1 00:00:00,080 --> 00:00:02,639 Speaker 1: Delighted to say we're joined now by Expedy a CEO 2 00:00:03,120 --> 00:00:05,760 Speaker 1: Peter Kern, and Peter is interesting to hear what Michael 3 00:00:05,840 --> 00:00:09,319 Speaker 1: Leary said there, you know, the challenges alongside meeting What 4 00:00:09,400 --> 00:00:13,040 Speaker 1: he sees is demand. What kind of demand do you see? 5 00:00:14,000 --> 00:00:16,480 Speaker 2: Yeah, well we've seen Thanks ed for having me first 6 00:00:16,480 --> 00:00:19,720 Speaker 2: of all, and I enjoyed the clip. What we see 7 00:00:19,840 --> 00:00:23,279 Speaker 2: is steady demand, I would say, I think what he's 8 00:00:23,320 --> 00:00:26,360 Speaker 2: talking about is that we are seeing some shifts as 9 00:00:26,920 --> 00:00:30,880 Speaker 2: customers are looking for lower cost carriers over the main airlines, 10 00:00:31,440 --> 00:00:34,000 Speaker 2: So he's probably benefiting from that and seeing a little 11 00:00:34,000 --> 00:00:36,199 Speaker 2: bit of a move in his direction. I think overall 12 00:00:36,320 --> 00:00:40,839 Speaker 2: air demand in Western Europe and in the North America, 13 00:00:40,840 --> 00:00:44,560 Speaker 2: et cetera, is pretty steady, but we're seeing generally priced 14 00:00:44,560 --> 00:00:48,400 Speaker 2: declines across the market. So I think what he's discussing 15 00:00:48,400 --> 00:00:51,040 Speaker 2: as a shift in his favor, but it's not necessarily 16 00:00:52,520 --> 00:00:55,240 Speaker 2: that that's true for everything across the board. 17 00:00:55,320 --> 00:00:58,400 Speaker 1: Peter. What fascinates me about exped here in the portfolio 18 00:00:58,560 --> 00:01:02,800 Speaker 1: of brands and platforms is the granularity of your data. 19 00:01:03,440 --> 00:01:07,320 Speaker 1: You know, you can tell me the demographics of people 20 00:01:07,360 --> 00:01:09,759 Speaker 1: that are or are not traveling, where they're traveling too. 21 00:01:10,880 --> 00:01:13,679 Speaker 1: Right now, what does does gen Z look like? I 22 00:01:13,720 --> 00:01:16,600 Speaker 1: know that's a very specific question, but who's traveling and 23 00:01:16,600 --> 00:01:21,200 Speaker 1: particularly how have you seen the younger traveler behave in 24 00:01:21,200 --> 00:01:22,200 Speaker 1: the most recent quarter. 25 00:01:23,640 --> 00:01:26,680 Speaker 2: Yeah, I think we don't tend to break it that way, 26 00:01:26,720 --> 00:01:29,360 Speaker 2: but I can tell you that the travelers, you know, 27 00:01:29,400 --> 00:01:33,600 Speaker 2: that user travel has remained strong. Corporate still, you know, 28 00:01:33,800 --> 00:01:36,600 Speaker 2: still not back to pre COVID levels. You see a 29 00:01:36,680 --> 00:01:39,679 Speaker 2: lot of differences geography to geography. You know, we still 30 00:01:39,720 --> 00:01:43,240 Speaker 2: have Asia is still opening up to a certain extent, 31 00:01:43,280 --> 00:01:46,240 Speaker 2: which has been a tailwind in Asia and Latin America, 32 00:01:46,280 --> 00:01:49,360 Speaker 2: whereas the West has sort of normalized, I would say, 33 00:01:50,040 --> 00:01:53,040 Speaker 2: and in general, by and large, you know, people have 34 00:01:53,040 --> 00:01:57,040 Speaker 2: been waiting for travelers to trade down for cheaper alternatives. 35 00:01:57,200 --> 00:01:58,720 Speaker 2: We haven't seen that very much. 36 00:01:58,800 --> 00:01:59,040 Speaker 1: Now. 37 00:01:59,240 --> 00:02:01,000 Speaker 2: It's true that at the lower end of the market 38 00:02:01,040 --> 00:02:03,400 Speaker 2: you see it a little bit more. But as you 39 00:02:03,440 --> 00:02:06,880 Speaker 2: know it, we introduced our new grand loyalty program called 40 00:02:06,960 --> 00:02:09,519 Speaker 2: one Key, and what we're seeing is people get accustomed 41 00:02:09,560 --> 00:02:11,920 Speaker 2: to that, is they're actually trading up when they have 42 00:02:12,080 --> 00:02:14,200 Speaker 2: value that they can use to get a better room. 43 00:02:14,360 --> 00:02:17,440 Speaker 2: If they have one key cash which is our rewards currency, 44 00:02:17,720 --> 00:02:20,480 Speaker 2: they trade up to a better room or a better experience, 45 00:02:20,600 --> 00:02:21,960 Speaker 2: or use that for something better. 46 00:02:22,120 --> 00:02:24,960 Speaker 1: Alongside sorry to interrupted, I was going to say, alongside rewards, 47 00:02:25,000 --> 00:02:29,239 Speaker 1: you've also focused kind of on content creation and influences 48 00:02:29,280 --> 00:02:32,239 Speaker 1: on social media. Has that given any sort of tangible 49 00:02:32,240 --> 00:02:33,400 Speaker 1: boost to your sales? 50 00:02:34,560 --> 00:02:37,160 Speaker 2: Yeah, well we're you know, we're using all the latest 51 00:02:37,200 --> 00:02:40,160 Speaker 2: marketing and reach tools we can. I mean, for us, 52 00:02:40,240 --> 00:02:43,120 Speaker 2: it's an education process. When we watch something like one Key, 53 00:02:43,400 --> 00:02:45,520 Speaker 2: we want people to understand it. When where you have 54 00:02:45,639 --> 00:02:47,760 Speaker 2: you know, one key now in Verbo, which is the 55 00:02:47,800 --> 00:02:50,960 Speaker 2: only place you can get rewards and vacation rentals, we 56 00:02:51,000 --> 00:02:53,639 Speaker 2: want to make sure that people that are interested in 57 00:02:53,720 --> 00:02:57,240 Speaker 2: vacation rentals understand and appreciate the benefit. So sometimes, you know, 58 00:02:57,280 --> 00:03:00,320 Speaker 2: old fashioned advertising isn't the best way, and it's to 59 00:03:00,360 --> 00:03:03,200 Speaker 2: reach people with more information through influencers and such. But 60 00:03:03,560 --> 00:03:05,280 Speaker 2: you know you referred to all the data we have 61 00:03:05,400 --> 00:03:08,000 Speaker 2: on gen Z. That's really what's powering our product now 62 00:03:08,040 --> 00:03:10,320 Speaker 2: as we make the product better and better. The fact 63 00:03:10,360 --> 00:03:12,919 Speaker 2: that we have all that data is what allows us 64 00:03:12,960 --> 00:03:15,480 Speaker 2: to now take friction out of the process, use AI 65 00:03:15,560 --> 00:03:18,680 Speaker 2: and machine learning to make the experience better, in the 66 00:03:18,680 --> 00:03:20,799 Speaker 2: product better. And that's really where we're focused. 67 00:03:21,120 --> 00:03:24,320 Speaker 1: It's the Expedia that the consumer and our audience around 68 00:03:24,320 --> 00:03:26,440 Speaker 1: the world knows, and then there's the B to B business. 69 00:03:26,680 --> 00:03:29,320 Speaker 1: When you look at your growth trajectory going forward, what 70 00:03:29,480 --> 00:03:31,480 Speaker 1: is the splitting contribution of those two. 71 00:03:32,560 --> 00:03:34,079 Speaker 2: Yeah, Well, B to B it's had a very good 72 00:03:34,160 --> 00:03:36,560 Speaker 2: run for us, and in part, as I mentioned earlier, 73 00:03:36,800 --> 00:03:38,760 Speaker 2: it has to do with the exposure of the business, 74 00:03:38,760 --> 00:03:41,120 Speaker 2: which is exposed more to Asia and some of the 75 00:03:41,160 --> 00:03:44,680 Speaker 2: markets that have come back more recently post COVID, but 76 00:03:44,800 --> 00:03:47,440 Speaker 2: also we've been building that business, building the technology in 77 00:03:47,440 --> 00:03:50,840 Speaker 2: that business, expanding our customer base. So that business has 78 00:03:50,840 --> 00:03:53,880 Speaker 2: seen you know, growth in the twenties for the last 79 00:03:53,920 --> 00:03:58,160 Speaker 2: several years, twenty percent plus. Top line growth last quarter 80 00:03:58,320 --> 00:04:02,640 Speaker 2: was closer to twenty six twenty seven, but we expect 81 00:04:02,640 --> 00:04:04,880 Speaker 2: that to continue. It is a smaller part of our 82 00:04:04,920 --> 00:04:07,520 Speaker 2: overall business, and as you know, we've done a lot 83 00:04:07,560 --> 00:04:09,360 Speaker 2: of work in the last couple of years on our 84 00:04:09,360 --> 00:04:12,840 Speaker 2: core consumer business with one key with the launch of 85 00:04:12,880 --> 00:04:16,919 Speaker 2: new products and capabilities. So we expect our bigger business 86 00:04:16,960 --> 00:04:20,599 Speaker 2: to accelerate now, but the B to B business probably 87 00:04:20,600 --> 00:04:24,440 Speaker 2: has slightly more tailwinds still for a bit. 88 00:04:24,760 --> 00:04:27,160 Speaker 1: Pieter very very quick Friday, your stock took off like 89 00:04:27,200 --> 00:04:29,920 Speaker 1: a rocket, biggest jump since November twenty twenty. You must 90 00:04:29,960 --> 00:04:30,720 Speaker 1: be happy about that. 91 00:04:31,720 --> 00:04:33,919 Speaker 2: I was. I don't pretend to understand the markets, but 92 00:04:33,960 --> 00:04:35,920 Speaker 2: we've just been shipping away at it, and I think 93 00:04:35,920 --> 00:04:38,200 Speaker 2: the market's starting to understand that all the work we've 94 00:04:38,200 --> 00:04:40,080 Speaker 2: done has set us up in a better way to 95 00:04:40,120 --> 00:04:42,680 Speaker 2: go forward than most of our competitors, and that's what 96 00:04:42,760 --> 00:04:45,560 Speaker 2: we're really excited about. So I see the market recognize it. 97 00:04:45,880 --> 00:04:47,960 Speaker 1: Expedia ceopiece, Can goods catch up?