2024 Guidance Amid Middle East Impact
Q: How does the Middle East situation affect your 2024 outlook?
A: David Goulden stated that despite roughly a one-point negative impact from events in the Middle East, Booking Holdings expects to grow faster than 8–15% on a constant currency basis for 2024. This reflects confidence in their position in the travel market and their continued ability to gain share.

AI Transition and Competitive Advantages
Q: How will AI advancements affect Booking Holdings?
A: Glenn Fogel emphasized that AI is incredibly important for the future. Booking Holdings believes they have an advantage due to their significant data scale and capabilities. Early signs suggest AI will be transformational, potentially leading to improved margins, increased loyalty, and a stronger position in the travel industry.

Marketing and Merchandise Spend
Q: Have marketing and merchandising reached a steady state in the mix?
A: David Goulden indicated that merchandising activities have reached more of a steady state, with only slight increases expected. They anticipate that increased direct mix will be a source of leverage, contributing to EBITDA margin expansion this year. The competitive environment remains intense, but they are pleased with their performance.

U.S. Performance and Growth Investments
Q: Is hotel business in the U.S. declining, and what investments are needed?
A: David Goulden noted that U.S. room nights were flat for the quarter, impacted by events in the Middle East in October, but returned to growth in November and December. Glenn Fogel emphasized opportunities in the U.S., highlighting growth in alternative accommodations and the importance of improving their product, particularly in this segment. They aim to provide incremental demand to hotel partners and continue building strong relationships.

Increasing Alternative Accommodation Supply in U.S.
Q: What's your plan to increase alternative accommodation supply in the U.S.?
A: Glenn Fogel explained they are focusing on adding more listings, especially single properties, by working with large property managers and individual homeowners. Despite currently underindexed in single homes, they see this as an opportunity and are pleased with a 12% increase in listings to 7.4 million.

Expansion of Genius Loyalty Program
Q: Will you include all travel verticals in the Genius loyalty program?
A: Glenn Fogel stated they plan to experiment with expanding the Genius program to all travel verticals, including flights, taxis, and other services. The goal is to offer benefits intelligently, providing value to travelers and suppliers, and encouraging direct and repeat bookings.

Progress on Connected Trip
Q: How will you achieve your connected trip goals?
A: Glenn Fogel acknowledged that while it's early days, they are building verticals like flights and attractions and developing ways to offer bundled services intelligently. They are seeing positive signals but recognize it will take time to scale and significantly impact top and bottom lines.

Stock Buyback Activity
Q: Why were Q4 share repurchases lower than Q3?
A: David Goulden explained that share repurchases are influenced by share price levels. The share price increased during Q4, leading to slightly lower buyback activity than anticipated. They consider share price movements in their buyback decisions while maintaining a long-term view.