The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Lee Horowitz - Deutsche Bank AG - Analyst
: Great, thanks for the question. Maybe, starting with Glenn on Generative AI. Thanks for the details on all the products you guys have rolling out
there. But I guess how do you contextualize the risks associated with perhaps greater competition from agentic platforms. We have massive buckets
of investment aimed at building functional AI agents that could circumvent listings on booking go-direct to hotels. Any more thoughts that would
be helpful, and then one follow-up if I could.
Question: Lee Horowitz - Deutsche Bank AG - Analyst
: Makes sense, thanks. And maybe just to follow up on alternative accommodations. I guess, it's fairly clear you guys are a share gainer at this point.
I wonder if you could maybe unpack a bit more on a regional basis. Where you see the biggest contributions to your sort of consistent teams growth
rate and the alternative accommodations business in '24? What regions do you perhaps expect to invest most behind the '25? And what do you
think is resonating so strongly with the consumer to -- that allows you guys to really outpace the competitors at this point?
Question: Lee Horowitz - Deutsche Bank AG - Analyst
: Helpful, thank you both.
Question: Mark Mahaney - Evercore ISI - Analyst
: Okay, let's see. I'd like to ask about airlines and then operator. On the airlines, that growth you had, you talked about a little bit on the call, but that's
the, I think the fastest growth you've had in, I don't know, a year and a half or something like that. So maybe just talk about the growth going
forwards, like how much higher you think the attach rate could be or how many more markets is do you still have the airline offering to roll out in?
Like just give us a sense of what inning we are in terms of the growth of airline as a product in the booking portfolio. And then could you talk a
little bit about the operator experience you have, anything you disclose on the economics? How did that partnership come together and what do
you expect to get out of that going forwards? Thank you very much.
Question: Mark Mahaney - Evercore ISI - Analyst
: All right, thanks, Glenn.
Question: Brian Nowak - Morgan Stanley - Analyst
: Great, thanks for taking my questions. I have one for on agentic for you. Just want to ask you a question. So when you think about partnering with
some of these other players like operator or maybe Gemini or any of the emerging potential next generation travel players, you give them access
to your differentiated supply.
How do you sort of think about managing the long-term risk that a larger percentage of people and travelers could start using those products the
next 3, 5, 10 years as opposed to going direct to you and it potentially has a negative impact on your overall mix between paid and direct traffic?
Question: Kevin Kopelman - TD Cowen - Analyst
: Great. Thanks a lot. Could you give us your updated thoughts on your interest or lack of interest in larger M&A deals given recent activity in the
space? Thanks.
Question: Kevin Kopelman - TD Cowen - Analyst
: Okay, fair enough. Can I ask about, ad cost? You mentioned that you're expecting leverage this year. Could you give us more color there on the
trends you're seeing? Is it safe to assume that direct traffic you expect to continue to go up, and if you could touch on what you're doing with your
brand spend, you mentioned it was down and also merchandizing. Thanks.
Question: Kevin Kopelman - TD Cowen - Analyst
: Great, thank you so much.
Question: Stephen Ju - UBS - Analyst
: Hey, great. Thank you. So, Glenn, I wanted to dig in a little bit more on your thoughts on AI. I think I heard in your prepared remarks about products
that can help drive more revenue, and on the other side, other products that can help in cost avoidance. So as we talked to other companies, it
seems like the cost avoidance part seems easier to deliver and things that might help revenue may take some more effort. So where do you see
yourself position in terms of, when we can start seeing, I guess, noticeable impact to either the top or bottom line. Thanks.
Question: Justin Post - BofA Securities - Analyst
: Great, thanks for taking my question. Glenn, I'd like to comment a little bit more on the merchant mix shift. Obviously, way faster growth for
merchant bookings. Can you talk a little bit about how that might translate to higher margins or better loyalty, or better repeat rates, and just how
that's kind of transforming your business over time? And then I'd love to ask about room nights, obviously some desal in Q1, but you seem very
confident on the year. So what were some of those nights borrowed in Q4, and then maybe talk about summer booking pacings if you can. Thank
you.
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