Kevin Kopelman • TD Cowen

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CEO Ariane Gorin identified strong growth in Asia (up 30%), geographic diversity, and winning share with existing partners as key B2B drivers. While acknowledging new entrants could pressure revenue share rates, she emphasized that product innovation and adding value helps create partner stickiness. CFO Scott Schenkel clarified that the FX impact on Q2 GBV was approximately one percentage point.

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CFO Scott Schenkel outlined the capital allocation strategy, confirming a commitment to a 2x target leverage ratio and opportunistic share buybacks, with $3.2 billion remaining on the authorization. He positioned the new $0.40 quarterly dividend as a way to attract income investors. While keeping flexibility for M&A, CEO Ariane Gorin added that the primary focus remains on executing and growing the existing portfolio of brands.

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CEO Brian Chesky confirmed AI will be integrated more into the app next year but did not preview specific 2026 launches. CFO Ellie Mertz declined to guide 2026 margins but affirmed the strategy of investing in new businesses while driving core efficiencies. She also noted the new tech stack is improving development velocity, which should accelerate the product roadmap.

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CFO Ellie Mertz outlined three factors affecting Q2 ADRs: a tailwind from real price appreciation, a dissipating FX headwind compared to Q1, and a negative mix shift as the business moves away from higher-priced North America. She also noted that Airbnb does not get the same FX benefit as some peers due to more limited exposure to currencies like the euro.

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CEO Brian Chesky confirmed that advertising services are viewed as a significant opportunity, potentially worth over a billion dollars. However, he clarified that it is not a top priority for the current year, stating it's a matter of 'when, not if' and is something on the horizon but not for 2025.

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CEO Brian Chesky described it as 'a little bit of both.' He stated the launch will be aggressive, targeting over 100 cities at once, which should generate some incremental revenue in 2025. However, he set expectations for a multi-year journey to reach significant scale. CFO Ellie Mertz added that investments will front-run revenue, with expenses appearing early in the year before the new offerings are launched and begin to scale.

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CFO Leeny Oberg described leisure transient as a 'surprise outperformer,' particularly in the luxury and resort segments. She attributed the strength to demographic trends and a continued consumer preference for experiences over goods. While booking windows remain short, she characterized the underlying trends as 'excellent' and 'solid,' though not accelerating.

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CFO Ewout Steenbergen detailed a split in U.S. consumer behavior: the high end remains strong, while the lower end shows more caution. In contrast, he noted that European consumers are holding up well, booking earlier at higher prices and prioritizing travel. In Asia, demand is strong with sequential growth from Q1 to Q2, reflecting the region's robust travel market.

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CFO Ewout Steenbergen detailed a split in U.S. consumer behavior: the high end remains strong, while the lower end shows more caution. In contrast, he noted that European consumers are holding up well, booking earlier at higher prices and prioritizing travel. For Asia, he observed strong demand and sequential growth from Q1 to Q2, highlighting Booking's strong regional position.

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CEO Glenn Fogel described the Genius program as a 'win-win-win' for consumers, suppliers, and Booking. He confirmed that suppliers look to programs like Genius to drive incremental demand during softer periods without engaging in public price cuts. He emphasized that Genius is one of many targeted tools, including mobile and geographic rates, that Booking uses to scientifically help partners capture demand.

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CEO Glenn Fogel declined to comment on M&A. CFO Ewout Steenbergen detailed the drivers for marketing leverage, citing continued growth in direct traffic, higher performance marketing ROIs, and particularly the success of a 'bespoke' partnership with social media channels like Meta that is delivering attractive, incremental returns.

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CFO Ewout Steenbergen attributed the higher ROIs to the company's specialized expertise and algorithms that continuously optimize incremental spend across all channels. For the full year, he expects merchandising as a percentage of gross bookings to be flat, with marketing leverage continuing in Q4 due to the growing direct channel mix.

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CEO Matt Goldberg explained that the flat marketing spend was primarily due to lapping a larger brand campaign from Q1 of the prior year, combined with ongoing efficiencies in paid channels. He then clarified that for most third-party relationships, the associated costs are not in the marketing line but are typically netted out of revenue, and this was not a driver of the marketing efficiency.

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CFO Mike Noonan stated that for 2025, Brand Tripadvisor will continue to face structural headwinds in its legacy meta business while scaling strategic investments like in-app booking. The ambition is to return to growth, but the pace will depend on the level of investment. Regarding Google, Noonan said there was nothing new or incremental to report, as the company's teams are experienced in managing Google's ongoing algorithm updates and the persistent headwind from paid ads in search results.

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CFO Joan Bottarini confirmed the 0% to 2% RevPAR growth range is a good guide for Q2, with April tracking toward the higher end. She explained that the high single-digit pacing for all-inclusive should translate to a mid-single-digit net package RevPAR result in Q2, similar to Q1. CEO Mark Hoplamazian added that they feel confident in this, as 88% of Q2 all-inclusive business is already booked.

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