It’s earnings season and this week’s Update for the week ending August 5, 2022 focuses on the latest quarterly releases from Booking Holdings and Expedia Group. I’ve also attached the transcripts of the 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 begins in the UK
(“Uber Travel Launches UK First on Trains and Buses from Omio”, Aug 3, 2022 via Skift) (subscription may be required)
Over the past few months, we’ve covered several stories about Uber’s interest in growing beyond a ride-hailing app. Next Wednesday, select Uber users in the UK will be the first to experience Uber’s new “ride” offers – specifically rail and bus fares. Omio will provide rail and bus ticket fares, routes and other product information. The app will automatically update users’ rail or bus itineraries whenever it learns of delays or other issues through the user’s flight information pulled from users’ Gmail accounts. Uber expects a wider rollout of the new offerings by the end of the month.
Expedia reports second quarter revenue and earnings
(“Expedia’s increased focus on its partner business is starting to pay off,” Aug. 4, 2022 via Skift) (subscription may be required)
Some highlights from the latest quarterly earnings release:
- Second quarter revenue ($3.2 billion, up 1 percent over 2019) and EBITDA ($648 million, up 8 percent over 2019) were the highest in company history.
- Gross bookings for the quarter were $26.1 billion (up 26 percent year-over-year).
- Housing accounted for over 75 percent of total revenue (air represented only 3 percent).
- Overall sales and marketing expenses increased 43 percent year-over-year.
- VRBO continues to show strength, although supply constraints – particularly in some Southeast Beach locations – continue to be an issue.
- Expedia’s partner business (B2B) revenue rose 113 percent year over year to $650 million ($156 million EBITDA vs. $4 million loss last year).
- Expedia continues to focus on developing loyal direct customers, not the one-off transactional relationships that have been the hallmark of most OTAs to date.
- Loyalty membership grew by 33 percent during 2019.
Post booking Strong numbers
(“Booking Holdings Nearly Doubles Revenue in Q2 2022”, Aug 3, 2022 via Phocus Wire)
(“Booking Holds Increases Discount to Capture Larger Share of Travel Budgets,” Aug. 3, 2022 via Skift) (subscription may be required)
Key takeaways from Booking Holdings’ 2Q earnings release include:
- The company’s revenue ($4.3 billion, up 99 percent year over year, but still below 2019) and EBITDA ($1.1 billion, vs. $48 million last year, but still below 2019).
- Room nights booked exceeded 2019 levels (38 percent increase driven primarily by growth in ADR).
- While sales and marketing expenses are expected to remain unchanged in 2022, Booking expects increased merchandising through discounts and new payment alternatives (currency exchange, buy now, pay later).
- 38 percent of gross quarterly bookings processed on Booking’s payment platform (a 4 percent increase compared to the first quarter, but still not “all” as sometimes communicated).