ADRs,

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Speaker 3: so there really isn't much evidence of a consumer lapse

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Speaker 3: here in any way.

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Speaker 1: Peter, you're joining us from London. In fact, you're sitting

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Speaker 1: in the chair that I used to sit in when

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Speaker 1: I was at QBS. It's a nice chair. Is there

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Speaker 1: a sort of differentiation between the health in different markets

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Speaker 1: of a London consumer, a European consumer, and what we're

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Speaker 1: seeing here in the United States?

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Speaker 3: Well, I think you know again you're seeing, first of all,

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Speaker 3: there's a lot of people from the United.

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Speaker 2: States in London right now.

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Speaker 3: You know, Europe has been a popular destination for North

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Speaker 3: American travelers this summer because last summer they weren't traveling

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Speaker 3: as much internationally. So now every city in Europe is

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Speaker 3: full of Americans, and likewise, European travelers are traveling to

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Speaker 3: other international cities. So you're seeing a lot of that.

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Speaker 3: But the health of the consumer is strong. You know,

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Speaker 3: we still haven't really seen it even at the lower ends.

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Speaker 3: It doesn't mean there isn't you know, you can't find

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Speaker 3: a pocket of a city or a destination that's slightly

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Speaker 3: lower for example, mountain destinations beach destinations are slightly less

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Speaker 3: popular this year in favor of big international cities. But

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Speaker 3: it doesn't mean that travelers less willing to travel or spend.

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Speaker 3: It just means they're moving their dollars around and that

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Speaker 3: creates small pockets that might you know, where you might

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Speaker 3: see some reduced interest, but that's from super high elevated

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Speaker 3: interest across most of these markets. So this is you know,

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Speaker 3: a slight taming and a few spots and strength and

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Speaker 3: other spots that make up for it.

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Speaker 1: You've been doing some investment in technology, technological streamlining behind

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Speaker 1: the scenes, or the sort of loyalty and rewards program.

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Speaker 1: How do you see that driving your business in the

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Speaker 1: near term but also longer term as well.

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Speaker 2: Yeah, it's a huge investment for us.

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Speaker 3: I mean, first of all, we've invested over the last

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Speaker 3: few years in a huge technological transformation to bring all

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Speaker 3: our stacks together, all our brands together on one technology

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Speaker 3: so we could go faster, innovate faster for the consumer,

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Speaker 3: and really our loyalty. Our new loyalty rollout of one

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Speaker 3: Key is a great example of all of that coming together,

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Speaker 3: where now our big three brands will be under one

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Speaker 3: loyalty program, so Expedia, Hotels, dot Com and Verbo people

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Speaker 3: can earn rewards, which is basically like money, spend it

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Speaker 3: on any product they want across all of those brands,

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Speaker 3: and it's it's the culmination of a bunch of work

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Speaker 3: that's been going on for more than two years to

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Speaker 3: really change our future. And our idea is a simple one,

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Speaker 3: which is we want to build the best products that

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Speaker 3: consumers are loyal to get them into our loyalty plans,

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Speaker 3: get them into our app where they can have the

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Speaker 3: best experience, see the most discounts, the most rewards for

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Speaker 3: their travel, and that that will create a sticky relationship

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Speaker 3: with our consumers and they'll come back direct to us.

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Speaker 3: And we've seen it again and again in every industry.

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Speaker 3: We think there's huge opportunity for innovation and travel and

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Speaker 3: we think we're doing the most with technology with AI

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Speaker 3: and machine learning to personalize and all of those pieces

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Speaker 3: to really create the next step forward. You know, we

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Speaker 3: invented the category and we're trying to reinvent the category

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Speaker 3: for the next you know, decade or two with new product,

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Speaker 3: better consumer proposition, and really a much stickier, less just

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Speaker 3: transactional kind of product that travel used to be.

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Speaker 1: So bear with me on this one, but in metas earnings.

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Speaker 1: We saw evidence that AI recommendations boosted their AD sales.

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Speaker 1: As an example, give me some tangible examples of how

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Speaker 1: artificial intelligence aids the consumer on your platform but also

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Speaker 1: just helps you guys make more money.

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Speaker 3: Yeah, so we use it really everywhere we can, and

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Speaker 3: that doesn't mean everywhere yet, but throughout the product from

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Speaker 3: everything from optimizing the pictures you see. You know, you

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Speaker 3: might be traveling with a family or kids and we

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Speaker 3: will show you pools, or maybe you're traveling by yourself

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Speaker 3: or a couple and we might show you bars or

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Speaker 3: rooms or other things like we optimize that, we opt

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Speaker 3: deze how you search. We use machine learning to better

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Speaker 3: move the pieces around the page so you're seeing the

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Speaker 3: things that are most relevant to you these most easily,

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Speaker 3: or to simplify how you shop, so you might know

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Speaker 3: that some rooms are called the Queen size Superior, some

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Speaker 3: rooms are called.

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Speaker 2: The King size, some of the city view.

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Speaker 3: You know, we've done all the work to compare all

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Speaker 3: those things so that you can easily see them side

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Speaker 3: by side and understand, you know, using AI in m

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Speaker 3: O understand what the options really mean and what the

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Speaker 3: differences are. So we're using it in all kinds of

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Speaker 3: simple and elevated ways. We've also put shat GPT into

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Speaker 3: our iOS app. We just launched it in our Android app.

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Speaker 3: So we're giving people that utility if they want to

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Speaker 3: use it for discovery, and then we save products that

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Speaker 3: they've looked at and they can go compare them later.

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Speaker 3: So there's lots of places we use it, but some

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Speaker 3: of them are quite simple and straightforward, you know, personalized

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Speaker 3: search and other things, and some of them are the

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Speaker 3: latest large language models and all of those opportunities that

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Speaker 3: are still ahead of us.

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Speaker 1: All right, Expediacy op de Kurn, thank you so much

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Speaker 1: for your time