Travel to Europe Boost Booking Holdings Revenue Growth in Q3
Reserve assets reports that third-quarter 2021 booked nights increased for the third consecutive quarter to 183 million, and revenue increased to $ 4.7 billion, slightly lower than third-quarter 2019 revenue of $ 5 billion of dollars.
Overnight stays in the third quarter were up from 157 million in the second quarter of this year, up almost 44% from the same period last year and – perhaps most noticeably – approaching levels pre-pandemic of the third quarter of 2019 of 223 million.
Total revenue more than doubled from the previous quarter, when it stood at $ 2.2 billion, and jumped 77% from the third quarter of 2020.
âWe are delighted to report another quarter of sequential improvement in overnight trends, primarily driven by better results in Europe. Our most seasonal third quarter revenue was $ 4.7 billion, more than double the revenue we saw in the second quarter of 2021, âsaid Glenn Fogel, CEO of Booking Holdings.
âWe are encouraged by the signs of recovery we saw in many parts of the world in the third quarter, and our teams are working hard to continue to strengthen our business position and execute our strategic priorities. “
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Fogel says international travel, particularly to Europe, led to the overall improvement in overnight trends between Q2 and Q3, but with cross-border travel still restricted in many regions during the quarter, the overnight figures international companies are still âconsiderably depressedâ compared to 2019, down 50% compared to the same quarters.
Of all nights booked, around 30% were alternative accommodation, up slightly from Q3 2019. However, Fogel says the company has seen a sequential increase in demand for hotel nights in Europe from second to third. trimester. Of the 28 million accommodation listings on Booking.com, around 2.4 million are for alternative accommodation, a relatively unchanged level from the second quarter.
Gross travel bookings – the total dollar value usually taxes and fees of all travel services booked, net of cancellations – stood at $ 23.7 billion, an increase of 77% from the corresponding quarter of the previous year, but still down 6% compared to the third quarter of 2019.
Adjusted EBITDA for the third quarter of 2021 was $ 2.1 billion, or 111% year-over-year and only 15% lower than the third quarter of 2019, making it the strongest quarter profitable since the third quarter of 2019.
Booking Holdings’ marketing spend nearly doubled in the third quarter of this year from a year earlier, from $ 731 million to $ 1.38 billion. Compared to the third quarter of 2019, this is an increase of 3%.
Fogel says the company saw a higher percentage of customers book direct than in the third quarter of 2019, even as the company “looked into performance marketing channels” during the period. About two-thirds of room nights were booked on mobile devices, and the majority of those came from the app, which topped 100 million monthly active users in the quarter.
In addition to focusing on improving the user experience on the app, which Fogel calls âthe center of our connected travel experience,â he says the company will continue to work to increase consumer awareness through advertising on social channels.
âWe have made progress in strengthening our digital marketing foundation, including on social channels, although our spending so far has been low. However, we are increasingly confident in the potential of these channels and, as we see positive results, we plan to increase our level of participation in them. “
The total number of corporate plane tickets in the third quarter increased 131% compared to the same quarter in 2019. Fogel says the growth is mainly due to the strength of Priceline, owned by Booking Holdings, but he says that ‘She was also helped by the growing flight offer from Booking.com, which is now live in 27 countries.
âWe continue to develop a robust flight platform,â he says.
âWe find that over 25% of Bookings flight bookings are entirely new customers. With these new customers, we are seeing an encouraging attachment rate for accommodation bookings. However, there is still work to be done to further optimize cross-selling opportunities.
âIt’s part of the overall vision to be able to attract new customers from different verticals, in different ways than we’ve done in the past, which is mostly paid performance marketing … and to be able to provide them with much more value.
Fogel also took note of the United Nations Climate Change Conference, known as COP26, which is currently taking place in Scotland, saying he “cannot overstate the importance for our industry to come together to work towards the objective of carbon neutrality by 2050 “. Fogel says Booking Holdings is working to make it easier for consumers to find sustainable accommodation options, working with supplier partners to help them improve sustainability at the property level, and the company will release its own “plan. climate transition âat the start of 2022.