TripAdvisor, Inc. Q1 FY2021 Earnings Call

Good morning, and welcome to TripAdvisor’s First Quarter 2021 Earnings Conference Call. As a reminder, today’s conference call is being recorded. At this time, I would like to turn the conference over to TripAdvisor’s Vice President of Investor Relations, Mr. Will Lyons. Please go ahead.

Thanks, Liddy. Good morning, everyone, and welcome to our call. Joining me today are TripAdvisor’s CEO, Steve Kaufer; and our CFO, Ernst Teunissen. Last night, after market close, we distributed and filed our first quarter 2021 earnings release and made available our shareholder letter on our Investor Relations website. In the release, you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed on this call. On our IR site, you will find supplemental financial information, which includes reconciliations of certain non-GAAP financial measures discussed on this call, as well as other metrics. I also note that the comments we are going to make regarding cost savings levels referenced on this call do not consider depreciation, amortization, restructuring and other related reorganization costs or stock-based compensation. Before we begin, I would like to remind you that this call may contain estimates and other forward-looking statements that represent management’s views as of today, May 7, 2021. TripAdvisor disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to our earnings release, as well as our filings with the SEC for information concerning factors that could cause actual results to differ materially from these forward-looking statements. And with that, I’ll turn the call over to Steve.

Thank you, Will, and good morning, everyone. Thanks for joining us today. As covered in our shareholder letter last night, I’m pleased to say that consumer demand and revenue performance as a percentage of 2019 levels improved sequentially on our platform in both February and March. This was led by the U.S. market where vaccination trends accelerated during the period. Traffic to our U.S. hotel pages approached 80% of our 2019 levels in March. Two of our key offerings that lagged last year—hotel metasearch and experiences—are showing nice improvement so far this year, again due to increased U.S. activity. Europe lagged due to lockdowns, but demand picked up in April and we are optimistic for broadened international recovery as vaccination rates improve. Other Q1 trends in the U.S. and some other countries contrast greatly with challenges in many other parts of the world like in India. And I just want to say that our thoughts are with all of our colleagues in India, as well as the families and, of course, everyone who is struggling so hard in this terrible situation. These contrasting trends that we are seeing support our overall view that the road to recovery is in fact uneven. So travel is certainly not out of the woods, but we have a positive start to the year. We remain quite optimistic about the second half of 2021 as the number of people vaccinated increases, countries reopen and the leisure travel recovery broadens. People want to travel and we are certain that when they feel safe to do so, they will travel. But the TripAdvisor story is more than just the recovery. We have and will continue to position the business for future growth by leveraging our platform’s breadth and our competitive strengths and executing on our strategic initiatives. Pre-pandemic, we grew many offerings by double-digits, including our B2B business, display advertising, experiences and dining. We have been actively improving these products, as well as our technology and our go-to-market strategies in order to deliver customers the best experience possible and drive diverse growth. To add to that, the innovation that we are bringing into travel in terms of our new subscription product, TripAdvisor Plus. As many of you know from our last quarterly remarks, we see a huge opportunity ahead and fully expect that Plus is going to be a very exciting part of our future. We remain in beta in the U.S. today, but are pleased with our progress as we work to improve the product for consumers and work closely with partners to build out the offering. Converting even a small percentage of engaged TripAdvisor traffic—not to mention the hundreds of millions of visitors per month that are searching on TripAdvisor for hotels and experiences—implies a potential long-term growth opportunity of tens of millions of subscribers and a multibillion dollar recurring revenue stream. I’ll note that absolutely none of this is possible without the team and I want to thank everyone at TripAdvisor for their ongoing commitment to helping millions of consumers and partners get back to travel. We’ve grown accustomed to executing through tremendous unpredictability and I have been very proud of their continued resilience. I remain very optimistic about what’s ahead. And with that, Ernst, let me turn it over to you for some additional thoughts.

Thank you, Steve. Good morning, everyone. I first just want to echo some of Steve’s comments—uneven trends and uncertainty persist, but improvements have been encouraging. I remain pleased and impressed with our team’s continued operational focus and how they rallied together to strengthen TripAdvisor, not only for a strong recovery, but for the long run. Q1 demand and revenue trends indeed reflected our commentary back in February with varied stories by geography and by offering. Progress in the U.S. almost single-handedly drove sequential revenue improvements in our business in February, March and in April. On the other hand, persistent lockdowns across Europe and challenges throughout international markets, as well as the absence of international travel remain significant drags on our results. The good news is that there is a lot of room for continued improvements in the periods to come in the U.S., but especially in Europe and beyond as the number of people vaccinated increases, countries reopen, and the leisure travel recovery broadens. I want to quickly highlight three financial themes that remain within our control: driving significant cost savings, ensuring a solid liquidity position and laying the groundwork for compelling and profitable growth when the pandemic subsides. Firstly, regarding cost, we continue operating effectively and efficiently as a leaner company. Operating expenses in Q1 were 32% lower year-on-year. We expect the majority of the fixed cost savings that we generated in 2020 to persist, positioning us for operating leverage as the travel environment normalizes. On the liquidity front, in Q1, we completed an opportunistic convertible debt capital raise, which further fortifies our balance sheet, with $674 million of cash on our balance sheet at the end of the last quarter, plus an undrawn credit facility, for which covenant flexibility was achieved last year. As revenues come back, and with enhanced operating leverage, we believe we are in a strong liquidity position. And finally, throughout the pandemic, we have been focused on driving improvements across our platform. We expect that these efforts will pay dividends as faster growth and more efficiency across our various revenue lines as the market recovers. So, in summary, much uncertainty remains, but green shoots have definitely started to emerge. We remain optimistic that leisure travel will come roaring back as early as the second half of the year and are pleased with the ongoing work that will enhance our positioning well into the future. With that, we will now open the call for questions.

The operator provided instructions on how to ask a question. And our first question comes from the line of Lloyd Walmsley of Deutsche Bank. Your line is open.

Thanks. Two questions if I can. First, in the shareholder letter you mentioned credit card partnerships with TripAdvisor Plus. Can you just help us understand conceptually how something like that might work? Is the credit card company paying full freight, half freight—how would that work in terms of paying for Plus benefits for their members? Would their cardholders have to activate it or would they automatically get it? How do those deals work and what kind of economics come with those if you can flush that out a little bit? And then the second one just on the U.S. metasearch auction, it seems it’s clearly coming back at 80% of 2019 levels in April, but that’s a little bit behind at least some of the OTA commentary on U.S. booking levels. So wondering if you can help us kind of bridge the timing differences and how you guys think about the category of metasearch catching up relative to OTA bookings and revenue? Thanks.

Sure. Thanks, Lloyd. Maybe I’ll take the first question, Ernst will take the second. There are a couple of different ways that we are looking to work with the credit card companies. The first could be that a higher-end credit card that carries some interesting travel benefits already, or maybe a particular financial institution wants to break into that pretty lucrative category of travel. The travel reward, or one of the travel rewards with the credit card, could be a TripAdvisor Plus subscription. That type of model would generally have the credit card company paying TripAdvisor on behalf of the customer at perhaps a somewhat discounted off-list price rate, and then every credit card customer would automatically become a TripAdvisor Plus subscriber. That’s a great deal for TripAdvisor and a way to enhance a credit card in a very meaningful and differentiated way for a financial institution. But obviously those deals take a little while, and Plus is still in beta as a product. Another option we are certainly exploring with other financial institutions is to include a discount perhaps or a free trial—so a way to get started with TripAdvisor Plus and reach an interested audience. Again, it’s something the consumer would likely activate themselves and auto-renew, and we think that once someone sees what TripAdvisor Plus offers by way of discounts on hotels and experiences and the additional value propositions that we are bundling with the product, we think renewal will come rather simply. Ernst?

Yes. Hello, Lloyd. With regards to the metasearch auction, particularly the U.S. metasearch auction is seeing significant improvement throughout the start of the year. We said in our shareholder letter that in March in the U.S. we reached about 67% of 2019; in April that was nearly 80%; and right now, we are above 90% in the U.S. compared to 2019. So performance is rapidly increasing. A lot of domestic U.S. travel is helping us here and we are pretty excited about that—the auction seems to be performing very nicely, CPCs are roughly at 2019 levels. So the metasearch auction is very healthy indeed and the OTAs obviously are actively participating in that. So, very pleased with how that’s going and it’s a good sign for what may happen with our European business which is now very suppressed in the near term.

Alright guys. Thank you.

And our next question comes from the line of Jason Bazinet of Citi. Your line is open.

I just had a quick question on Plus. As you had discussions with your hotel partners, are there any broad parameters of things they like or are concerned about when they contemplate putting some of their inventory into the program? Thanks.

Sure, Jason. Thanks much. We’ve certainly had quite a few discussions with the hotel chains and independent hotels and we feel we are making good progress. Let me back up and remind everyone that we are at super early days in bringing this whole new subscription model to travel and hotel discounts are obviously a core part of that consumer value proposition. In doing so, we are actively engaging with chains and independent hoteliers and listening closely for what they like and where we can improve, and ultimately how we get everyone to join the program. We are absolutely dedicated to making it a win for hoteliers just as much as it’s a win for travelers. What we’ve learned over the past couple of months is that a number of chains and independent hoteliers really like what we are doing and are perfectly comfortable with how we are displaying Plus, how we are merchandising it, and how we require a traveler to buy a Plus subscription in order to book at a discounted rate. That’s what we call a hard gate and frankly that’s what makes Plus so different from the legacy hotel discount sites.

If you—go ahead, sorry.

Go ahead.

I was just going to ask, if you had to rank-order the risks of this not achieving your expectations, what would be at the top of the list and what would be at the bottom? It sounds like the value proposition to the consumer is clear, so what would be the things you’re more nervous about?

Yes, it’s a great question. I do think a lot about it because I love trying to punch holes in our thesis going forward. We have the traffic on the site—we shouted about the 160 million 'shots on goal' of people clicking on our meta links in 2019—so it’s a great opportunity. We are signing up independents and they are comfortable with the product. We’ve had some pushback from some chains, but they really don’t speak with one voice. So a number are coming forward saying, 'Hey, it’s exciting, let’s enter negotiations.' We see this as a great channel for them and they want to make sure their properties get their fair share of bookings from this product. Other chains are a little more nervous about how we are showing the rate, and we’ve taken that as constructive feedback and are addressing it. We are in conversations with every chain about what it will take to make them feel very comfortable joining the program. You asked about concerns and I want to make the point that we don’t need universal coverage for this product because travelers going to, say, Cancun want to see some amazing deals. We want to present dozens of deals, but we don’t need to display hundreds of deals. We are able to promote the deals that we are getting from chains or independents wherever we get them, and the better the deals, the more we are interested in promoting them to the traveler. Over the past several months travelers’ savings have been meaningful—more than $1000 in some single-day instances since we launched the product—and those are very compelling numbers. When we talk about the demand we already have on the site and partnerships, on the supply side we have independents joining and good progress negotiating with chains. We want participation from as many chains as we can, because some of those chains have the best properties, and we want every property to be able to join the program. But the point is, we don’t need every property. We just need a good set in all the geographies where travelers want to go. So it may take a little longer for some chains to hop on board, but we want to make sure their properties get the share of bookings that Plus will be driving.

Great color. Thank you.

And our next question comes from the line of Richard Clarke of Bernstein. Your line is open.

Hi there. Thanks for taking my questions. A couple if I may. You provided helpful color on where we are in terms of the U.S. booking rates for the metasearch auction product and experiences. Would it be possible to get similar commentary for the rest of the world in aggregate or broken down—are we seeing any progress as we exited the quarter outside the U.S.? And then, maybe just a quick follow-up on the Plus product. I think we’ve seen a few comments that supply has come down a little bit over the last month as we moved into Memorial Day relative to a couple of months ago. Is that just a natural result of the shift from wholesale supply to direct partnership supply? And where are you in that process of shifting to direct partnership supply?

Thank you, Richard. I’ll start with commentary about outside the U.S. Much more muted—more like Q4 throughout Q1. More green shoots more recently starting in Q2 in April and May, but more depressed outside the U.S. because of the slower vaccine rollouts in Europe and the lockdowns in many countries. But it is starting to change. We see that the U.K. is ahead with vaccinations and travel intent is increasing there. We see a thawing in our restaurant business—remember last year some restaurants in Europe opened for business and bounced back to 2019 levels very quickly in Q3. We are starting to see restaurants open now. The timetable for restaurant reopenings in Europe is in the next few weeks in most countries—at least partial openings—and in those markets we immediately see revenues jump back. So recent green shoots across Europe and we anticipate that Europe, although behind the U.S., will catch up with the U.S. in the back half of the year.

Thanks, Richard, for the Plus question as well. The short answer is we are in discussions with a number of different aggregators. We originally brought on aggregators that helped us deliver a comprehensive amount of supply right off the gate as well as independents and chains to support our direct supply effort. That has caused some variation on the site as you noted. I’d say it’s less seasonally related and more an aspect of how we are going to market with our direct connectivity, direct supply and how we are working with the different set of aggregators. Expect more change going forward. We are a test-and-learn company. This is a brand new product. We are innovating the best ways to display inventory and great discounts for travelers while at the same time respecting the wishes of hotels who want their inventory and prices displayed in a way they are comfortable with. As you continue to look at the site you’ll see more tests and changes in the next weeks and months, and that’s part of the reason why we are still in beta as we hone the consumer experience and achieve a nice breadth of inventory coverage.

Wonderful. Thanks for the color.

Thanks.

And our next question comes from the line of Naved Khan of Truist Securities. Your line is open.

Yes. Thanks a lot. Maybe first on TripAdvisor Plus: can you give us a sense of the scope of the beta—how much traffic was exposed to it? And how is the beta so far—have you recalibrated your expectations up or down? Any color would be great. And then on the Plus topic still, I think last time you disclosed more than 100,000 properties. Do you have an updated number you can share and how has that number grown since previously disclosed?

Sure. Thanks, Naved. Since we rolled out in beta earlier in the year on a very small percent of our traffic, we rolled it up to north of 75% in the U.S. in terms of chances of seeing TripAdvisor Plus, because we want to get as much experimental data as we can for how consumers are interacting. On any given day you might have four or five different Plus-related tests running as we hone in on merchandizing, checkout flow, sorting different properties, and other elements that are part of the equation. Am I more bullish or bearish? I’m getting more bullish on the opportunity because I see the types of savings consumers are achieving and they are pretty compelling—our average savings north of $300 and several times every day someone is saving more than $1,000, which is a meaningful number for changing the type of trip a traveler can have. As word spreads that this is available with TripAdvisor Plus, looking three to five years out I believe the category can have tens of millions of subscribers because it’s such a logical fit into the ecosystem. Subscription is clearly growing in many categories now and we’ve priced this appropriately so a lot of people can afford to subscribe. Do the math: at $100 a year it’s less than $9 a month—what a great deal to get discounts on hotels and 10% off bookable experiences on TripAdvisor. You’ll soon see other things added into the package. I am more bullish on the category as I’ve seen more customer reaction, but I am tempering enthusiasm about the speed of adoption because this is a new concept and it will take time to educate folks. Success is measured in years, not months, and that’s how we’re approaching it. Regarding property counts, I don’t want to hang too much on specific property counts because it’s really the combination of discount level and the prices we are showing that drives bookings. A large number of properties with small discounts doesn’t move the needle. But when we get 10%, 15%, 30% or 40% discounts those become best sellers quickly and we help hotels fill empty rooms. That dynamic is what makes the model powerful. Thanks.

Great. Thanks for the color. Maybe a quick question on the Viator distribution deal: when can we start to see the P&L impact? Obviously the experiences economy is still reopening, but maybe talk about the timing and how the economics might be structured. Is there potential to do more distribution deals like this?

Sure. I’ll try to answer that and then Ernst can add. Part of Viator’s business model is distributing inventory across many points of sale—whether that’s Booking.com, Expedia, other OTAs and traditional offline travel agencies. They are very good at distributing that type of inventory and we are very good at aggregating supply for experiences. Again it’s early days in the recovery for experiences, but we’re thrilled with the partnership with Booking.com. They are a great company to work with, excited about experiences, and this complements their global reach. From our perspective it’s quite exciting.

Yes, I would add that the ability to do distribution deals like this reflects the power of the supply aggregation that we’ve put in place with Viator, which is second to none across the world. We have very attractive connections with very attractive supply in experiences, and that makes partnerships with players like Booking an attractive proposition for both sides. It will allow them to scale their experiences business faster and will allow us to create even more scale in our supply aggregation.

Great. Thank you.

And our next question comes from the line of Deepak Mathivanan of Wolfe Research. Your line is open.

Hey guys. Thanks for taking the question. A couple of questions. First, can you talk about auction participation at this time? Are you seeing more participants come in either hotels or more OTAs beyond your large partners? Trying to get a sense of how various players are reacting during the rebound and what the marketplace could look like post-recovery. Second, on Plus—given it’s a small data set from beta—how are you thinking about ROI and potential cannibalization of metasearch revenues because of this product? Thanks.

I’ll start with the auction. Yes, we are pleased with increased participation in the auction, especially in the U.S. as it comes back to life. I mentioned CPCs have been close to 2019 levels recently, which indicates improving health. Our revenue very recently has been above 90% in the U.S. versus 2019, so the auction is regaining health sequentially and we are very pleased with that.

I’ll jump in on the Plus question. We keep a very close eye on cannibalization. When we put a Plus offer at the top of the order, one can still click on a meta link for that property and people do, but we are trying and succeeding at driving a bunch of traffic into the Plus flow. It’s too early to say what the complete ROI will be because we don’t yet have long-term data on renewal rates. But if we make reasonable assumptions and we clean up a few of the loose ends on the conversion path to make that more effective, I am quite confident we’ll reach a clearly positive outcome where subscription revenue more than makes up for any dilution in metasearch. Also, Plus subscribers tend to come back more frequently—whether they book Plus hotels or non-Plus hotels—subscribers demonstrate greater loyalty to TripAdvisor, and that repeat behavior boosts our direct traffic and in turn boosts our overall metasearch revenue outside of Plus. Very early days, but what we’re seeing so far looks positive.

Got it. Okay. Thanks guys.

Our next question comes from the line of Shweta Khajuria of Evercore ISI. Your line is open.

Oh, I am sorry. I was muted. Can you hear me?

Yes.

Okay. Sorry about that. So could you please remind us how the pricing will work with TripAdvisor Plus? I know there was a question about wholesale pricing and consumer pricing—if it’s a $100 night, do you just pass the discount through to the subscriber and you get a subscription fee, but does the subscriber see $85 or something like that? Would it be different in terms of pass-through whether it’s a chain or an independent hotelier? Also what are you looking for in terms of supply and engagement that would trigger a full launch out of beta—what metrics will let you launch fully in the U.S. or globally? Thanks.

Great. Thanks, Shweta. Two-part question. The basic model we’re working with—there may be exceptions—is we encourage hotels of all types to identify a discount that we are able to pass along to the traveler and we pass along the entire discount they are able to offer. That maximizes consumer benefit and helps the product catch fire. So if an independent hotel says they will offer a 25% discount, that 25% flows straight through to the consumer. If someone books at a 25% off rate on a multi-night stay that may be a $300 saving and the consumer sees the value, loves the hotel and the location. If we charge $99 for TripAdvisor Plus, that’s net savings of $200 and it’s a win for the consumer, the hotel and TripAdvisor. A different hotel may only offer 10% off, which we will still offer but it’s less compelling for a new subscriber. For a longer stay a 10% discount can add up to meaningful savings. Hotels can toggle discounts up or down depending on demand. There is a minimum discount when we sign hotels but we generally pass through the full discount today because we want rapid consumer adoption and the subscription model drives our revenue. We could change approach in the future but that’s not our plan today. Regarding launch criteria, supply is one aspect, and we are honing the consumer experience and conversion flow to make it straightforward across devices. We do not have a hard-and-fast rule like a required number of properties at a specific discount level. We look across major geographies to ensure we offer compelling hotels and discounts. We won’t wait until every city looks perfect before launching broadly, but we are putting the finishing touches on the product before we fully launch and ramp marketing and PR.

Okay. Very helpful. Thanks, Steve.

Thanks.

And our next question comes from the line of Tom White of D.A. Davidson. Your line is open.

Great. Thanks for taking my questions. First, can you give an update on progress around leveraging the large amount of customer data you have and making it more actionable? Any way to quantify potential benefits—more repeat rates, higher conversion? Also where does this rank on your priorities given the focus on Plus and the recovery? Second, you remarked that no one else has really launched a travel subscription offering—why do you think that is? Is it because OTAs are set up to optimize transactions and not subscriptions, or are there other reasons?

Sure. On data and making it actionable: we’ve been doing this in our display ad business—targeting and segmentation beyond geography—and that enables us to command premium CPMs. For TripAdvisor Plus our go-to-market uses internal historical data to identify travelers who would be good Plus customers and how to approach them differently than mass marketing. So data and analytics support our Plus subscription priority. We are also adding recommendation capabilities, particularly in experiences, but priorities mean we have placed more focus on Plus than on some other data-driven features at the moment. We do have teams working on bringing data to life. On why others haven’t launched travel subscriptions at scale: TripAdvisor expects to be the first mass-market travel subscription product. OTAs like Expedia and Booking built businesses around commission and transaction models, which are great businesses. The subscription model is a different way to think about travel economics. Startups or newcomers might struggle to acquire enough traffic to expose a subscription product to users. TripAdvisor doesn’t have that problem—we already have massive traffic—so we can present a subscription product to a broad audience even for episodic travel where the value per event can be very high.

Great. Thanks for the color.

And our next question comes from the line of James Lee of Mizuho Securities. Your line is open.

Great, thanks for taking my questions. A couple on Plus: can you talk about the checkout process—does the entire sign-up and booking flow happen on your website or do customers get redirected? What is your cancellation policy for membership? Lastly, are the hotel deals you’re showing negotiated and are they exclusive to TripAdvisor?

Great questions. The checkout flow is all on TripAdvisor—we do not send you to other sites. TripAdvisor makes the reservation for you; if you need changes or cancellations you contact us and we help, whether it’s an attraction or a hotel. We share the guest name and reservation information directly with the hotel and encourage the hotel to upsell, offer services or invite the guest into the hotel’s loyalty program. Cancellation policy for TripAdvisor Plus is consumer-friendly: currently we offer a 30-day window (we may extend this). TripAdvisor Plus is an annual subscription. If you haven’t used the product, we will let you cancel; if you have used the product there is no refund for the remainder of the year. If you use it once or twice a year you will typically see clear value. Regarding exclusivity: deals can be exclusive to TripAdvisor if hotels choose, but we do not generally demand exclusivity. If a hotel offers the same discount on another channel and that discount is visible in our metasearch, then that property won’t be merchandised as a Plus deal on TripAdvisor because it wouldn’t present a compelling value proposition. The hard gate is that consumers must subscribe to see the discounted rate; that allows hotels to give us discounts they’re not putting on their own website or other channels, which is what makes the deals special.

Great. And a quick follow-up: you had a social feed product a while back; any update on that feed product and on driving logged-in users?

Yes. A couple of years ago we had a social feed that allowed posting and following; it was helpful for engagement and content generation. That functionality is still live on the site and you can still post and follow. During the pandemic we shifted priorities to TripAdvisor Plus and experiences, which we believe are more sustainable long-term opportunities. We are still growing membership—more than 100,000 new members every day—and those members are an audience for new offerings like TopAdvisor Plus and enhanced experiences. At the end of the day we focus on how to deliver amazing travel experiences to consumers using content, guides, photos, COVID information, and our new subscription and experiences offerings.

Thanks, Steve.

And our final question comes from Vince Ciepiel. Your line is open.

Great, thanks. You mentioned the U.S. metasearch auction coming back to life. Your peers have alluded to much stronger booking trends in the domestic market. Amidst that backdrop, curious how you’ve seen Reco and the insurance product progress, which was a direct-to-consumer offering that you rolled out. And then, a second part on B2B: I think Reputation Pro and Spotlight—how are those progressing as demand improves?

Thanks. Reco is a fun product aimed at larger or usually more international trips connecting travelers with trip designers and experts. We launched it as the pandemic started and chose to iterate and improve even though usage was low. Now as travel comes back, and as Europe reopens to U.S. travelers this summer, we look forward to giving Reco a broader test with many users and seeing NPS scores and traction. On the B2B side—Spotlight, Reputation Pro—these are excellent products. They were revamped during the pandemic when it was tough to sell new things to hoteliers, so uptake has been slower than we’d like. 2021, especially the back half, should be a better time for these products as hotels reopen and demand grows. We’re getting stronger interest now in the U.S., and globally these products are valuable to hotels, so we’re optimistic over time.

And to add, Experiences is a highlight this past quarter. Experiences lagged in 2020 but is coming to life in the U.S. this quarter. We said in our prepared remarks that U.S. point-of-sale booking levels for Experiences reached 50% of 2019 in March, which was up substantially from earlier in the quarter, and this has moved further up in April and into May. The U.S. as a destination has been very powerful for us and a good driver of the business. Experiences is coming back to life and we are enthusiastic about the rest of the year.

Thanks for all the detail.

Super. Thank you everyone for joining the call. Time and time again travelers have rebounded and travelers have come back to TripAdvisor. We will continue executing our strategy and ensure TripAdvisor plays an influential role in travel’s recovery. Again, I want to thank all of our employees globally, as well as all of our TripAdvisor customers worldwide. I also want to thank our shareholders for their shared belief that TripAdvisor can play a key role in shaping travel in the years ahead. Please get your vaccines and stay safe. I look forward to updating everyone on our progress next quarter.

This concludes TripAdvisor’s first quarter 2021 earnings conference. You may now disconnect.