Booking Holdings Inc. (NASDAQ:BKNG) Q2 2023 Earnings Call Transcript

So they will always come back to us for all this. What do I believe in the end it could be to I believe that in the end we could have all customers all the time of course not. But I hope that we can continue to improve this substantially in the long run. And we’ll see that as we get to finish off some of these areas though that we’re still building out. Things like making sure we have enough of those alternative accommodations from people so he wants it we actually have one. It’s like making sure that we have the payment product that they want to use a payment system that. Many things around the world we’ve talked about they don’t use Visa card. They don’t use Mastercard. They don’t use [indiscernible] space. They got other ways they want to pay.

Make sure we have that payment for them so that traveler customer to comfortable using us. And I can go on and on and on with many other things. That’s what we need to do. And how high do I think can be? I’m not going to guess at it. I just know it could be substantially better than we are right now.

Ron Josey: Thank you, Glenn.

Operator: Your next question comes from the line of Scott Devitt with Wedbush. Your line is open.

Scott Devitt: Thanks for taking my questions. I had two please. The first one, I’m just wondering Glenn in terms of anything you can speak to in terms of shift in travel trends. There’s been a lot of discussion around shoulder month travel April, May, August, September because of remote work and elevated prices. When I hear you guys talk about the months I don’t necessarily see that in what you’re saying but it may be related to comps. I’d just love to hear your perspective on shoulder month travel first? And then secondly now that there’s a new loyalty program in the market I was just wondering your thoughts on Genius? And how you’re thinking of the current offering relative to competing programs now in the market? Thank you.

Glenn Fogel: Sure. So, yes, it used to be easy. There’s a shoulder and there was a peak and life was easy to understand and that’s how it used to be and it’s not like that at all. And boy — are things confusing right now when you have Omicron circling the world and some areas is hitting. And then a year later that’s the area to comp against. So it gets very, very confusing. As David was pointing out in the numbers how something could look something, but actually it’s much more understandable they had COVID in that area last year or they just opened up last year. Here’s the thing. I hope that next year things have turned back to a more normalized ease understanding what the seasonality of travel is. However, there’s a new thing this come in and that is the idea of people not going to offices as much and then, they’re also traveling more.

So they’re using this Monday and Friday where they’re traveling more for these longer weekends et cetera or perhaps a whole week et cetera. And I think that’s going to make a more uncertainty to see what that is. What that may end up doing is, evening out travel throughout the year more where people are able to use time in areas that used to be shoulder season, but now people are using more which help spread out the travel more. I don’t know. But we’ll find out. That’s why the — I can’t change any of that. So I’m not going to worry about it too much. What we use is in the near-term is, what signals we see in terms of how much we should spend on marketing or not. And in the long run what we hope is to continue to improve the products, because that’s the way in the long run to win.

That’s how we do it. I’m sure lots of you are going to have lots of guesses about what the seasonality trends are going to be for the next couple of years globally. I’m not going to try and do that. You had another question I believe I forgot it though.

Scott Devitt: Yeah. Just Genius and your thoughts on Genius for the computing product now in the market?

Glenn Fogel: So there…

Scott Devitt: There is …

Glenn Fogel: Yeah. So if we look to way back to when American Airlines came out with our first loyalty plan. I’m actually old enough to me, I actually joined it. All the way to now there are lots of different loyalty plans for all different things and beyond travel for sure. And that another company comes out with a new one whatever that’s nice interesting but the truth is I love what we’re doing on Genius. I think it’s a great pod and we’re going to do even more with it. One of the things that’s really wonderful about is that we use it with our partners together in a way to give benefit to both of us making sure that it is actually incrementally improving what’s good for that partner along with of course being so good for our customer traveler, doing that is the way of any type of loyalty program should really work.

And that’s something that I think we’ve done a good job within [indiscernible]. Now we need to gain on more benefits and any more benefit that enable the supplier to give more opportunity to merchandise and give things that will be good for the traveler so they can win that actual transaction. And that’s something we’re going to continue to do. We’ve talked about how we’ve improved it from where it just started out and now we’re up to three tiers. And there are lots of things down the road that will add on as we continue to develop the connected trip that will give us opportunity to give more benefit — incremental benefits to both sides. I really don’t worry too much about what somebody else is doing a more concern making sure we’re executing right on the things that’s important for our customers, or both the travelers and the suppliers.