Expedia Group, Inc. (NASDAQ:EXPE) Q1 2023 Earnings Call Transcript

Jed Kelly: Just two questions. Just on the Vrbo migration you called out, are you seeing any pressures from sort of the vacation rental markets having, call it, three record years and now people being able to travel to other destinations? And then just my second question relates to supply. Can you just give us a sense how your Vrbo supply is trending and then you’re supplying some of the international market, like where we are in supply.

Peter Kern: If you missed it, I mentioned it. But, yes, we have seen a little bit of flattening in demand in VR. And that is largely because the length of stays are shortening, people are going to cities more than they’re going to going to long, extended beach – COVID era beach vacations or mountain vacations where they took a month and went wherever. So that’s definitely changed. Hybrid work has changed. So all of those things are impacting macro demand slightly. Now, much of it’s going back to cities. In our VR business, we don’t participate as much in the urban market, but we do have good product there. I mentioned it before, but we actually have good urban market product in our OTA brands, but it’s not in our Vrbo brand.

So one of the things that the Vrbo migration brings us is the ability to get all that content together. And that actually will help a lot. And as you think about supply, because we’ve had it kind of in pockets as opposed to all available everywhere, and that makes a big difference in supply. Having said that, we’ve grown supply well in our Vrbo, again, in our core product, which is home or apartment. And it’s focused not on shared spaces or any of that. But we’ve had good solid growth throughout the period. And we continue to add product there, principally focused on places where we’ve seen the most compression overall in the world. We’re not going to try to break brand new ground where we don’t have demand. But we have seen solid growth in supply.

We’ll continue to push into that. But I think the biggest unlock for us will actually come when we get the Vrbo migration done. And all of our supply can move really to any point of sale and any endpoint in our brand system. It’ll take us a little while to optimize. So don’t think that’s like a moment in time inflection point, but that’s the biggest opportunity for us to amp up our supply and reveal it better to the demand in the market.

Peter Kern: And with that, thank you, everybody. I think that was our last question. Thanks for joining us. We’ll see you next quarter. Take care.

Operator: This concludes today’s call. You may now disconnect your lines. Have a nice day.