Anthony Post

Anthony Post asked how Expedia Group's replatforming efforts are enhancing its competitive position and for an update on the performance of Vrbo and Hotels.com brands, including their potential for further recovery next year.

Answer

CEO Ariane Gorin explained that the replatforming, completed by early 2024, enables greater scale through a common data platform and lodging path across brands, facilitating features like the OneKey loyalty program. She noted that recent strong performance from Hotels.com and Vrbo stems from repositioning these brands and executing against their unique value propositions, leveraging the platform work. CFO Scott Schenkel added that the strong performance across all three B2C brands, not just one, validates the platforming initiatives.

Anthony Post of Bank of America asked about the competitive advantages gained from Expedia Group's replatforming efforts and the recent performance of the Vrbo and Hotels.com brands, inquiring about their potential for further recovery and growth next year.

Answer

CEO Ariane Gorin explained that replatforming provides scale through a common data platform, shared lodging paths, and a unified loyalty program across brands, enabling faster learning and cross-brand redemption. She attributed the strong performance of Hotels.com and Vrbo in the last quarter to both platform work and strategic brand repositioning. CFO Scott Schenkel affirmed the strong performance across all B2C brands.

An analyst for Anthony Post asked about selling and marketing efficiency, specifically how Expedia's efficiency compares to competitors after excluding the B2B business, and whether there are long-term cost-saving opportunities in this area.

Answer

CFO Julie Whalen identified marketing as a significant opportunity for efficiency gains. She explained that while current investments in Vrbo and international markets mask underlying progress, the core Brand Expedia business is already demonstrating efficiencies. She stated the company is 'laser focused' on optimizing product and supply to drive more direct and repeat traffic, which will ultimately lead to greater marketing leverage across the portfolio.