Ryanair Holdings plc (NASDAQ:RYAAY) Q3 2024 Earnings Call Transcript

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Michael O’Leary: Okay. I’m not sure. I mean, look – if you take – there’s about 7 or 8 OTAs account for, we think, more than 50% of OTA pirate bookings. We’re never quite sure what the number is. So I give you 10% to 15% because the only we can track these is where we think there’s a fake credit card or there’s a fake e-mail address that’s how we chase them down. So we’re not entirely sure ourselves. A number of them have come to us since December. In fact, with Love Holidays were the first ones to come to us. And we were – I mean, we have offered them in essence. And are the same offers on the table. We’ve given them the same terms that were on offer through the GDSs. Where we signed up deals with the GDS last year, so of the travel agents had visibility on our pairs.

And the great thing again was that we would have the booking made directly in ryanair.com and no overcharging, no scamming of consumer for fair ancillary. I think that gives the business more OTA business model a lot of flexibility. But what we’re not willing to count is that people taking our digital – or sorry, they also agreed not to screen scrape our website because we give them a direct feed. There’s no need to screen scrape our website. Do I think all of them will come on board? Frankly, I don’t know and I don’t particularly care. I do think the majority will. We have a number of others who are – we’re in active discussions with almost all I would say of the top eight, top 10 booking are not in our top eight or top 10, they’re reasonably small.

But I do expect – I don’t know that Julius going ask if you want. We do expect the case of Booking.com to roll on. We’re not particularly minded to settle with them. And I think – but we have so many examples of egregious overcharges by booking on airfares and on ancillaries. We are – believe it will be very difficult for Booking.com to go into core in the state eventually. We’re going to drive it that way. We thought it was remarkable that they wanted all of the Ryanair management deposed and we’ve all been deposed and yet none of the booking management want to be deposed, they’re kind of contorting in regaling every which way they can to avoid being deposed because the first question you want to ask them, of course, is why you overcharge you, why are you illegally screen scraping and overcharging customers, but they are reasonably small in terms of volumes, but we’re not about to allow any of these people to try and engage in digital piracy or to overcharge consumers.

They all want to have approved partnership deals where we give them direct access to our inventory and they agree not to screen scrape, not to overcharge. Then we’d be very happy to work with. Why do we think it’s a December, January issue? Well, one, because once they come off sale, there is an immediate drop off in our bookings and it took us a number of a week or two in December to spot this, but passenger certainly find a way they find other ways on the Internet back to the Ryanair low fares and also the passenger still mistakenly believe that they’re booking in Ryanair, when they’re actually booking the eDreams or Sky, or eDreams or booking or Opodo are key real-people – they don’t really realize that they’re not making the booking in the Ryanair website.

They don’t be realized they’re getting scammed and overcharged. And if Ryanair comes offset on some of these OTA pirate websites, people simply find a way Around. I’ll go back to Google Flight or somebody else or some of the other price comparison websites to find the Ryanair price. It does look – and then of course, we always have the ability to open up a bit more cheap seats or a bit more price stimulus, which we’re happy to do during January and February. We weren’t happy to do it in December because we thought we would trash the close-in bookings over the Christmas, New Year period. And I have always been of the view that if we can eliminate these sizes or at least remove the overcharging and the scamming and at least protect ourselves for the long-term risk that these guys would try to become or would have so much of our volume that they try to become a new GDS or a new intermediary charging either us or customers a percentage of revenues, then that’s a fact that’s well worth taking on.

We’re much more vocal about this because we have the cheapest airfares in every market. Therefore, we’re much more of a target for these guys than the other higher fare airline. I think the other higher fare airlines are grateful for whatever bookings they get from these OTAs, whereas in our case, because we have such a price advantage, it gives them more latitude for scamming or overcharging passengers. Julie, anything you want to add on the Booking.com center on the OTA side?

Juliusz Komorek: On Booking.com, maybe bookings themselves are in trouble with competition authorities throughout the world and likely to be harder as a gatekeeper under the EU, the supermarket as this year and I think they should consider seriously where they stand in respect to consumers on transparency and the extent of charges that they impose. I think ultimately, they will – how to come to terms with the fact that the age of overcharging consumers with in this is over and they have to work with us.

Michael O’Leary: Okay, thanks. Next question. Thanks, James. Next question please.

Operator: The next question comes from Savanthi Syth from Raymond James. Please go ahead, your line is open.

Michael O’Leary: Savi, hi.

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