Q4 2021 Trivago NV Earnings Call
Speaker 1: Good day ladies and gentlemen, thank you for standing by and welcome to the Trivago Foot Quater Earning School 2021. At this time, all participants are enlisted only mode. There will be a presentation for all but by the question and answer session. At which time, if you wish to ask a question, you will need to press star and one on the telephone.
Good day, ladies and gentlemen, thank you for standing by and welcome to the Chicago.
What is the earnings call 2021 at par.
This time, all participants are in listen only mode there'll be a presentation fall, but by the question and answer session at which time. If you wish to ask a question you will need to press star and one on the telephone keypad I must advise you. The call is being recorded today Wednesday, the Nashville February 2022 we're pleased to be June .
Speaker 1: I'm asked advisor that the call is being recorded today. Wednesday, the 9th of February , 2020.
Speaker 1: We are pleased to be joined on the call today by Akhtel Hefer, Trilvago CEO and managing director and my tier still man Trilvago CFO and managing director.
On the call today by OXXO, Kifah, Xibalba, CEO and managing director and my T is still not too bad with CFO and managing director.
The following discussion including responses to your questions reflect management's view as of today Wednesday February the nice 2022 only.
Speaker 1: The following discussion, including responses to your questions, reflect management view as of today, Wednesday, February 9th, 2022 only.
<unk> does not undertake any obligation to update or revise this information as always some of the statements made on today's call are forward looking typically preceded by words, such as we expect we believe we anticipate or similar statements.
Speaker 1: Travago does not tend to take any obligation to update or revise the information.
Speaker 1: As always, some of the statements made on today's call are forward-rooking, typically preceded by words such as, we expect, we believe, we anticipate or similar.
Please refer to the fourth.
Speaker 1: Please refer to the fourth quarter 2021 operating and financial review and the company's other filings with the SEC for the information about factors which could cause triggergous actual results to differ materially from this forward-looking state.
Quarter, 2021, operating and financial review and the company's other filings with the SEC for the information about factors, which could cause <unk> actual results to differ materially from these forward looking statements.
You will find reconciliations of non-GAAP measures to the most comparable GAAP measures discussed today in <unk> operating and financial review, which is posted on the company's IR website at IR Dot two vogl dot com.
Speaker 1: You will find reconciliations of non-GAAP measures to the most comparable GAAP measures discussed today in Trivago's operating and financial review, which is posted on the company's IR website at IR.trivago.com.
Speaker 1: you are encouraged to periodically visit Trivago's investor relations site for important content. Finally, unless otherwise stated, all comparisons on this call will be against results for the comparable period of 2020. With that, let me turn the call over to…
You are encouraged to periodically visit to Bob with Investor Relations site for important content finally, unless otherwise stated all comparisons on this call will be against results for the comparable periods of 2020 with that let me turn the call over to OXXO shipper.
Thank you everyone for joining us today for Q4 2021 earnings call.
Speaker 2: Thank you everyone for joining us today for our Q4 2021 earnings call. I hope everyone managed to take a break and get some rest leading into new year.
I hope everyone managed to take a break and get some rest leading into new year.
2021 is now behind Us and we believe the worst is too finely.
Speaker 2: 2021 is now behind us and we believe the worst is to finally
More and more countries have lifted restrictions and there seems to be growing consensus that we've reached a new normal.
Speaker 2: More and more countries have lifted restrictions and there seems to be growing consensus that we've reached the new normal with a highly contagious virus that thanks to a combination of vaccinations, precautions and treatment can be brought under control.
With a highly contagious virus that thanks to a combination of vaccinations precautions and treatment can be brought under control.
Speaker 2: The last two years have been very tough for the travel industry and for our employees.
The last two years have been very tough for the travel industry.
For our employees.
Speaker 2: Despite dealing with a lot of change and uncertainty, I'm very proud of how well they have managed the situation.
Despite dealing with a lot of change and uncertainty I'm very proud of how well they have managed the situation.
How they have kept their confidence and commitment to serve our travelers as they return.
Speaker 2: how they have kept their confidence and commitment to serve our travelers as they return.
We're looking forward to what we think will be a strong spring and summer travel season.
Speaker 2: We're looking forward to what we think will be a strong spring and summer travel season.
Speaker 2: City Treps will come back and should provide us with some day wind during summer and the second half of the year.
<unk> will come back and should provide us with some tailwind during summer in the second half of the yeah.
Labor shortages will be a key challenge for the hospitality industry during the recovery and as industry players are reacting with different strategies.
Speaker 2: Labour shortages will be a key challenge for the hospitality industry during the recovery and its industry players are reacting with different strategies. We will see a combination of supply shortages, lower service levels and higher prices, with a letter becoming the dominant strategy over time.
We will see a combination of supply shortages lower service levels at higher prices with a laptop, becoming the dominant strategy all the time.
And that dynamic we believe that meta will play a key role in the recovery.
Speaker 2: In that dynamic, we believe that Meta will play a key role in the recovery.
Speaker 2: We think there will be a strong emphasis from consumers on finding accommodation that fits their needs and budgets without overpaying for services that will no longer receive.
We think that will be a strong emphasis from consumers on finding accommodation that fits their needs and budgets without overpaying for services that will no longer receive.
We have used 2021 to prepare for the recovery this year with significant progress across the business ranging from our cloud migration rollout of CPA invoicing. The launch of our first new b to b products and various marketing and product tests.
Speaker 2: We have used 2021 to prepare for the recovery this year with significant progress across the business, ranging from our cloud migration, rollout of CPA invoicing, the launch of our first new B2B product and various marketing and product tests.
Speaker 2: For us, this year is all about focusing on our core value proposition and supporting our users when they re-experience travel, when they rediscover the value of price comparison.
For us this year is all about focusing on our core value proposition and supporting our users when they re experienced travel when they rediscover the value of price comparison.
Great. Thank you.
Speaker 3: Great, thank you, Axel, and good morning, everyone, also for me. We are very pleased with our fourth quarter financial results. Our net income increased significantly from 5.5 million euro in the third quarter to 15.2 million euro in the fourth quarter.
Good morning, everyone also from me.
We are very pleased with our fourth quarter financial results.
Our net income increased significantly from $5 5 million in the third quarter to $15 2 million in the fourth quarter.
Speaker 3: The increase reflects our strong operating results. In addition, we took advantage of a COVID-19 subsidy program in relation to losses incurred in the fourth quarter of 2020 and the first half in 2021 and received a payment of 12 million Euro from the drum government.
The increase reflects our strong operating results in.
In addition, we took advantage of a COVID-19 subsidy program in relation to losses incurred in the fourth quarter of 2020, and the first half in 2021 and received a payment of 12 million Euro from the German government.
Our operating income and our adjusted EBITDA, both of which are not affected by the subsidy payment increased sequentially as were exceeding our own expectations.
Speaker 3: Our operating income and our adjusted EBITDA, both of which are not affected by the subsidy payment, increase sequentially as well, exceeding our own expectations.
Although we saw a larger seasonal decline in travel demand in November and December than in pre pandemic years.
Speaker 3: Although we saw a larger seasonal decline in travel demand in November and December than in pre-pandemic years, it was less pronounced than in 2020 when most European countries had implemented full lockdowns, something that did not repeat this year.
It was less pronounced than in 2020, when most European countries had implemented full lockdowns something that did not repeat this year.
Amidst the uncertainty due to the spread of the new COVID-19, Varian Omicron, we cut back on our planned marketing activities, which together with our continued cost discipline resulted in an improvement in our profit margin.
Speaker 3: It must be uncertainty due to the spread of the new COVID-19 variant Omicron. We cut back on our plant marketing activities, which together with our continued cost discipline resulted in an improvement in our profit margin.
In the fourth quarter, we achieved an adjusted EBITDA margin of 22% the highest margin since we have become a public company in 2016.
Speaker 3: In the fourth quarter we achieved an adjusted EBITDA margin of 22%. The highest margin since we have become a public company in 2016.
Globally qualified referrals and refer revenue increased 54% and 184% year over year, respectively.
Speaker 3: Globally qualified referrals and referral revenue increased 54% and 184% year over year, respectively.
Many countries introduced new travel restrictions during the quarter and travel demand started to slow down in November with a spread of Omi kroner.
Speaker 3: Many countries introduced new travel restrictions during the quarter and travel demands started to slow down in November with the spread of Omicron.
Speaker 3: However, we did not observe full lockdowns or travel bands to the same extent as last year, which had a positive impact on our year-over-year growth number.
However, we did not observe full lockdowns or trade events to the same extent as last year.
Which had a positive impact on our year over year growth numbers.
This is particularly true for our segment developed Europe , while referred revenue in that segment almost half in December compared to October the year over year increase for the whole quarter was the highest among our segments as a result of the comp effect with referred revenue up over 300%.
Speaker 3: This is particularly true for our segment developed Europe . While refer revenue in that segment almost half in December compared to October , the year over year increase for the whole quarter was the highest among our segments as a result of the comp effect, with refer revenue up over 300%.
Speaker 3: In America, the performance throughout the quarter was more stable, as we experienced the normal seasonal drop in November and December in the US, which was partly offset by the seasonal increase in Latin America.
In America the performance throughout the quarter was more stable as we experienced the normal seasonal drop in November and December in the U S, which was partly offset by the seasonal increase in Latin America.
Our segment rest of World continued to lag in the recovery and did not significantly improve sequentially in the fourth quarter.
Speaker 3: Our segment rest of the world continued to lag in the recovery and did not significantly improve sequentially in the pause quad.
Speaker 3: As we usually do in the fourth quarter, we cut back our marketing investment in all regions as we approach the low season in many of our core markets.
As we usually do in the fourth quarter, we cut back our marketing investments in all regions as we approach the low season in many of our core markets.
Speaker 3: This led to the sequential increase in ROAs from 139% in the third quarter to 199% in the fourth quarter.
This led to the sequential increase in our Ross from 139% in the third quarter to 199% in the fourth quarter.
Speaker 3: For the full year, we were able to keep our marketing efficiency relatively stable at 156% to send loss while growing our revenue 47% over year.
For the full year, we were able to keep our marketing efficiency relatively stable at 156% Ros, while growing our revenue 47% year over year.
Other revenue increased to $5 4 million in the fourth quarter or by 86% year over year, partly driven by a reclassification from a further revenue to other revenue during the fourth quarter.
Speaker 3: Other revenue increased to 5.4 million euro in the fourth quarter or by 86% year over year, partly driven by a reclassification from referral revenue to other revenue during the fourth quarter.
In addition revenue from new <unk> products contributed to the increase as we wrote in our shareholders letter. We are very early in the process of rolling out B to B products and it does not represent a significant part of our total revenue today, but.
Speaker 3: In addition, revenue from new B2B products contributed to the increase. As we wrote in our shareholders letter, we are very early in the process of rolling out B2B products, and it does not represent a significant part of our total revenue today.
But we believe this is an exciting opportunity for us to leverage our data and tech infrastructure.
Speaker 3: But we believe this is an exciting opportunity for us to leverage our data and tech infrastructure.
Excluding advertising expenses, our operational expenses increased by 11, 1% compared to the fourth quarter in 2020.
Speaker 3: Excluding advertising expenses, our operational expenses increased by 11.1% compared to the 4th quarter in 2020.
The increase was mostly driven by higher professional fees and by items that scaled with the traffic on our platforms like cloud related cost or digital said, Texas.
Speaker 3: The increase was mostly driven by higher professional fees and by items that scare with the traffic on our platforms like cloud-related costs or digital sales tax.
In addition commission fees related to our new White label B to B products are included in selling and marketing we.
Speaker 3: In addition, commission fees related to our new white label B2B products are included in selling and marketing. We did not incur such fees in the fourth quarter of 2020.
We did not incur such fees in the fourth quarter of 2020.
Going forward Commission fees will depend on our ability to scale certain b to b product.
Speaker 3: Going forward, commission fees will depend on our ability to scale certain B2B products. This cost item will therefore scale with revenue that we report under other revenue.
This cost item will therefore scale with revenue that we report on the other revenue.
Speaker 3: We further improved our cash position as cash and cash equivalents increased from 194.8 million Euro at the beginning of the quarter to 256.7 million Euro at year end, an increase of 62 million Euro.
We further improved our cash position as cash and cash equivalents increased from $194 8 million at the beginning of the quarter to $256 7 million at year end, an increase of 62 million.
Speaker 3: The increase reflects our strong profitability in the quarter, as well as the decrease in our accounts receivables balance due to the seasonal decline in revenue.
The increase reflects our strong profitability in the quarter as well as a decrease in our accounts receivable balance due to the seasonal decline in revenue.
Looking at trends on our platform in January we did observe the usual seasonal uptick in qualified referrals at the beginning of the year, but the increase was less pronounced compared to pre pandemic yet.
Speaker 3: Looking at trends on our platform in January , we did observe the usual seasonal uptick in qualified refers at the beginning of the year, but the increase was less pronounced compared to pre-pandemic years.
Trevor overall continues to be impacted by the Covid situation and in particular Intercontinental travel is still significantly below pre pandemic levels.
Speaker 3: Travel overall continues to be impacted by the COVID situation and in particular intercontinental travel is still significantly below pre-pandemic level.
Speaker 3: But there are signs that the situation overall is improving. In our core European markets, we saw a shift of click share from destinations like Dubai, which was very popular in January 2021, back to big cities like London, Berlin or Paris.
But there are signs that the situation overall is improving in our core European markets. We saw a shift of click share from destinations like Dubai, which was very popular in January 2021 <unk>.
Two big cities like London or Paris.
Very recently, a few countries like Denmark, or Norway lifted almost all restrictions.
Speaker 3: Very recently, a few countries like Denmark or Norway lifted almost all restrictions.
The UK has lifted most restrictions as well as of February 11th travelers that are vaccinated do not need a negative test anymore when entering the UK for example.
Speaker 3: The UK has lifted most restrictions as well. As of February 11th, travelers that are vaccinated do not need a negative rest anymore when entering the UK, for example.
Overall, we saw an improvement in qualified referrals and revenue referral revenue year over year growth rates in our segment developed Europe and generate.
Speaker 3: Overall, we saw an improvement in qualified referral and referral revenue year-over-year growth rates in our segment Develop Europe in January .
Speaker 3: Qualified refers, grew by over 200% in January , while refer a revenue increased by over 400% year on year.
Qualified referrals grew by over 200% in January .
Refer revenue increased by over 400% year on year.
Let me remind you that the high growth rates in that segment are also a result of the low base in January 2021, when most countries in Europe had follow up full lockdowns in place.
Speaker 3: Let me remind you that the high growth rates in that segment are also a result of the low base in January 2021 when most countries in Europe had full lockdowns in place.
In Americas, our qualified refer to year over year growth rate was stable compared to the fourth quarter at around 30%.
Speaker 3: In America, our qualified referral year over year growth rate was stable compared to the 4th quarter at around 30%.
Speaker 3: Our revenue per qualified referral growth decelerated from above 100% in the fourth quarter to be low 100% in January . As a result, our referral revenue grew around 150% over the end of January .
Our revenue per qualified referral growth decelerated from above 100% in the fourth quarter to below 100% in January .
As a result, our referral revenue grew around 150% year over year in January .
And as mentioned before our segment rest of World continues to lag in the recovery.
Speaker 3: And as mentioned before, our segment rest of the world continues to lack and they will cover it, qualified referral and referral revenue year-over-year growth rates were around 15% and 30% in January respectively.
Clifford referred and referral revenue year over year growth rates were around 15% and 30% in January respectively.
That brings me to our outlook for the first quarter.
Speaker 3: We expect that the positive trend in our year over your growth rate in January compared to December will continue through the quarter as we are getting more and more signs that countries are gradually lifting restrictions again.
We expect that the positive trend in our year over year growth rates in January compared to December will continue through the quarter as we are getting more and more signs that countries are gradually lifting restrictions again.
Speaker 3: Given the uncertainty due to the spread of Omicron, we were cautious with our marketing investments in Europe in January , but we are becoming now more optimistic and expect to increase our investments in the near term.
Given the uncertainty due to the spread of Omicron, we were cautious with our marketing investments in Europe in January but we are becoming now more optimistic and expect to increase our investments in the near term.
Speaker 3: As discussed over the last couple of quarters, we significantly reduced our operating expenses at the beginning of the pandemic in 2020.
As discussed over the last couple of quarters, we significantly reduced our operating expenses at the beginning of the pandemic in 2020.
Speaker 3: Restruction costs in 2020 that did not repeat in 2021. Lower average headcount and lower office expenses were the main drivers for the further decrease in our operating expenses in 2021 compared to 2020.
Restructuring costs in 2020 that did not repeat in 2020 one.
Average head count and lower office expenses were the main drivers for the further decrease in our operating expenses in 2021 compared to 2020.
We expect that our total operating expenses in 2022 will be above 2021, due to higher personal cost and cost items that scale with revenue, but below 2020 levels.
Speaker 3: We expect that our total operating expenses in 2022 will be above 2021 due to higher personal costs and cost items that scale with revenue, but below 2020 level.
As a result, we expect our operating expenses to remain significantly below pre pandemic levels.
Speaker 3: As a result, we expect our operating expenses to remain significantly below pre-pandemic levels. And with that, let's open the line for questions. Operator, we are now ready to take the first question, please. Thank you.
And with that let's open the line for questions.
Operator, we are now ready to take the first question. Please.
Thank you.
The first question comes from the line of maybe come from.
Securities. Please ask your question.
Yeah.
Yeah, Hi, Thanks, and frankly.
Maybe just a couple of questions. So in your commentary.
Speaker 4: Maybe you said a couple questions. So in your commentary, you guys talk about increasing when awareness and branded attending. If I had to think about.
You guys talk about increasing.
Then.
Got it.
Turning.
If I had to think about.
Yeah.
Speaker 4: as a percentage of your revenue versus where it used to be before the pandemic. How should I think about that? Or maybe just give us a sense of where ROAS can be versus where it was before the pandemic. And then in terms of just the full year, how should we think about EBITDA? Are you thinking you will be able to maintain your millions because of the increased advertising maybe not naturally? How should we think about that? Thank you.
As a percentage of your revenue versus where.
It used to be before the panel how should I think about that.
Just given the 10 software rollout can be versus where it was.
For the pandemic.
And then.
In terms of just the full year, how should we think about EBITDA are you thinking you will be it will be.
Maintaining our because of the increased advertising maybe.
No naturally it how should we think about that.
Thank you.
Sure Yeah. Thanks.
So on brand marketing and Ross.
Speaker 3: So on brand marketing and ROAS for the year, maybe if I take a step back, coming out of the peak season last summer, we reduce our brand marketing spend in the fourth quarter.
For the year.
Maybe if I take a step back.
Coming out of the peak season last summer, we reduce our Brent market.
<unk> marketing spend in the fourth quarter.
Speaker 3: as we have always done historically, with a lower share of brand spend.
As we have always done historically with a lower share of brand spend.
Speaker 3: With the spread of the new COVID variant Omicron, we reduced our spend even more in anticipation of lower travel demand towards the end of the year. There was one driver of the high profitability.
With the spread of the new covert variant omicron, we reduce our spend even more in anticipation of lower travel demand towards the end of the year that was one driver of the high profitability.
Speaker 3: In Europe , we remain cautious at the start of the year as number of cases are still high. And we did not see the same seasonal uptick in travel demand as in pre-pandemic years.
In Europe , we remain cautious at the start of the year.
A number of cases is too high and we did not see the same seasonal uptick in travel demand as in pre pandemic years.
Speaker 3: And in general, our approach this year will not change. We will...
And in general our approach this year will not change we will.
Speaker 3: Remains flexible and take market by market decisions based on the respective covert situation Last year in summer we saw some good opportunities in some of our core markets to invest
Remained flexible and take market by market decisions based on their respective corporate situation.
Last year in some or we saw some good opportunities in some of our core markets to invest.
Speaker 3: We have learned that when travel demands start to come back, it can make sense to have a broader marketing mix, in particular on the brand side. And what I mean by that is that in the market recovery phase, before you use a mass medium for your communication like TV, you might want to scale up with channels that have better targeting capabilities.
We have learned that when travel demand starts to come back it can make sense to have a broader marketing mix in particular on the brand side and what I mean by that is that in the market recovery phase before use of mass medium for communication like TV.
You might want to scale up with channels that have better targeting capabilities and of course, as we ramp up our marketing spend or what will come down compared to the fourth quarter.
Speaker 3: Of course, as we ramp up our marketing spend, our rewards will come down compared to the fourth quarter.
Speaker 3: We are optimistic that Europe will recover sooner this year than last year and plan to invest into the recovery. Now, obviously...
We are optimistic that Europe will recover sooner this year than last year and plan to invest into the recovery now obviously.
What that means in terms of.
Speaker 3: What that means in terms of spend as percentage of revenue, it's hard to predict that at this point. Again, our philosophy has not changed. We are looking for long-term profitable growth.
Spend as percentage of revenue.
It's hard to predict that at this point.
Our philosophy has not changed we are looking for long term profitable growth.
Speaker 3: One thing I would mention as well is that this year we won't benefit to the same extent from prior year spendings like we did in the past.
One thing I would mention as well is that this year, we wont benefit to the same extent from prior year spending like we did in the past.
Speaker 3: So it will take multiple years to build up our brand baseline again. And that's the approach we are taking. And whenever we see that it makes sense to invest, we will. But again, it will take time.
So it will take multiple years to build up our brand baseline again.
And that's the approach we're taking.
Whenever we see that it makes sense to invest we will but again it will take time.
And then on your <unk>.
Speaker 3: And then on your second question,
Second question.
Speaker 3: regarding full year EBITDA for the year. I mean, I cannot give you a specific target or range for 2022. But related to what I just said, it depends on how we scale up, how fast we scale up, what opportunities we see, how much we want to invest.
Regarding full year EBITDA for the year.
I cannot give you a specific target or range for 2022.
But related to what I just said.
It depends on how we scale up how fast we scale up what opportunities we see how much we want to invest.
Speaker 3: There are two other things I would call out. Let's assume the market were to recover to 2019 levels, which we don't think will be the case for the full year. But let's assume that the case, then our recovery will depend on how certain segments are recovering. We talked about city trips in the past.
There are two other things I would call out.
Let's assume the market virtual recover to 2019 levels, which we don't think will be the case for the full year.
Let's assume that's the case then our recovery will depend on how certain segments are recovering we talked about city trips in the past.
Speaker 3: The relative recovery of hotels is also important. So that would play a role in how fast our direct traffic based land is coming back as well, and we'll also determine how we set investment levels. And if you take that all together, that will then drive our growth margin profile for the rest of this year.
The relative recovery of hotels is also important.
So that will play a role and how fast.
Direct traffic baseline is coming back as well and we will also determine.
How we set investment levels and if you take that altogether that.
Then drive our gross margin profile.
For the rest of this year.
Thank you.
Thank you. The next question comes from the line of Brian Fitzgerald from Wells Fargo. Please ask your question.
Speaker 1: Thank you. The next question comes through the line of Brian Fitzgerald from Wells Fargo. Please ask the question.
Speaker 5: Um, thanks. I want to know if you talk a little bit about how other tises are using that the CPA ad format. Have they been adjusting their approach?
Thanks, I wanted to know if you can talk a little bit about how advertisers are using the CPA AD format have they been adjusting their approach.
Speaker 5: To how they use that, have they been kind of altering it as we've had kind of in-ten outs and waxing and waning of COVID in Omicron? Are they approaching the use of the format any differently? And maybe as we, it feels like we're getting to the exit of Omicron, are you seeing any indications that they're using CPA?
They use that have they been.
Kind of altering Ed as we've had kind of ins and outs and waxing and waning of Oh.
Covid in <unk> are they approaching they use the format any differently.
And maybe as as we it feels like we're getting to the to the exit.
Omicron are you seeing any indications that theyre using CPA differently.
Sure.
Speaker 2: Sure, it's very different to be honest. There is no consistent trend. I mean generally speaking, a lot of our advertisers move to
It's very different to be honest there is now no contest on trend I mean generally speaking.
Lot of our advertisers move to the.
Speaker 2: the CPA model to reduce their risk and uncertainty overall, but also to deal with lower data or lower volumes and as a consequence, data scarcity for their own building algorithm.
The CPA model to reduce their risk and.
And uncertainty.
Overall, but also to deal with lower.
Data are lower volumes and as a consequence data scarcity for their own bidding algorithms.
<unk>.
Speaker 2: And what we've seen, we've basically seen everything, some advertisers are then selectively, and that is possible, running CPC campaigns in parallel to CPA campaigns where they can obviously push their own volumes much more targeted and much more quickly than our algorithm would do that, so they can over-invest or under-invest at their own choice.
And what we've seen we've basically seen everything some advertisers are then selectively.
And that is possible.
Running CPA CPC campaigns in parallel to CPA campaigns, where they can obviously push their own volumes much more targeted and much more quickly than our algorithm would do that so they can overinvest, our under invest at their own choice.
Speaker 2: which is more difficult with the CPA algorithm.
Which is more difficult with CPA algorithm.
Speaker 2: Some have stayed completely on CPA. So it really depends on the specific situation of the specific advertiser in the specific market. And given that the markets are all over the place right now still with very different situations and dynamics.
Some have stayed completely on CPA. So it really depends on the specific situation of the specific advertiser in the specific market and given that the markets are all over the place right now still it was very different situations in dynamics.
Speaker 2: There is really no clear answer to your question, but the advertisers do have full flexibility and that's a big benefit that we see. With the rollout of the CPA model.
There is no clear answer to your question, but the advertisers do have full flexibility and that is that's a big benefit that we see.
With the rollout of the CPA model.
Got it and then one quick follow up.
Speaker 5: Got it. And then one quick follow up. It sounded like
It sounded like.
You have some some permanent opex leverage even as we open up you've talked about.
Speaker 5: You have some permanent op-x leverage, even as we open up, you talked about 22 op-x, still gonna be.
22, opex still going to be.
<unk> significantly below 2020 levels is there.
Speaker 5: significantly below 2020 levels. Is there
Are you taking a different approach to returning to the office did you did you just find some.
Speaker 5: Are you taking a different approach to returning to the office? Did you just find some?
Speaker 5: kind of permanent synergies with specific op-ex lines that are leading you to believe, as we emerge from this, when we get back up to the same opt-empo, we've got permanent synergies that we found. Are you returning the office?
Kind of permanent synergies.
The specific opex lines that are that are leading you to believe hey, as we emerge from this when we get back up to the same op tempo.
We've got permanent synergies that we found.
Are you returning to the office less days a week have you consolidated office footprint that type of thing.
Speaker 5: less days a week, have you consolidated office footprint, that type of thing? Yeah, certainly.
Yes sure so.
Regards to the last part of your question, how we returning to the office to the campus.
Speaker 3: Regarding the last part of your question, how are we returning to the office, to the campus? It's still an open question. We tried different things now, we moved to a hybrid setup last year, but then it was affected by the COVID situation. We had quite a few people talents back doing summer in the office and then had to switch back to a remote first, which we are still doing.
It's still an open question I mean, we tried different things now we move to a hybrid setup last year, but then it was.
<unk> by the Covid situation, we had quite a few people talent back doing some are in the office and then had to switch back to a remote first.
Which we are still doing today.
But overall, what we did.
Speaker 3: We did in 2020, was looking at the structure. I mean, we talked about the restructuring and we reduced our headcount and related to that, we also decreased our office space. So we have done that. So that's one factor. Personal cost related to the headcount production is another one. In 2020, we incurred some restructuring costs that we don't have now anymore, obviously. And that is leading to the decrease as well. And I think...
In 2020.
<unk> was looking at the structure I mean, you talked about the restructuring.
We reduced our head count and <unk>.
Related to that we also decreased our office space. So we have done that so thats one sector of personal costs relate to the head count reduction is another one.
In 2020, we incurred some restructuring costs.
We don't have now any more obviously and that is leading to the decrease as well.
And I think those are the big items and.
Speaker 3: And I think those are the big items and we believe with the cost base that we're expecting for this year that this is sustainable for the foreseeable future. And we don't plan to ramp up that. Got it. Thanks.
We believe with a cost base that we are expecting for this year.
Net.
This is sustainable for the foreseeable future and we don't plan to to ramp up that.
Got it thank you actual activities.
Thank you.
Thank you. The next question comes from the line of Shyam Patil from <unk>. Please ask your question.
Speaker 1: The next question comes to the line of Shayan Patil from SIG.
Speaker 5: Hey guys, this is Jared on for Sean. Thanks for taking the question. One for you on booking windows. Just do mind unpacking the booking windows that you saw that were there any markets that may be remained a little bit more normalized despite increased COVID uncertainty. And then just what are you expecting for booking windows as we roll through the year? Thanks.
Hey, guys. This is Jared on for Sean Thanks for taking the question.
One for you on booking Windows, just do you mind unpacking the booking windows that you saw that were there any markets that may be remained a little bit more normalized despite increased uncertainty and then just what are you expecting for booking windows as we roll through the year.
<unk>.
Yes sure things.
So in our data.
Speaker 3: So in our data, we see that overall booking windows are still shorter compared to pre-pandemic and reflecting the medium to long-term uncertainty.
We see that overall booking windows are still shorter compared to pre pandemic, reflecting the medium to long term uncertainty.
Speaker 3: In my view, in the fourth quarter in Europe , the window shortened significantly from October to December .
In my view.
The fourth quarter in Europe , the window shortened significantly from October to December .
Speaker 3: Now in January it has normalized again going back to October levels. In general I believe there's a good indication that people are still cautious and do not plan a long time in advance.
Now in January it has normalized again going back to October levels.
In general I believe Theres, a good indication that people are still cautious and do not plan a long time in Atlanta.
Speaker 3: And similar to last year, there's likely huge pent-up demand. In Europe , we saw that unleashing in mid-April to July . This year, I think it could be more balanced, as currently we see that volumes are not dropping as much as in Q1 last year. And we expect a broader recovery in spring already.
And similar to last year.
Theres likely huge pent up demand.
Europe , we saw that unleashing in mid April to July .
This year I think it could be more balanced as currently we see that volumes are not dropping as much as in Q1 last year.
We expect a broader recovery in spring already.
Great. Thank you get onto the system.
Yes. Thanks.
Thank you. The next question comes from the line of Lee from UBS. Please ask your question.
Speaker 1: Thank you. The next question comes from Lahn of Roed Wombsley from UBS. Please ask your question.
Speaker 6: I think this is Chris on for the Lloyd. Maybe two if I can. In the shareholder letter, you talk about leaning back into brand marketing to take some market share. Can you just unpack that common and address taking share? It was just come direct that taking share from other meta channels or is this more direct at taking capron traffic back that was going direct or directly to the OTAs?
Hi, Thanks, This is Chris on for Lloyd.
Maybe two if I can in the shareholder letter you talked about leaning back into brand marketing to take some market share can you just unpack that common and address taking share.
I direct that taking share from other meta channels or is this more directly taking catherine traffic back that was going direct or directly to the otas.
Speaker 6: And then second question here, looks like American referral volumes recovered more than our PQR. Is it fair to say that the US market showed that much stronger demand dynamics or was there something else at play that we need to be thinking about here? Thanks.
And then second question here.
It looks like American referral volumes recovered more than our peak you are is it fair to say that the U S market showed.
That much stronger demand dynamics or was there something else at play that we need to be thinking about here.
Yes.
Speaker 3: Yeah, sure. Let me start with the first question first.
Sure Let me start with your first question first.
Speaker 3: How are we thinking about brand marketing and gaining share? I think
How are we thinking about brand marketing and gaining share I think.
And there are two points in the shareholder letter as well one is on innovation.
Speaker 3: There are two points in the Schaulaletta as well, one is on innovation. We have sort of believed in the very proposition of meta.
We absolutely believe in the value proposition of meter.
Speaker 3: I noted that meter under index in before under index in the recovery so far and there are various reasons for that or potential reasons for that.
We noted that meter.
Index before under indexed in the recovery, so far and they have various reasons for that are potential reasons for that.
Speaker 3: One is, I think one key driver, we talked about a lot is the underperformance of fitted trips.
One is.
I think one key driver we talked about a lot is the.
The underperformance of Citi trips.
Speaker 3: which we believe will come back and that would be a tailwind for us. And if that happens, we want to invest into that in marketing to make sure to capture our share. Now, if you look at on the product side, we think there's headroom for innovation for improving our core product and delivering even more value to our users. We are investing into that.
Which we believe will come back and.
That will be.
Tailwind for us and if that happens we want to invest into that in marketing to make sure to kept Sasha now if you look at.
On the product side, we think there's headroom for innovation for improving our core product and.
Going even more value to our users.
We are investing into that.
And by doing that.
Speaker 3: And by doing that, we think we can gain market share from our competitors.
We think we can gain market share from.
Our competitors.
Speaker 3: And then maybe related to that, we all know that there is right now more regulatory scrutiny. The DMA is coming likely this year, which might put some pressure on some of our biggest competitors and might slow them down. And we think that's a benefit for us. And if we deliver on our product or map, then we can reset and gain market share.
And then maybe maybe related to that.
<unk>.
We all know that there is right now more regulated.
<unk> scrutiny.
The DMA is coming likely this year, which might put some pressure on some of our biggest competitors and might slow them down and we think.
That's the benefit cost.
We deliver on our.
Product Road map.
Then we can reset and gain market share.
Speaker 3: And then on your second part of your question, America is the...
And then on your second part of your question.
Americas.
Speaker 3: Higher increase in qualified refers was RPQR. That was your question, right?
Greece in qualified referrals.
That was your question right.
Yes.
Yes.
<unk>.
Yes in general I think it's.
Speaker 3: Yeah, in general, I think it's with regard to RPQR, there's more volatility to be honest. And again, RPQR has as many drivers, so you have...
With regard to <unk> theres more volatility to be honest and.
Again I'll be cure as many drivers so you have.
The booking value you have.
Speaker 3: the booking value, you have conversion and you have the monetization.
Conversion and you have the monetization.
Speaker 3: And what we have seen in America in particular was a mixed effect in the RPQR as well. So, US and Canada had a higher share in the fourth quarter 2021 compared to 2020. And in those countries in North America, RPQR is higher than in South America. So, there was a positive mixed effect in there that was helping RPQR.
And.
What we have seen in Americas in particular was.
A mix effect in the <unk>, well, so U S and Canada had a higher share in the fourth quarter 2021, compared to 2020 and in those countries in North America.
Sure.
It is higher than in South America.
There was a positive mix effect in there that was helping RP QR.
<unk>.
Speaker 3: On the qualified referral side, it's similar. You have lower value qualified referral, but then the number of qualified referral is higher. So I think it's hard to make a general comment. I wouldn't call anything out why there should be very different dynamics.
On the qualified referrals side it's.
Similar lower value qualified referral, but then.
The number of qualified referrals is higher so I think it's hard to make a general comment I wouldn't call anything out why there should be very different dynamics.
Speaker 3: just saying that RPQR can be a bit more volatile due to these factors.
Just saying that.
<unk> can be a bit more volatile due to these factors.
Speaker 6: Got it. And maybe just one quick follow up on January . I think you've given year over your growth rates for January and America's in developed Europe just curious if you could contextualize those as a percentage of 2019 levels.
Got it.
Just one quick follow up on January I think you had given year over year growth rates for January in Americas in developed Europe . Just curious if you could contextualize those as a percentage of 2019 levels. Thanks.
Our referral revenue thanks.
Speaker 3: Yeah, I didn't give 2019 levels that is true. And that's for a reason because
Yes.
Didn't give 2019 level, whether it's true.
That's for a reason because.
I think.
Speaker 3: I think how we look at it right now is at the year over year.
We look at it right now.
Year over year.
Speaker 3: because in particular for Europe , I think it's a better comparison for us and an indication of what's going on.
Because.
In particular for Europe , I think it's a better comparison for us an indication of what's going on given that the number of cases of Covid cases is still high you still have travel restrictions in place, which has a direct impact on our marketing activities. So what we are doing right now is more comparable to last year then to 2019.
Speaker 3: given that the number of cases, COVID cases, is still high. You still have travel restrictions in place, which has a direct impact on our marketing activities. So what we are doing right now is more comparable to last year than to 2019.
Speaker 3: And obviously, I mean, I gave you the year-over-year growth, right? You don't have...
And obviously I mean, I gave you the year over year growth rates, you don't have the January numbers.
Speaker 3: be January numbers, but if you make some assumptions, you can, you get a sense of where we stand in terms of 2019. But in general, I think it's a better comparison to see how we are doing compared to last year than looking at 2019.
But if you make some assumptions you can.
You'll get a sense of where we stand in terms of 2019.
But in general I think it's.
It's a better comparison to see how we're doing compared to.
Two last year, then looking at 2019.
Got it thank you.
Sure. Thank you. The next question comes from the line of James Lee from Mizuho Securities. Please ask your question.
Speaker 1: Thank you. The next question comes online of James Lee from Mizuha Security. Please ask
Great. Thanks for taking my question here first one is on.
Speaker 7: Great, thanks for taking my question here. First one is on
Speaker 7: meta-assisted service business. I think Axel, you talk about labor shortage could potentially benefit the meta-business. Do you parse out the reason maybe a little bit more, any indication that'll give you the confidence here? And also, can we get a sense who are you targeting as customers and which geography are you seeing the most opportunity? And also second question is more housekeeping. Matthias, you went through pretty fast on
Meta.
This business I think Axel you talk about labor shortage could potentially benefit the meta business can you parse out the reason, maybe a little bit more any indication that will give you the confidence here and also can we get a sense, who are you targeting as customers and which geography are you seeing the most opportunity.
And also second question is more housekeeping.
<unk> as you went through pretty fast on January four Merit cuts you might go to those trends again and also our Q1 <unk>.
Speaker 7: January for America you might go through those trends again and also yeah, I'll do one one to outlook
Outlook.
Okay. So on the on the labor shortage I mean.
Speaker 2: Okay, so on the on the labor shortage, I mean, that is
That is.
You mean.
Speaker 2: to me the big theme that we will see in the months to come and probably even in the quarters to come well into next year. So through the lockdowns a lot of the
The big theme that we will see in the months to come and probably even in the quarters to come.
Well into next year, so through the Lockdowns a lot of the.
The employees and the in the travel and hospitality industry have actually moved into other sectors.
Speaker 2: the employees in the travel and hospitality industry have actually moved into other sectors. Plus there has been a bit less mobility in between countries. So there is a very significant shortage in many services in the overall travel ecosystem. And to re-staff your business will be a key competitive advantage of companies, but also of countries to be honest.
Plus there has been a bit less mobility in between countries. So so there is a very significant shortage in.
Many many.
Services, and the overall travel ecosystem and to restock.
The <unk> business.
Business will be a key competitive advantage of companies, but also of countries to be honest.
Speaker 2: And so, but it will take some time. So we will have to plan with labor shortages pretty much across the whole travel ecosystem.
And so but it will take some time. So we will have to plan with labor shortage has pretty much across the hall travel ecosystem.
Speaker 2: for this year. So what does that mean? I mean, we have seen some different strategies on reacting to that shortage already with our partners on the accommodation side.
This year, so what does that mean I mean, we have seen.
Some some different strategies on reacting to that shortage already with with our partners.
On the accommodation side some are consolidating their offerings, so basically reopening fewer hotels and they are there they tend to open the more expensive hotels.
Speaker 2: Some are consolidating their offerings, so basically reopening fewer hotels and they tend to open the more expensive hotels.
Speaker 2: and basically concentrate their employees in the bigger and more expansive properties.
And.
And basically concentrate their employees and debate.
Baker and more expensive properties, some are just reducing service levels.
Speaker 2: some are just reducing service levels, which is something, I mean, I've seen quite a bit, which is de facto also.
Something.
I've seen quite a bit.
Which is the fact also a price increase and then some are increasing process.
Speaker 2: And then some are increasing prices, increase salaries and try to actually staff up, which from our perspective will be the ultimate solution to the problem salaries have to go up in the industry to basically reduce the overall shortage.
Salaries and tried to actually staff up which from our perspective will be the.
The ultimate solution to the problems salaries have to go up.
And the industry to basically.
Reduce the overall shortage and so with this with this variety of different different strategies by different groups in different destinations as well as labor market tends to be very local we do believe that the value proposition of really comparison and navigating through all the different offers is actually greater than an a mall.
Speaker 2: And so with this variety of different strategies by different groups in different destinations as well, because labor market tends to be very local, we do believe that the value proposition of really comparison and navigating through all the different offers is actually greater than in a more steady environment.
Steady environment.
Four.
Meta is a service that is actually that's not it's not that different I mean, it's like formats meta search overall being it on our website or on our partners' website. It is actually the same thing the value of comparing.
Speaker 2: Meta as a service, I mean that is actually, that's not that different. I mean, it's like for Meta Search overall, being it on our website or on our partners website, it is actually the same thing. The value of comparing is greater than there has been before.
Is is greater than it has been before.
Speaker 2: So how do we want to grow a meta as a service? I mean, there are basically...
So how do we want to grow.
As a service I mean, there are basically two different groups of potential partners one or the first one is a quite limited group of search engines as of that that are that are also offering metal price comparisons.
Speaker 2: two different groups of potential partners. One, the first one is a quite limited group of...
Speaker 2: search engines that are also offering meta price comparisons.
Speaker 2: There are not that many search engines globally and they tend to be quite big. So that's really an individual negotiation of a partnership.
There are not that many search amgen's globally and they tend to be quite big So thats really.
An individual negotiation of a partnership.
Speaker 2: The other one is actually exactly the opposite. So there are hundreds and thousands of small travel companies.
The other one is actually exactly the opposite so they are there are hundreds of thousands of small travel companies that actually do benefit from some price comparison element integrated into their core offering.
Speaker 2: that actually do benefit from some price comparison element integrated into their core offering, which is a much more scalable business, much more spread out. So those are the two categories that we do see as an opportunity, again with a very different value proposition towards the partner, a different level of customization and also different go-to-market.
Which is which is much more scalable business is much more spread out. So those are the two categories that we do see as an opportunity again with a very different value proposition towards the partner a different level of customization and also different go to market.
Speaker 2: and geographically it's really both are quite spread out so not concentrated on any continent in particular.
And geographically.
It's really both are quite spread out so not concentrated on any continent in particular.
Speaker 3: Great, yeah, and then on January trans again, sorry for being a bit fast there. So let me let me repeat what I what I said before.
Great and then on general trends again, sorry for being a fast there. So let me let me repeat what I said before.
Speaker 3: So for America specifically if you look at the qualified referral you over your growth rate in Q4 that was 30%
So for Americas, specifically, if you look at the qualified referral year over year growth rate in Q4 that was <unk>.
30%.
And I said in January it was stable around 30% as well so in terms of year over year growth rate.
Speaker 3: And I said in in January it was stable around 30% as well. So in terms of your year growth rate, similar in January as for the fourth quarter.
Similar in January for the fourth quarter.
Speaker 3: For RPQR revenue per qualified referral.
For our PQ, our revenue per qualified referral.
Speaker 3: We reported 114% increase year over year in the fourth quarter and there I said that decelerated a little bit so it's a bit lower in January .
We reported a 114% increase year over year in the fourth quarter and the asset.
That decelerated a little bit so it is a bit lower in January .
Speaker 3: Close to 200%, but not above as in the fourth quarter.
Close to 100%, but not above us in the fourth quarter and then if you take that together our referral revenue in that segment.
Speaker 3: And then if you take that together, our referral revenue in that segment grew around 150% the over year in January .
150% year over year in January .
Sure.
I hope that was clear now and then.
Speaker 3: I hope that that was clearer now. And then in terms of outlook, so what I said is.
In terms of outlook, so what I've said is.
That we expect the positive trend in the year over year growth rates in January compared to December will continue so what's important to note obviously is that.
Speaker 3: that we expect the positive trend in the year of year growth rates in January compared to December will continue so.
Speaker 3: What's important to note obviously is that the numbers we reported for Q4 are averages for the whole quarter, but we did see, as I mentioned, deceleration and growth.
The.
The numbers, we reported for Q4 averages for the whole quarter, but we did see as I mentioned the deceleration in growth.
Speaker 3: from October to November and then December . So if you now just compare January to December , we did see that growth rates accelerated again. Obviously you can see that because we are not reporting December year over year growth rate.
From October to November and then December so if you now just compare generated through December .
We did see that growth rates accelerated again, obviously, you can see that because.
We are not reporting December year over year growth rate.
Speaker 3: but January was better in terms of year-over-year growth rate than December .
But <unk>.
January was better in terms of year over year growth rate.
December .
Speaker 3: And again, I think the positive trend where we expect that to continue in particular, given that we are seeing signs that more and more markets and countries are lifting restrictions and opening up. So sentiment seems to shift a little bit. And with that, we optimistic that travel will come back. And sooner than we saw last year, where it took until mid-April, when we saw a decent increase in volumes in Europe . For example,
And.
Again, I think the positive trend that we expect that to continue in particular given that.
We are seeing signs that more and more markets and countries are lifting restrictions and opening up so sentiment seems to shift a little bit and with that we are optimistic that travel will come back and sooner than we saw last year.
It took until mid April when we saw a decent increase in volumes in Europe for example.
Great. Thanks, so much.
Thank you. The next question comes from the line of Doug Anmuth from Jpmorgan. Please ask your question.
Speaker 1: Thank you. The next question comes to the line of Doug and Muth from GP Morgan. Please ask your question.
Great. Thanks for taking the question this is Steven on.
Speaker 8: Right, and for taking the questions, this is Bailey Alford's, I have two first ones. And in your letter, you talked about there being a ten year space for innovation and price comparison for accommodations. Could you elaborate on this a little bit more and further, where you're seeing opportunities to innovate? And then in terms of that accommodation mix, as you see here then.
I have two.
The first one.
You talked about there being a plenty of space and the vision and price comparison for our competitions could you just elaborate on this a little bit more on Phil.
Are you seeing opportunities to innovate and then in terms of the accommodation mix as you see it.
Hum recover are you seeing some of those shifts back to hotels.
Speaker 8: recover, are you seeing some of those in my shift back to the hotels or do you anticipate a certain accommodation remaining in strong, strong, in demand? Let's see if we can go up to the summer travel.
Just to pay alternative accommodation.
And strong strong independent as you look out to the summer travel.
Speaker 2: Yeah, so on your first question, where is actually room to innovate? To be honest, everywhere. So we are quite excited about the opportunity across the whole system.
Yes so.
On your first question, where is actually room to innovate to be honest everywhere.
So we are quite excited about the opportunity across the whole system and it's not the way to think about it is not so much Oh. There is one killer feature missing it is more an optimization across every single SAP out. So when you think about it we basically.
Speaker 2: It's not the way to think about it, it's not so much, oh there is one killer feature missing, it is more an optimization across every single step. And so when you think about it...
Speaker 2: We basically connect to the broader set of advertisers in the industry, so that connectivity has room to be optimized. The way we are fetching prices, the way we are caching prices, the way we are selecting the prices, the way we are processing the prices, etc. So if you really go through the whole step.
<unk> to the broadest set of advertisers in the industry. So that connectivity has room to be optimized the way we are fetching prices. The way. We are cashing price is the way we are selecting the prices. We are we are getting the way we are processing the prices et cetera. So if you really go through the whole step there, we see potential pretty much.
Speaker 2: There we see potential pretty much at every single step, also in the interface towards the users. And there are quite a few ideas that we have.
At every single step also in the in their interface towards the users are they are there.
Quite a few ideas that we are having but it is it is more spread out across the hall.
Speaker 2: but it is more spread out across the whole system and then the different steps in the system rather than...
<unk> system and then the <unk>.
<unk> in the system rather than okay. There is theres one feature that will make all of the difference. So a lot of incremental improvements that really add up that's the way to think about it.
Speaker 2: Okay, there is this one feature that will make all of the difference. So a lot of incremental improvements that really add up, that's the way to think about it.
And then on your second question in terms of recommendation with hotels.
Speaker 3: And then on your second question, alternative accommodation was hotels. I mean, you know that we do not disclose our share every quarter. In 2020, we called out that the global share of alternative accommodation on our platform was at some point above 20%.
I mean, you know that we do not disclose or share every quarter.
<unk> thousand 20 recall that the global share of alternative affirmation of our platform was at some point above 20%.
With further recovering in summer last year, we saw that the share was coming down a bit again.
Speaker 3: With travel recovering in summer last year, we saw that the share was coming down a bit again. And right now it is still above 2019 levels, but below 2020 levels for us.
And right now it is still above 2019 levels, but below 2020 levels for us.
Speaker 3: So I think AA has a meaningful share in our traffic mix. But short term, I would see the bigger upside for us in hotels. In particular, when city tips are catching up and people are more comfortable in traveling outside the peak holiday season, I would expect that hotels outperform AA on our platform. Yeah.
So I think.
Has a meaningful share in our traffic mix.
But short term I would see the big upside for us in hotels.
In particular, when <unk> are catching up and people are more comfortable and traveling outside the peak holiday season.
I would expect that hotels outperformed on our platform.
Yep.
Okay, great. Thank you.
Thank you Dear participants as a reminder, if you wish to ask a question. Please press star and one on your telephone keypad.
Speaker 1: A few dear participants as a reminder, if you wish to ask a question, please press an icon.
The next question comes from the line of Kevin Kevin Kopelman from Cowen. Please ask your question.
Speaker 1: next question comes from Colindad and
Speaker 9: Thank you so much. I had a follow up on your commentary on January .
Thank you so much.
I had a follow up on your commentary on January trends.
Speaker 9: We know that the dynamics have been changing quite a bit over the past couple of weeks as you referenced.
We know that the dynamics have been changing quite a bit over the past couple of weeks as you referenced.
To some degree anyway could you can you talk about what youre seeing over the past.
Speaker 9: some degree anyway. Could you talk about what you're seeing over the past pretty short term, like one to two weeks?
Pretty short term like one to two weeks.
Speaker 9: What kind of, are you seeing kind of more of a gradual improvement or do you see a step change improvement as unlocal on cases have been falling?
What kind of are you seeing.
More of a gradual improvement or are you see a step change improvement as well.
Current cases has been falling.
Speaker 9: in the US and some of these travelers' restrictions are being lifted in Europe as well.
In the U S and some of these travel restrictions are being lifted in Europe as well.
Yes, thanks, Kevin.
So first of all yes, it's more gradual but then.
Speaker 3: So first of all, yes, it's more gradual, but then obviously it's a bit different by country as well.
Obviously.
It's a bit different by country as well so let me give you an example in Europe .
Speaker 3: Let me give you an example in Europe . I mentioned that
I mentioned that.
Speaker 3: Denmark and Norway announced the lift off restrictions and there we have seen a clear increase in traffic since then. So there was.
Denmark and Norway.
Announced.
The lift off restrictions and that we have seen a clear increase in traffic. Since then so that was.
Speaker 3: different to other countries. Also in the UK last week, traffic volumes were highest than the third quarter last year. That is also different to other countries where we have seen...
Different to other countries.
Also in the UK last week traffic volumes were the highest in the third quarter last year.
That is also.
<unk> to other countries, where we have seen.
Speaker 3: less of easing restrictions. I mean, the situation in Germany, for example, we are still dealing with a situation where schools are closing every now and then, there is some friction, and that obviously leads to uncertainty. And I believe less activity overall.
Less of.
Easing restrictions.
The situation in Germany for example.
We are still dealing with a situation where schools are closing every now and then.
There is some friction and that obviously leads to uncertainty and I believe less activity overall.
Speaker 3: But on a higher level, if I look across our regions, then we do see a greater increase in improvement week by week since the start of January . But not like a step change we have seen in April , for example, last year.
But on a on a higher level, if I look across our regions than we do see greater increase improvement week by week since the start of January .
Not like a step change we have seen in April for example last year.
Speaker 9: Okay, and that includes America or the US for the last comment. That includes the US and America, yes.
Okay.
And that includes Americas.
You asked for the last comment.
That includes the U S and Americas, yes.
Great. Thank you so much.
Sure. Thank you.
Thank you.
Speakers there are no further questions at this time.
Okay.
Right.
Okay, yes, so many thanks for taking the time to participate in today's earnings call and we appreciate your continued interest.
Speaker 2: Okay, yeah, so many thanks for taking the time to participate in today's earnings call and we appreciate your continued interest
We're looking forward to 2022 and the opportunities ahead of US we believe meta will be more important than ever important to our partners to fill the hotel rooms and important to travelers navigating an increasingly complex world.
Speaker 2: We're looking forward to 2022 and the opportunities ahead of us. We believe meta will be more important than ever, important to our partners to fill the hotel rooms, and important to travelers, navigating an increasingly complex world, searching for the best prices. Many thanks for your time, stay safe, and see you in Q2.
<unk> for the best prices.
Thanks for your time stay safe and see you in Q2.
That does conclude our conference for today. Thank you for participating you may all disconnect have a nice day.
Speaker 1: That that concludes our conference for today. Thank you for participating. You may all disconnect. Have a seat.
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Sure.
Yes.
Yes.
Yes.
Yes.
Yes.
Sure.
Okay.
Yes.
Okay.
Okay.
Okay.
Yes.
Okay.
Okay.
Sure.
Yes.
Okay.
Yes.
Okay.
Sure.
Thank you.
Okay.
Sure.
Yes.
Yes.
Yes.
Yes.
Sure.
Sure.
Sure.
Yes.
Yes.
[music].
Yeah.
Okay.
Okay.
Yes.
Okay.
Okay.
Right.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Okay.
Thanks.
Yes.
Yes.
Okay.
Yes.
[music].
Okay.
Okay.
[music].
Yes.
[music].
Hum.
Okay.
[music].
Yes.
Okay.
Okay.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
[music].
Yes.
[music].
Yes.
Okay.
Okay.
[music].
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Okay.
Yes.
[music].
Okay.
Okay.
[music].
Speaker 10: .
Yes.
Yes.
Yes.
Sure.
Okay.
[music].
Yes.
Okay.
Okay.
Okay.
[music].
Sure.
Yes.
Okay.
Okay.
Yes.
Okay.
[music].
Yes.
Yes.
Yes.
Yes.
[music].
Yes.