It’s earnings season, and this week’s update for the week ending August 5, 2022 focuses on recent quarterly releases from Booking Holdings and Expedia Group. I have also attached transcripts of second quarter earnings calls for Airbnb, Expedia Group and Booking Holdings. I haven’t had a chance to dive into the transcripts yet, but I’ll share anything I find interesting in next week’s update. Enjoy.

Uber Travel launches in the UK
(“Uber Travel launches UK’s first with trains and buses from Omio”, Aug 3, 2022 via Skift) (subscription may be required)
Over the past few months, we’ve included a few stories about Uber’s interest in growing beyond a ride-sharing app. Next Wednesday, some Uber users in the UK will be the first to learn about new Uber “travel” offers, particularly train and bus tickets. Omio will provide train and bus ticket prices, routes and other product information. The app will automatically update users’ train or bus routes whenever it learns of delays or other issues through the user of flight information pulled from users’ Gmail accounts. Uber expects a wider rollout of the new offerings by the end of the month.

Expedia Reports Record Second Quarter Revenue and Profit
(“Expedia’s increased focus on partner business is starting to pay off”, August 4, 2022 via Skift) (subscription may be required)
A few key takeaways from the latest quarterly earnings release:

  • Second quarter revenue ($3.2 billion, 1% higher than 2019) and EBITDA ($648 million, 8% higher than 2019) were the highest in the company history.
  • Gross bookings for the quarter were $26.1 billion (26% year-over-year increase).
  • Accommodation accounted for over 75% of total revenue (air travel only accounted for 3%).
  • Overall sales and marketing spend increased 43% year-on-year.
  • VRBO continues to show strength, although supply constraints – particularly in some southeastern beaches – continue to be an issue.
  • Revenue from Expedia’s Partner Business (B2B) grew 113% year-over-year to $650 million (EBITDA of $156 million vs. a loss of $4 million in the prior year).
  • Expedia continues to focus on building loyal, direct customers, not the one-time transactional relationships that have been a hallmark of most OTAs to date.
  • The number of loyalty members increased by 33% compared to 2019.

The reservation publishes strong figures
(“Booking Holdings Nearly Doubles Revenue in Q2 2022”, August 3, 2022 via Phocus Wire)
(“Booking Holdings Boosts Discounting to Capture Bigger Share of Travel Budgets”, August 3, 2022 via Skift) (subscription may be required)
Key takeaways from the Booking Holdings 2Q earnings release include:

  • Company revenue ($4.3 billion, 99% year-on-year increase, but still lower than 2019) and EBITDA ($1.1 billion, up from $48 million the previous year, but still lower than 2019).
  • Booked room nights exceeded 2019 levels (38% increase mainly due to ADR growth).
  • While sales and marketing spending is expected to remain stable in 2022, Booking expects an increase in merchandising via discounts and new payment alternatives (currency exchange, buy now, pay later).
  • 38% of quarterly gross bookings processed on the Booking payment platform (a 4% increase compared to the first quarter, but still not “everyone” as sometimes communicated).
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