1 00:00:02,520 --> 00:00:08,920 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Consumer sentiment has been 2 00:00:08,960 --> 00:00:10,959 Speaker 1: dour for several months, and we got an update on 3 00:00:11,000 --> 00:00:14,520 Speaker 1: the University of Michigan's numbers. They are sinking now to 4 00:00:14,640 --> 00:00:16,880 Speaker 1: a two year low. This has the Fed's preferred measure 5 00:00:16,920 --> 00:00:21,279 Speaker 1: of inflation starts to tick up, consumer spending coming in 6 00:00:21,320 --> 00:00:24,560 Speaker 1: weaker than expected in that same report. For more insights 7 00:00:24,560 --> 00:00:27,280 Speaker 1: into how the consumer is holding up, specifically through the 8 00:00:27,360 --> 00:00:30,280 Speaker 1: lens of travel, let's bring Matt Goldberg into the conversation. 9 00:00:30,440 --> 00:00:34,120 Speaker 1: He's the CEO of the travel platform trip Advisor, which, well, 10 00:00:34,159 --> 00:00:36,120 Speaker 1: you can book a hotel, you can book airflight, you 11 00:00:36,120 --> 00:00:38,879 Speaker 1: can book a restaurant, and so far from what I've 12 00:00:38,880 --> 00:00:41,600 Speaker 1: heard from other companies, those bookings have actually held up 13 00:00:41,600 --> 00:00:43,240 Speaker 1: pretty well. Are they holding up on your site? 14 00:00:43,280 --> 00:00:46,239 Speaker 2: Well, the travel consumer wants to continue to travel, and 15 00:00:46,280 --> 00:00:50,559 Speaker 2: the discretionary category is one that they're protecting, particularly around experiences, 16 00:00:50,560 --> 00:00:52,559 Speaker 2: because they want to have the next experience and not 17 00:00:52,600 --> 00:00:55,680 Speaker 2: necessarily buy the next thing. So the travel consumer's been strong, 18 00:00:55,800 --> 00:00:58,640 Speaker 2: and we've seen post pandemic, there's always going to be something, 19 00:00:59,000 --> 00:01:00,960 Speaker 2: and the consumer is going to continue to travel. 20 00:01:01,200 --> 00:01:03,360 Speaker 1: What are they Where are they going? I guess are 21 00:01:03,360 --> 00:01:06,440 Speaker 1: they taking like these big sort of bucket list trips 22 00:01:06,480 --> 00:01:08,679 Speaker 1: to you know, some far from places of the earth, 23 00:01:08,720 --> 00:01:10,240 Speaker 1: or are they just saying, you know, I'm just going 24 00:01:10,319 --> 00:01:12,080 Speaker 1: to you know, drive a couple of states over and 25 00:01:12,120 --> 00:01:13,119 Speaker 1: you know, go to the state park. 26 00:01:13,240 --> 00:01:14,319 Speaker 3: Well, it's everywhere. Now. 27 00:01:14,319 --> 00:01:17,120 Speaker 2: There may be some bifurcation between the upper end and 28 00:01:17,160 --> 00:01:19,479 Speaker 2: the mid and lower ends, and you might make different choices. 29 00:01:19,520 --> 00:01:22,520 Speaker 2: But clearly internationals holding up well, we see long haul 30 00:01:22,520 --> 00:01:24,360 Speaker 2: holding up well, We've heard that from some of the airlines. 31 00:01:25,240 --> 00:01:26,360 Speaker 3: But also if you're. 32 00:01:26,240 --> 00:01:29,520 Speaker 2: Somebody whose pocketbook might get pinched with some of the uncertainty, 33 00:01:29,920 --> 00:01:31,679 Speaker 2: you may travel, but you may think about where am 34 00:01:31,720 --> 00:01:32,040 Speaker 2: I going to go? 35 00:01:32,120 --> 00:01:34,640 Speaker 3: Make closer to home a few fewer days. 36 00:01:34,680 --> 00:01:36,839 Speaker 2: You may think about how much you want to spend, 37 00:01:37,120 --> 00:01:40,080 Speaker 2: but you're still going to prioritize, preserve, and defend the 38 00:01:40,120 --> 00:01:41,280 Speaker 2: ability to have that experience. 39 00:01:41,360 --> 00:01:43,759 Speaker 1: Is there an argument to be made that during bad 40 00:01:43,800 --> 00:01:48,080 Speaker 1: economic times sometimes people still make sure they have enough 41 00:01:48,120 --> 00:01:50,480 Speaker 1: money to travel because it ends up being maybe one 42 00:01:50,480 --> 00:01:52,400 Speaker 1: of the few things that you know makes them happy 43 00:01:52,520 --> 00:01:54,080 Speaker 1: during bad times. Is there credence to that? 44 00:01:54,160 --> 00:01:55,840 Speaker 2: I think that's true. I want to be I want 45 00:01:55,840 --> 00:01:58,760 Speaker 2: to be logical about this. Our industry is not immune 46 00:01:58,840 --> 00:02:01,520 Speaker 2: to the macrol at all, and the consumer, when their 47 00:02:01,520 --> 00:02:04,280 Speaker 2: personal balance sheet is impacted, may make different choices. 48 00:02:04,400 --> 00:02:05,520 Speaker 3: But I think you're right. 49 00:02:05,640 --> 00:02:10,000 Speaker 2: They are defending experiences, travel, things to do, things that 50 00:02:10,080 --> 00:02:12,440 Speaker 2: make them feel like they can get out and have 51 00:02:12,600 --> 00:02:16,079 Speaker 2: fun and learn something and see the world. 52 00:02:16,280 --> 00:02:17,440 Speaker 3: That's something they want to defend. 53 00:02:17,520 --> 00:02:20,520 Speaker 1: But a few weeks ago we got some warnings out 54 00:02:20,520 --> 00:02:22,440 Speaker 1: of the airlines, and we're going to get another update 55 00:02:22,520 --> 00:02:24,680 Speaker 1: next week as one of the major airlines. As an 56 00:02:24,680 --> 00:02:29,040 Speaker 1: investor day, they've lowered their expectations for the year, specifically 57 00:02:29,120 --> 00:02:30,560 Speaker 1: when it comes to leisure travel. 58 00:02:31,000 --> 00:02:32,880 Speaker 3: Yeah, and you saw the same things that I saw. 59 00:02:32,880 --> 00:02:35,079 Speaker 2: They talked about Q one, but they were more confident 60 00:02:35,120 --> 00:02:36,360 Speaker 2: about the end of the year and they showed some 61 00:02:36,400 --> 00:02:40,320 Speaker 2: bifurcation perhaps talked about long haul and premium and some 62 00:02:40,360 --> 00:02:42,079 Speaker 2: of the things that are happening there. You know, one 63 00:02:42,080 --> 00:02:44,640 Speaker 2: of the things that we do is we built our 64 00:02:44,680 --> 00:02:48,480 Speaker 2: business around experiences, and we are focused on making sure 65 00:02:48,480 --> 00:02:50,600 Speaker 2: that no matter what somebody wants to do, whether it's 66 00:02:50,639 --> 00:02:52,720 Speaker 2: close to home or far away, we can serve them. 67 00:02:52,800 --> 00:02:54,920 Speaker 2: Because you don't have to get on an airplane to 68 00:02:54,919 --> 00:02:56,880 Speaker 2: have an experience. You can get in the car. You 69 00:02:56,919 --> 00:02:59,040 Speaker 2: can do it down the road and you can experience 70 00:02:59,080 --> 00:03:02,440 Speaker 2: the world, whether it's we're something to do, we're you know, 71 00:03:03,000 --> 00:03:05,120 Speaker 2: doing a cultural immersion in your own town. 72 00:03:05,240 --> 00:03:07,160 Speaker 1: Have you had any discussions with your team or some 73 00:03:07,200 --> 00:03:10,440 Speaker 1: of your colleagues in the industry about a potential shift 74 00:03:10,440 --> 00:03:13,280 Speaker 1: and behavior because of what's going on in Washington. There's 75 00:03:13,320 --> 00:03:16,600 Speaker 1: been anecdotal stories we should point out of people either 76 00:03:17,440 --> 00:03:21,280 Speaker 1: postponing overseas travel or overseas travelers postponing trips to the 77 00:03:21,400 --> 00:03:24,880 Speaker 1: US because of concerns about the geopolitical relationships going on 78 00:03:24,960 --> 00:03:25,200 Speaker 1: right now. 79 00:03:25,240 --> 00:03:28,240 Speaker 2: Well, obviously uncertainty in these things can can factor into 80 00:03:28,280 --> 00:03:30,960 Speaker 2: all kinds of choices. But you know, I think that 81 00:03:31,040 --> 00:03:33,280 Speaker 2: the traveler still wants to travel, and we'll serve them 82 00:03:33,280 --> 00:03:35,840 Speaker 2: wherever they want to go, whether it's an iconic place 83 00:03:36,240 --> 00:03:38,840 Speaker 2: in a famous country or closer to home, something to 84 00:03:38,880 --> 00:03:42,560 Speaker 2: do that's immersive and experience, like a farm to table experience. 85 00:03:42,640 --> 00:03:44,360 Speaker 3: Yeah, they will go and do that. 86 00:03:44,440 --> 00:03:46,600 Speaker 2: And that's how we're trying to connect to that traveler 87 00:03:46,640 --> 00:03:47,920 Speaker 2: and serve them wherever they want to go. 88 00:03:47,960 --> 00:03:52,240 Speaker 1: So how do you keep trip advisor itself competitive? I mean, 89 00:03:52,680 --> 00:03:54,520 Speaker 1: this is a very competitive business with what you do. 90 00:03:54,720 --> 00:03:57,040 Speaker 1: I saw you actually had a deal that I just 91 00:03:57,080 --> 00:03:59,920 Speaker 1: read about with perplexity on the AI front, the idea 92 00:04:00,080 --> 00:04:02,560 Speaker 1: of making it easier for people to plan out things, 93 00:04:02,600 --> 00:04:04,600 Speaker 1: and we've seen a lot of people start to plan 94 00:04:04,680 --> 00:04:06,720 Speaker 1: out their vacations using various AI tools. 95 00:04:06,880 --> 00:04:07,680 Speaker 3: Absolutely well. 96 00:04:07,720 --> 00:04:09,960 Speaker 2: Our vision is to be the most trusted source for 97 00:04:10,040 --> 00:04:13,520 Speaker 2: travel and experiences. And as people start to experiment with 98 00:04:13,560 --> 00:04:16,680 Speaker 2: technology and use AI, they want to find better experiences. 99 00:04:16,760 --> 00:04:19,760 Speaker 2: So in discovery, they want to plan more effectively, so 100 00:04:20,000 --> 00:04:22,240 Speaker 2: seamlessly and quicker and not have to go to lots 101 00:04:22,240 --> 00:04:26,040 Speaker 2: of different places. They want trusted content and information, and 102 00:04:26,080 --> 00:04:28,600 Speaker 2: we think AI will be a tailwind for us because 103 00:04:28,720 --> 00:04:31,640 Speaker 2: we've got a trusted brand, we've got content and data, 104 00:04:31,720 --> 00:04:33,520 Speaker 2: and we sit in the ecosystem in a place where 105 00:04:33,520 --> 00:04:35,359 Speaker 2: we want to guide you and then connect you to 106 00:04:35,400 --> 00:04:38,080 Speaker 2: marketplaces where as you said, you can book a restaurant 107 00:04:38,240 --> 00:04:43,240 Speaker 2: and experience a hotel and have that moment that is transformative. 108 00:04:42,600 --> 00:04:43,560 Speaker 3: If people are looking. 109 00:04:43,720 --> 00:04:45,839 Speaker 1: If times are hard and people are looking for more 110 00:04:45,880 --> 00:04:48,600 Speaker 1: discounts or deals, can they find that there yet? 111 00:04:48,680 --> 00:04:49,320 Speaker 3: Absolutely well. 112 00:04:49,360 --> 00:04:51,520 Speaker 2: The history of trip Advisor is clearly we've been a 113 00:04:51,520 --> 00:04:54,159 Speaker 2: place you can go to compare pricing and We think 114 00:04:54,200 --> 00:04:57,480 Speaker 2: that that's very interesting. It's also a place where we 115 00:04:57,520 --> 00:04:59,560 Speaker 2: want to reward members who come to us. 116 00:04:59,440 --> 00:05:00,640 Speaker 3: And book one of these things. 117 00:05:00,800 --> 00:05:02,800 Speaker 2: We're going to put a membership together to reward you, 118 00:05:02,880 --> 00:05:04,920 Speaker 2: so when you book, you get rewards in a wallet 119 00:05:04,960 --> 00:05:07,719 Speaker 2: that you can use across categories. So we actually think 120 00:05:08,080 --> 00:05:10,200 Speaker 2: that that will be very attractive and get many more 121 00:05:10,200 --> 00:05:11,279 Speaker 2: people coming to us direct. 122 00:05:11,400 --> 00:05:14,320 Speaker 1: Matt, appreciate you stopping by. Matt Goldberg is the CEO 123 00:05:14,480 --> 00:05:15,440 Speaker 1: of trip Advisor.