Booking Holdings Inc (BKNG) 2016 Q1 法說會逐字稿

Welcome to the Priceline Group's first-quarter 2016 conference call.

歡迎參加 Priceline 集團 2016 年第一季電話會議。

The Priceline Group would like to remind everyone that this call may contain forward-looking statements which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.

Priceline集團謹此提醒各位，本次電話會議可能包含前瞻性陳述，這些陳述是根據1995年《私人證券訴訟改革法案》的安全港條款作出的。這些前瞻性陳述並非對未來績效的保證，並且受到某些難以預測的風險、不確定性和假設的影響。

Therefore actual results may differ materially from those expressed, implied, or forecasted in any such forward-looking statements. Expressions of future goals or expectations of similar expressions reflecting something other than historical fact are intended to identify forward-looking statements.

因此，實際結果可能與任何此類前瞻性聲明中表達、暗示或預測的結果有重大差異。表達未來目標或類似預期，而非反映歷史事實的表述，旨在識別前瞻性陳述。

For a list of factors that could cause the Group's actual results to differ materially from those described in the forward-looking statements, please refer to the Safe Harbor Statements at the end of the Group's earnings press release, as well as the Group's most recent filings with the Securities and Exchange Commission.

有關可能導致集團實際業績與前瞻性聲明中所述業績存在重大差異的因素列表，請參閱集團盈利新聞稿末尾的“安全港聲明”，以及集團最近向美國證券交易委員會提交的文件。

Unless required by law, the Priceline Group undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. A copy of the Group's earnings press release, together with an accompanying financial and statistical supplement, is available in the For Investor's section of the Priceline Group's website, www.pricelinegroup.com.

除非法律另有規定，否則 Priceline 集團不承擔因新資訊、未來事件或其他原因而公開更新任何前瞻性聲明的義務。集團獲利新聞稿及其隨附的財務和統計補充資料可在 Priceline 集團網站 www.pricelinegroup.com 的「投資者」部分查閱。

And now I'd like to introduce the Priceline Group's speakers for this afternoon, Jeffrey Boyd and Daniel Finnegan. Go ahead, gentlemen.

現在，我謹向大家介紹今天下午 Priceline 集團的演講嘉賓，傑弗裡·博伊德和丹尼爾·芬尼根。請繼續，先生們。

Thank you very much, and welcome to the Priceline Group's second-quarter conference call. I am joined today by our Priceline Group's CFO, Dan Finnegan in our Norwalk office before the market opens this morning in New York.

非常感謝，歡迎參加Priceline集團第二季財報電話會議。今天早上紐約股市開盤前，我和 Priceline 集團的財務長 Dan Finnegan 在我們位於諾沃克的辦公室見面。

The Group performed well in the quarter and we made good progress executing against our key initiatives. The Group reported consolidated gross bookings for the second quarter of approximately $16.7 billion, up about 26% on a constant currency basis or about 21% year over year in US dollars. Gross profit was up 21% or about 27% on a constant currency basis, and adjusted EBITDA was also up 27% to $676 million. And finally, non-GAAP earnings per share were $10.54, up 30% versus the prior year, surpassing our guidance for the quarter.

本季集團業績良好，我們在執行關鍵措施方面取得了良好進展。集團公佈第二季合併總預訂金額約 167 億美元，以固定匯率計算成長約 26%，以美元計算年增約 21%。毛利成長了 21%，以固定匯率計算成長了約 27%，調整後的 EBITDA 也成長了 27%，達到 6.76 億美元。最後，非GAAP每股收益為10.54美元，比去年同期成長30%，超過了我們對該季度的預期。

GAAP earnings per share were $7.47, up 17% versus the prior year. Our US dollar denominated growth rates were again impacted by the strong dollar but less than we have experienced in previous quarters.

以美國通用會計準則計算，每股收益為 7.47 美元，比上年增長 17%。以美元計價的成長率再次受到強勢美元的影響，但比前幾季受到的影響要小。

Our customers booked accommodation reservations for 137 million room nights in the quarter, up 31% year over year reflecting acceleration for the second consecutive quarter. We are pleased with this consistent robust growth in reservations, which reflects continued solid execution in the market for global travel. Booking.com continues to not only grow its accommodation supply but also increase its penetration within its supply base.

本季度，我們的客戶預訂了 1.37 億間夜的住宿，年增 31%，這反映了連續第二季的成長動能。我們對預訂量的持續強勁成長感到滿意，這反映出我們在全球旅遊市場持續穩健的執行力。Booking.com不僅持續增加住宿供應，而且還在不斷提高其在供應群體中的滲透率。

Booking.com's platform now has approximately 900,000 hotels and other accommodations in over 220 countries and territories, up 31% over last year. This platform also includes 422,000 instantly bookable vacation rental properties, which grew 40% year over year. We believe this inventory of unique properties represents an important source of future growth for the business, particularly when we can offer it with the best dynamic booking experience and great customer service.

Booking.com 的平台目前在超過 220 個國家和地區擁有約 90 萬家酒店和其他住宿，比去年增長了 31%。該平台還包含 422,000 套可立即預訂的度假租賃房產，較去年同期成長 40%。我們相信，這些獨特的房源是公司未來發展的重要來源，尤其是在我們能夠提供最佳的動態預訂體驗和優質的客戶服務的情況下。

While our core business remains strong, Booking.com continues to invest in the future through innovation. For example, providing a rich customer experience for customers early in the travel planning process. Booking's new Passion Search is a unique search tool that helps our customers find and experience their true passions with rich content and an elegant interface.

儘管我們的核心業務依然強勁，Booking.com 仍將繼續透過創新投資未來。例如，在旅行規劃過程的早期階段，為客戶提供豐富的客戶體驗。Booking 全新的「熱情搜尋」是一款獨特的搜尋工具，它透過豐富的內容和優雅的介面，幫助我們的客戶發現並體驗他們真正的熱情所在。

We also remain focused and committed to helping our business customers with their unique travel needs. Booking.com for business had another successful quarter in extending its services from individual business travelers to small and medium-size businesses.

我們將繼續專注於幫助我們的企業客戶滿足他們獨特的差旅需求。Booking.com for business 又取得了一個成功季度，其服務範圍從個人商務旅客擴展到了中小企業。

We are seeing solid growth in business bookers, and Booking.com will continue to innovate and develop new tools to help these customers travel more easily and efficiently.

我們看到商務預訂用戶數量穩定成長，Booking.com 將繼續創新並開發新工具，以幫助這些客戶更輕鬆、更有效率地出行。

Priceline.com's results continue to be impacted by pressure on its opaque business, due to greater marketplace competition in hotel discounting. Substantial investment in technology and people are under way to drive improvements to product, user interface and experiment velocity, and a new brand campaign launched in the first quarter aims at a more broadly appealing message and brand promise.

由於飯店折扣市場競爭加劇，Priceline.com 的業務不透明，持續對其業績造成壓力。公司正在對技術和人才進行大量投資，以推動產品改進、用戶介面優化和實驗速度提升；第一季推出的新品牌宣傳活動旨在傳遞更具吸引力的訊息和品牌承諾。

Cost discipline contributed to a good bottom line quarter for Agoda. As they push their pace of experimentation and innovation, they are positioning the platform for continued expansion. As mobility remains critically important across all of Agoda's primary Asian markets, we are pleased to note that the share of mobile transactions on Agoda is among the highest of the Group's travel businesses.

成本控制為Agoda帶來了良好的季度獲利。隨著他們加快實驗和創新步伐，他們正在為平台的持續擴張做好準備。由於行動性在 Agoda 的所有主要亞洲市場仍然至關重要，我們很高興地註意到，Agoda 的行動交易份額在集團的旅遊業務中名列前茅。

Kayak finished the quarter posting solid growth in queries, revenue and profit. Like our other brands, the pace of experimentation and innovation remains fast. Development around core search processing and functionality, mobile enhancements and new products all advanced during the quarter. We remain convinced that Kayak's product breadth will continue to differentiate their services in the marketplace.

Kayak 本季在查詢量、收入和利潤方面均實現了穩健成長。與我們的其他品牌一樣，我們的實驗和創新步伐仍然很快。本季度，核心搜尋處理和功能、行動裝置增強功能以及新產品的開發均取得了進展。我們仍然堅信，Kayak豐富的產品線將繼續使其服務在市場上脫穎而出。

Turning to our rental car services, rental car days grew 11% year over year for the Group. The largest contributor of this total, Rentalcars.com, executed another solid quarter despite challenges in some of its largest markets. OpenTable had a good quarter in its core US business and continued adding restaurants to its cloud-based solution. OpenTable continues to make progress developing its technology platform for scaled international expansion and working with companies in the Group to test cross-promotion opportunities.

從租車服務來看，集團租車天數年增了 11%。作為總貢獻者中的最大企業，Rentalcars.com 儘管在一些最大的市場面臨挑戰，但仍實現了另一個穩健的季度業績。OpenTable 在美國核心業務方面取得了不錯的季度業績，並繼續在其雲端解決方案中添加餐廳。OpenTable 持續推動其技術平台的開發，以實現規模化的國際擴張，並與集團內的公司合作，測試交叉推廣機會。

In summary, the Group had a strong first quarter lead by its international hotel business. Bottom line results were aided by an early Easter and a shift of brand marketing expense from Q1 to Q2. The second quarter will be negatively affected by the seasonal Easter shift and by year-over-year increases in brand and performance-based marketing that represent important investments in building the business and our brands, but will pressure operating leverage in the quarter, as you can see from our guidance.

總而言之，集團第一季業績強勁，主要得益於其國際酒店業務的帶動。復活節提前到來以及品牌行銷費用從第一季轉移到第二季度，都對最終業績有所幫助。第二季將受到復活節季節性調整以及品牌和效果行銷同比增加的負面影響，這些投資代表著對業務和品牌建設的重要投入，但正如您從我們的業績指引中看到的那樣，這將對本季度的營運槓桿造成壓力。

We do not believe that the higher expenses associated with the launch of new brand campaigns in the second quarter necessarily represents the long term run rate for the business. Our outlook is also forecasting weakness in hotel average daily rates, which is representative of volatility in macro-market conditions.

我們認為，第二季推出新品牌推廣活動所帶來的較高支出並不一定代表該業務的長期運作速度。我們的預測也顯示飯店平均每日房價將走弱，這反映了宏觀市場狀況的波動性。

Finally while the circumstances of my return to the business as interim CEO are unfortunate, I'm looking forward to working with our talented-brand leadership, including Gillian Toms, who I congratulate on her promotion to CEO of Booking.com as we continue moving our business forward. We believe the business is well-positioned to build on its long record of solid financial performance. I would like to thank our employees around the world for their hard work and dedication.

最後，雖然我以臨時執行長的身份重返公司的情況令人遺憾，但我期待與我們才華橫溢的品牌領導團隊合作，包括祝賀 Gillian Toms 晉升為 Booking.com 的首席執行官，我們將繼續推動業務向前發展。我們相信，憑藉其長期以來穩健的財務業績，該公司已做好充分準備，再創佳績。我要感謝世界各地員工的辛勤工作和奉獻精神。

I will now turn the call over to Dan for the detailed financial review.

現在我將把電話交給丹，讓他進行詳細的財務審查。

Thank, Jeff. I'll discuss operating results and cash flows for the quarter and then provide guidance for the second quarter of 2016. All growth rates referenced in my comments are compared to the prior year comparable period, unless other wise indicated.

謝謝你，傑夫。我將討論本季的經營業績和現金流，然後對 2016 年第二季進行展望。除非另有說明，否則我評論中提到的所有成長率均與去年同期進行比較。

Q1 was an exceptionally strong quarter for the Priceline Group, with acceleration in room night growth to 31% compared to 27% in Q4. We also had solid operating margin performance. Growth was strong across all demand channels and key geographic regions. Rental car days grew by 11% in Q1 consistent with the Q4 growth rate.

Priceline 集團第一季業績表現異常強勁，客房夜數成長率從第四季的 27% 加速至 31%。我們的營業利益率表現也十分穩健。所有需求管道和主要地理區域均實現了強勁成長。第一季租車天數成長了 11%，與第四季的成長率一致。

Average daily rates for accommodations, or ADRs, for Q1 were down slightly versus prior year on a constant currency basis for the consolidated group, which was below our forecast that ADRs would be up by about 1%. Foreign exchange rates again presented a headwind to our growth rates expressed in US dollars due to the strong dollar. Our Q1 gross bookings grew by 21% expressed in US dollars, but grew by about 26% on a constant currency basis compared to prior year.

第一季平均每日住宿價格（ADR）以固定匯率計算與去年同期相比略有下降，低於我們先前預測的 ADR 將上漲約 1%。由於美元走強，外匯匯率再次對我們以美元計價的經濟成長率構成了不利影響。以美元計，我們第一季的總預訂量成長了 21%，但以固定匯率計算，與去年同期相比成長了約 26%。

Gross profit for the quarter for the Priceline Group was $2 billion and grew by 21% in US dollars and by about 27% on a constant currency basis compared to the prior year. Gross profit growth was helped by Easter falling in Q1 this year versus Q2 last year. We estimate that the early Easter timing shifted about $40 million of gross profit and adjusted EBITDA into Q1 that would have been recognized in Q2 if Easter fell in Q2 as it did last year.

Priceline集團本季毛利為20億美元，以美元計算成長21%，以固定匯率計算成長約27%，與去年同期相比。由於今年復活節假期安排在了第一季度，而去年復活節假期安排在了第二季度，因此毛利增長得到了促進。我們估計，由於復活節提前到來，大約 4000 萬美元的毛利和調整後 EBITDA 被轉移到了第一季度，而如果復活節像去年一樣落在第二季度，這些利潤和 EBITDA 原本應該在第二季度確認。

The timing shift benefits our Q1 gross profit, operating profit, adjusted EBITDA, net income and operating margins, and will exert pressure on those metrics in Q2. In both cases compared to the prior year. Our gross profit take-rate, representing the amount we earn in commission or gross margin relative to the gross bookings generated through our websites, continues to be stable as it has been for quite some time now.

時間調整有助於我們第一季的毛利、營業利潤、調整後 EBITDA、淨收入和營業利潤率，但會在第二季對這些指標造成壓力。兩種情況均與前一年相比。我們的毛利率（即我們透過網站產生的總預訂量所賺取的佣金或毛利）一直保持穩定，這種情況已經持續了相當長一段時間。

Our international operations generated gross profit of $1.7 billion, which grew by 23% in US dollars and by about 31% on a constant currency basis compared to prior year. Gross profit for our US operations amounted to $296 million which represented 7% growth versus prior year.

我們的國際業務創造了 17 億美元的毛利，以美元計算增長了 23%，以固定匯率計算增長了約 31%。美國業務的毛利達到 2.96 億美元，比上年成長 7%。

Growth versus prior year Q1 is negatively impacted by a favorable travel transaction tax court ruling in the amount of $16.4 million included in Q1 2015 gross profit. Advertising and other revenue, which is mainly comprised of revenues for Kayak and OpenTable, grew by 21% in Q1 compared to the prior year.

與上年同期相比，第一季的成長受到有利的旅遊交易稅法院裁決的負面影響，該裁決金額為 1,640 萬美元，已計入 2015 年第一季的毛利。廣告和其他收入（主要包括 Kayak 和 OpenTable 的營收）在第一季比去年同期成長了 21%。

Operating income grew by 27%. Non-GAAP operating income grew by 28%, and non-GAAP operating margins exceeded our guidance and increased by 152 BPS compared to Q1 last year. Operating margins for Q1 2016 compared to the prior year Q1 were favorably impacted by the aforementioned Easter timing and phasing of brand advertising shifting into Q2. Solid ROIs for performance marketing were better than our guidance forecast.

營業收入成長了27%。非GAAP營業收入成長了28%，非GAAP營業利潤率超出預期，比去年第一季成長了152個基點。2016 年第一季的營業利潤率與去年第一季相比，受到上述復活節假期時間和品牌廣告投放階段調整至第二季的有利影響。效果行銷的實際投資報酬率優於我們先前的預測。

As highlighted in more detail in our soon to be filed 10-Q, in Q1 we changed from presenting online and offline advertising to performance advertising and brand advertising. As a result, brand advertising done in online channels such as YouTube and Facebook and display advertising, is now combined with offline advertising and presented as brand advertising.

正如我們在即將提交的 10-Q 文件中更詳細地闡述的那樣，在第一季度，我們從展示線上和線下廣告轉變為展示效果廣告和品牌廣告。因此，在 YouTube 和 Facebook 等線上管道進行的品牌廣告和展示廣告，現在與線下廣告相結合，並作為品牌廣告呈現。

We think the new presentation is helpful to investors as it distinguishes between performance marketing that is typically managed on an ROI basis and brand advertising, which is typically managed to a planned level of spend.

我們認為新的演示方式對投資者很有幫助，因為它區分了通常按投資回報率管理的效果行銷和通常按計劃支出水平管理的品牌廣告。

Non-advertising operating expenses were also favorable to our forecast and generated margin leverage compared to prior year, in part due to the gross profit benefit of earlier Easter this year. Adjusted EBITDA for Q1 amounted to $676 million, which exceeded the top end of our guidance range of $620 million and grew by 27% versus prior year. Net income increased by 12% and fully diluted EPS by 17%.

非廣告營運費用也符合我們的預測，並且與前一年相比產生了利潤率槓桿效應，部分原因是今年復活節提前帶來了毛利收益。第一季調整後 EBITDA 為 6.76 億美元，超過了我們先前 6.2 億美元的預期上限，比去年同期成長了 27%。淨利成長12%，完全稀釋後每股收益成長17%。

Non-GAAP net income increased by 24% and non-GAAP EPS grew by 30%, including increased interest expense from our 2015 bond offerings and the beneficial impact of lower share count from stock repurchases. GAAP net income in Q1 includes a non-cash charge in the amount of $50.4 million related to an other-than-temporary impairment in the value of our cost method investment in Hotel Irvano, based on the performance of the business which has been impacted by the deteriorating economic and political situation in Brazil.

非GAAP淨利成長24%，非GAAP每股盈餘成長30%，其中包括2015年債券發行帶來的利息支出增加以及股票回購導致股份數量減少的有利影響。第一季 GAAP 淨收入包含 5,040 萬美元的非現金支出，該支出與我們在伊爾瓦諾酒店的成本法投資價值的非暫時性減損有關，因為該業務的業績受到巴西經濟和政治形勢惡化的影響。

We excluded the impairment charge from adjusted EBITDA, non-GAAP net income, and non-GAAP EPS because it's not driven by core operating results and renders comparison with prior periods less meaningful. In terms of cash flow, we generated 344 million of cash from operations during first-quarter 2016, which is about 65% above last year.

我們從調整後的 EBITDA、非 GAAP 淨利潤和非 GAAP 每股收益中剔除了減損費用，因為它並非由核心經營績效驅動，而且會使與前期進行比較的意義降低。就現金流而言，我們在 2016 年第一季透過經營活動產生了 3.44 億現金，比去年同期成長了約 65%。

We used our cash during the quarter to repurchase 202,000 shares of our common stock for $259 million. CapEx amounted to $53 million. Our cash and investments amounted to about $11 billion at March 31, 2016 with about $700 million of that balance in the US. Now for Q2 guidance.

本季度，我們利用現金回購了 202,000 股普通股，耗資 2.59 億美元。資本支出總額為 5,300 萬美元。截至 2016 年 3 月 31 日，我們的現金和投資總額約為 110 億美元，其中約 7 億美元在美國。接下來是第二季業績指引。

Gross bookings have continued to grow strongly across all channels and key geographic regions thus far in Q2, but growth has decelerated compared to Q1. Our guidance assumes that our growth rates will decelerate further as we progress through the quarter, mainly due to the size of our business and consistent with long-term trends.

第二季至今，所有通路和主要地理區域的總預訂量持續保持強勁成長，但與第一季相比，成長速度有所放緩。我們的業績預期是，隨著本季的推進，我們的成長率將進一步放緩，這主要是由於我們業務的規模，並且與長期趨勢一致。

In addition we believe that the Euro Cup and earlier timing this year for Ramadan, will negatively impact our year-over-year growth rate in June. Our Q2 forecast is based upon recent foreign exchange rates and assumes that our growth rates in US dollars will not be significantly impacted by foreign exchange rate fluctuations.

此外，我們認為歐洲盃和今年齋戒月的提前到來，將對我們6月份的年成長率產生負面影響。我們第二季的預測是基於近期的外匯匯率，並假設以美元計價的成長率不會受到外匯匯率波動的顯著影響。

This is the first quarter in quite a while where FX is not expected to be a headwind. For Q2 guidance we are forecasting booked-room nights to grow by 15% to 22% and total gross bookings to grow by 11% to 18% in US dollars and on a constant currency basis. Our Q2 forecast assumes that constant currency accommodation ADRs for the consolidated group will be down by about 1% compared to the prior-year period.

這是近段時間以來第一個外匯市場預計不會構成不利因素的季度。對於第二季業績指引，我們預測以美元計算和以固定匯率計算，預訂客房夜數將增長 15% 至 22%，總預訂額將增長 11% 至 18%。我們第二季的預測假設，以固定匯率計算，合併集團的 ADR 將比去年同期下降約 1%。

Our forecast for decreasing ADRs relates to the shifts in the geographic mix of our business, ADR weakness in markets experiencing soft demand due to traveler safety concerns, and the impact on demand of economic weakness in certain international markets. Not surprisingly these conditions have also resulted in elevated cancellation rates.

我們對平均房價下降的預測與我們業務的地域組成變化、由於旅客安全問題導致需求疲軟的市場平均房價走低以及某些國際市場經濟疲軟對需求的影響有關。不出所料，這些情況也導致了取消率上升。

We expect Q2 revenue to grow year over year by approximately 7% to 14%. We expect gross profit to grow by 9% to 16% in US dollars and on a constant currency basis. The difference between forecasted gross bookings and gross profit growth relates to the lag between the timing of reservation booking and travel. A meaningful portion of the bookings recorded in Q2 are expected to benefit our gross profit in Q3, when summer travel takes place.

我們預計第二季營收將年增約 7% 至 14%。我們預計毛利將以美元和固定匯率計算成長 9% 至 16%。預測的總預訂量與毛利成長之間的差異與預訂時間和旅行時間之間的延遲有關。預計第二季記錄的大部分預訂將在第三季（夏季旅遊旺季）為我們帶來毛利成長。

We expect about 575 BPS of deleverage and non-GAAP operating margins compared to prior year, expressed as non-GAAP operating income as a percentage of gross profit. Almost half of the margin pressure is due to the shift of Easter gross profit into Q1 and significantly increased brand advertising associated with the launch of new add campaigns.

我們預期與前一年相比，去槓桿化和非GAAP營業利潤率將達到約575個基點，以非GAAP營業收入佔毛利的百分比表示。近一半的利潤率壓力是由於復活節毛利轉移到第一季以及與新廣告宣傳活動推出相關的品牌廣告支出大幅增加所致。

Consistent with prior years, operating leverage is also pressured by investments in non-add OpEx for our accommodation reservation business to be ready for peak travel season and future growth. Although we occasionally experience periods of lumpiness in the growth of brand advertising and non-advertising OpEx investments, which can pressure margins as our guidance assumes for Q2, we expect over the longer term to have operating leverage in these two expense categories.

與往年一樣，為了迎接旅遊旺季和未來的成長，我們在住宿預訂業務方面進行了非新增營運支出投資，這也給營運槓桿帶來了壓力。儘管我們偶爾會遇到品牌廣告和非廣告營運支出投資成長的波動期，這可能會像我們對第二季的預期那樣對利潤率構成壓力，但我們預計從長遠來看，這兩個支出類別將具有營運槓桿效應。

Finally, margins were also impacted by our assumptions for performance advertising efficiency. Our performance advertising return on investment has been solid thus far in the quarter, but as usual our forecast assumes deterioration from current levels and provides us with flexibility in a dynamic market to follow our consistent approach of advertising our brands at reasonable ROIs. Our adjusted EBITDA is expected to range between $740 million and $795 million, which at the midpoint is down 5% versus prior year.

最後，我們對效果廣告效率的假設也對利潤率產生了影響。本季度迄今為止，我們的效果廣告投資回報率一直很穩健，但與往常一樣，我們的預測假設會從目前的水平下降，這讓我們在動態的市場中擁有靈活性，可以繼續採取我們一貫的做法，以合理的投資回報率推廣我們的品牌。我們調整後的 EBITDA 預計在 7.4 億美元至 7.95 億美元之間，以中間值計算，比上年下降 5%。

Our non-GAAP EPS forecast includes an estimated cash income tax rate of approximately 16%, comprised of international income taxes and alternative minimum tax and state income taxes in the US. We are targeting non-GAAP fully diluted EPS of approximately $11.60 to $12.50 per share, which at the midpoint is down 3% versus prior year.

我們的非GAAP每股盈餘預測包括約16%的預期現金所得稅率，其中包括國際所得稅、美國替代性最低稅和州所得稅。我們預期非GAAP完全稀釋後每股盈餘約為11.60美元至12.50美元，其中數值較上年下降3%。

Our non-GAAP EPS guidance assumes a fully diluted share count of 50.6 million shares, based upon yesterday's closing stock price and reflects the beneficial impact of the common stock repurchases we made in 2015 and Q1 2016. We forecast GAAP EPS between $9.35 and $10.25 per share for Q2. The difference between our GAAP and non-GAAP results is driven by non-GAAP adjustments that are detailed in our earnings release.

我們的非GAAP每股盈餘預期假設完全稀釋後的股份數量為5,060萬股，基於昨天的收盤股價，並反映了我們在2015年和2016年第一季進行的普通股回購的正面影響。我們預測第二季 GAAP 每股收益在 9.35 美元至 10.25 美元之間。我們的 GAAP 和非 GAAP 業績之間的差異是由非 GAAP 調整造成的，這些調整在我們的獲利報告中有詳細說明。

Consistent with past practice, we have hedge contracts in place to substantially shield our second quarter EBITDA net earnings from any further fluctuation in the euro and British pound versus the dollar between now and the end of the quarter. Our forecast does not assume any significant change in macroeconomic conditions in general or in the travel market in particular.

與以往的做法一致，我們已簽訂對沖合約，以大幅降低第二季 EBITDA 淨收益受到歐元和英鎊兌美元匯率從現在到本季末進一步波動的影響。我們的預測並未假設宏觀經濟狀況（包括旅遊市場）會發生任何重大變化。

We will now take your questions.

現在開始回答各位的問題。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Our first question is from Tom White with Macquarie. You may begin.

我們的第一個問題來自麥格理銀行的湯姆懷特。你可以開始了。

Great, thank you for taking my question. Just on the hotel room night guidance and the deceleration there, you talked about the soccer tournament and Ramadan. I'm just curious if the difference is in kind of the geographic seasonality of your business, maybe is increasingly playing a role here, given that some of your faster growing geographies like Asia have peak travel in kind of Q4 and Q1 versus the middle part of the year.

太好了，謝謝你回答我的問題。就酒店房間夜間指導和那裡的減速而言，你談到了足球錦標賽和齋月。我只是好奇，這種差異是否與貴公司業務的地域季節性有關，考慮到貴公司一些增長較快的地區（如亞洲）的旅遊高峰期在第四季度和第一季度，而不是年中，這種地域季節性可能正在發揮越來越重要的作用。

And then just secondly on the increased brand campaign spend, could you maybe just give a little bit of color, is that sort of increase in spend in kind of countries where you guys are already advertising? Is it rolling out the campaign to new markets and new languages? Any detail there, thank you.

其次，關於增加品牌推廣活動支出，您能否詳細說明一下，這種支出增加是否主要集中在您已經投放廣告的國家？是否正在將宣傳活動推廣到新市場和新語言？能提供更多細節嗎？謝謝。

So maybe I'll take the second question and Dan can handle the first. With respect to the increased brand spend, an important part of that is a new advertising campaign for Booking.com here in the United States. Booking's product has enjoyed good growth and consumer acceptance, and we're very, very happy to be increasing our investment in building its market position and supporting that growth. There's no brand new market that represents a significant portion of that increased spend.

所以也許我會回答第二個問題，丹可以回答第一個問題。關於增加品牌投入，其中重要的一部分是Booking.com在美國開展的新廣告宣傳活動。Booking 的產品發展動能良好，深受消費者歡迎，我們非常高興能夠加大投資，鞏固其市場地位，並支持其發展。目前還沒有出現一個全新的市場能夠佔據這部分新增支出的很大一部分。

And then as far as geographic mix goes, Tom, what I said in my prepared comments was for Q1 and Q2, we're happy with the growth we're seeing across all of our key geographic regions, and that's been the case for quite a while now. So we've got regions other than Europe growing faster than our consolidated growth rate typically. Europe growing a little bit slower but still posting really solid growth rates, so the shift in mix amongst regions has been pretty gradual.

至於地域組成方面，湯姆，我在準備好的評論中說過，對於第一季度和第二季度，我們對所有主要地理區域的增長感到滿意，這種情況已經持續了相當長一段時間。所以，除了歐洲以外，其他地區的成長速度通常都比我們整體的成長速度還要快。歐洲經濟成長速度稍慢，但仍保持著非常穩健的成長率，因此各地區之間的結構變化相當漸進。

The impact of Euro Cup has been -- we've seen that in the past as well, and typically what happens, it's the last two weeks of June, the first two weeks of July. So at the outset, when all the teams are still playing, people are paying attention to the tournament and not necessarily booking travel. As their teams get knocked out and the tournament wraps up, typically people will then book their Summer vacation. They're not going to forego their vacation, but it may impact the timing of when they book it.

歐洲盃的影響——我們過去也看到過——通常情況下，比賽會在六月的最後兩週和七月的前兩週舉行。所以在比賽初期，當所有球隊還在比賽的時候，人們都在關注比賽，而不一定會預訂行程。隨著各隊被淘汰，比賽結束，人們通常會開始計劃暑假旅行。他們不會放棄度假，但這可能會影響他們預訂度假的時間。

And in terms of Ramadan, we've seen impacts every year. We have a big business in the Middle East and the Asia Pacific region. It moves ten days earlier, and so this year, we have ten extra days in the month of June. Typically at the outset of Ramadan, we see a slowing in bookings as Muslims are observing Ramadan. And then at the end Ramadan, we see an uptick in travel, which is beneficial for our business, and that was in July last year and will be in July again this year.

就齋月而言，我們每年都能看到其影響。我們在中東和亞太地區擁有龐大的業務。它提前十天，所以今年六月多了十天。通常在齋月開始時，由於穆斯林要遵守齋月，我們會看到預訂量放緩。齋戒月結束時，我們看到旅行量增加，這對我們的業務有利，去年7月如此，今年7月也會如此。

Okay, thank you.

好的，謝謝。

You're welcome.

不客氣。

Thank you. Our next question is from Eric Sheridan with UBS.

謝謝。我們的下一個問題來自瑞銀集團的艾瑞克·謝裡丹。

Thanks for taking the questions, maybe just two. One on the measurement advertising side, the performance side.

謝謝你回答問題，可能有兩個問題。一方面是衡量廣告效果，一方面是效果廣告。

The stable ROI, curious just to understand what you're seeing in the marketplace from a competitive standpoint that it informs the decisions and the statements on ROI and performance-based advertising and how you think about that moving through the rest of the year.

穩定的投資回報率，只是好奇您從競爭角度看到的市場情況，這會影響您對投資回報率和效果廣告的決策和看法，以及您如何看待今年剩餘時間的發展。

And then second on the CEO search, maybe understanding a little bit of what you're aiming for in the CEO search, timing and sort of how we should think about that going forward. Thanks guys.

其次，關於CEO的遴選，或許需要了解您在CEO遴選方面的目標、時間安排以及我們應該如何看待這個問題。謝謝各位。

Okay, again maybe I'll answer the second question and then Dan can take the first. Our Board, as we said in our public disclosures, is commencing a search straightaway for a long term successor to me as interim CEO. We don't have a prediction as to how long that will take, but I think folks can use their common sense to come to some concept of what a search for a position like this could take in terms of time.

好吧，或許我可以先回答第二個問題，然後讓丹來回答第一個問題。正如我們在公開披露中所說，我們的董事會將立即開始尋找我的長期繼任者，擔任臨時執行長。我們無法預測這需要多長時間，但我認為大家可以運用常識來大致了解尋找這樣一個職位可能需要多長時間。

In terms of the type of person that we're looking for, obviously we need to have a person who has broad experience and a demonstrated track record of success in managing large global organizations where technology is a very important part of the business and where they've demonstrated their ability to deal with changing market conditions successfully.

就我們尋找的人才類型而言，顯然我們需要一位擁有豐富經驗，並在管理大型全球組織方面有成功記錄的人，在這些組織中，技術是業務的重要組成部分，並且他們已經證明自己有能力成功應對不斷變化的市場環境。

And on performance advertising, Eric, our approach is consistent with the way we've always handled it. So we're looking to bring traffic to the website at a reasonable return on investment. We had several years, I guess since the middle of 2012, where we've been under pressure with that metric, and now we've had a few quarters in a row where we've seen ROIs pretty solid without categorizing them as better or worse than prior year; pretty neutral, so much better than the trend we had seen before that.

至於效果廣告，艾瑞克，我們的做法與我們一直以來的處理方式是一致的。所以我們希望以合理的投資報酬率為網站帶來流量。從 2012 年年中開始，我們有好幾年都面臨著這個指標的壓力，但現在我們已經連續幾個季度看到投資回報率相當穩定，無法將其歸類為比上一年更好或更差；相當中性，比我們之前看到的趨勢好得多。

For going forward, I feel good about our ability to compete in these variable channels with the number of properties we've got available on our website, the breadth and depth of selection, the work that our marketing teams do to continuously innovate and become more sophisticated in the way we compete within these channels, and then the great work that our front-end teams do also to continuously improve conversion on our websites and mobile platforms. Those are all good competitive advantages as we compete in that marketplace.

展望未來，我對我們有能力在這些多變的管道中競爭感到樂觀，這得益於我們網站上提供的房源數量、選擇的廣度和深度，以及我們行銷團隊不斷創新和提升我們在這些管道中競爭方式的精湛技藝，還有我們前端團隊為不斷提高我們網站和行動平台的轉換率所做的出色工作。這些都是我們在這個市場競爭中很好的競爭優勢。

Thank you, our next question is from Mark Mahaney with RBC Capital Markets.

謝謝，我們的下一個問題來自加拿大皇家銀行資本市場的馬克‧馬哈尼。

Thanks, just one question on alternative accommodations. Could you talk about trends there? And you gave out data on the inventory you have there, but could you talk about the bookings trends you're seeing and your thoughts on integrating that over time, more and more into the core purchase path, if that's something that you want to do? Thank you.

謝謝，關於其他住宿安排我還有一個問題。能談談那邊的發展趨勢嗎？您已經公佈了您在那裡的庫存數據，但是您能否談談您看到的預訂趨勢，以及您是否考慮隨著時間的推移，將這些趨勢越來越多地整合到核心購買流程中？謝謝。

Thank you, Mark. So we gave statistics with respect to the increase in the number of properties, vacation properties. In terms of our inventory, those types of properties are growing faster than inventory overall, so the share of available properties is increasing. And I want everybody to keep in mind that the number of rentable rooms or units per property for these kinds of accommodations is usually a lot smaller than a typical hotel, and that's something that we've been pointing out now for years.

謝謝你，馬克。因此，我們提供了有關房產數量增加，特別是度假房產數量的統計數據。就我們的庫存而言，這類房產的成長速度比整體庫存成長速度更快，因此可用房產的比例正在增加。我希望大家記住，這類住宿場所每處房產可出租的房間或單元數量通常比一般酒店少得多，而這一點我們多年來一直在強調。

The growth rates that we're seeing with respect to these properties are attractive. They are definitely helping deliver the kind of 31% year-over-year room night growth that we saw in the first quarter, and as I said in my prepared remarks, we view this sector of the market as a very important source of growth for the Business going forward. And our aim here really with respect to not just vacation properties but other non-hotel accommodations is to build the inventory substantially, provide a dynamic booking experience that is superior to any other alternative in the marketplace for these kinds of accommodations, and a customer service and customer experience that is consistent with what we've been providing for customers for years and what's made us a leading player in the space.

這些房產的成長率很有吸引力。他們無疑幫助我們實現了第一季同比增長 31% 的客房夜數增長，正如我在事先準備好的發言稿中所說，我們認為這一市場領域是公司未來發展的重要增長來源。我們的目標不僅是度假房產，還包括其他非酒店住宿，那就是大幅增加庫存，提供比市場上任何其他同類住宿選擇都更優越的動態預訂體驗，以及與我們多年來為客戶提供的服務以及使我們成為該領域領先者的服務和客戶體驗保持一致。

So I think we couldn't be more enthusiastic about these types of accommodations, and we couldn't be more convinced that the product that we're building and the service that we're providing is better than anything else out there in the marketplace.

所以我覺得我們對這類住宿方式充滿熱情，也無比確信我們正在打造的產品和我們提供的服務比市場上任何其他產品和服務都要好。

Jeff, one quick follow-on. On the non-hotel accommodations, could you just comment on the economics to Priceline of a booking of a non-hotel accommodations versus a regular hotel accommodation?

傑夫，還有一個後續問題。關於非飯店住宿，您能否就 Priceline 而言，預訂非飯店住宿與預訂一般飯店住宿的經濟效益發表一下看法？

The take rates are in line with our overall take rate, Mark.

馬克，這些成交率與我們的整體成交率一致。

Thank you, Dan.

謝謝你，丹。

Thank you, our next question is from Douglas Anmuth with JPMorgan.

謝謝，我們的下一個問題來自摩根大通的道格拉斯·安穆斯。

Thanks for taking the question. I just wanted to follow-up on your comments about the deceleration into Q2. Could you just help us understand the timing a little better here as you were exiting Q1 and going into Q2, and the degree to which you think that's law of large numbers versus some of the other factors you mentioned, specifically into Q2 around security and macro concerns and other? Thanks.

感謝您回答這個問題。我只是想就您提到的第二季增速放緩的問題做個後續說明。您能否幫我們更能理解一下您在第一季結束、第二季開始之際的時間節點？您認為這在多大程度上是大數定律造成的，又在多大程度上是您提到的其他因素造成的，特別是第二季度在安全和宏觀經濟方面的擔憂等等？謝謝。

Hello, Doug. So the growth rate in Q1 at 31% was clearly not sustainable. If you look at the growth we posted for Q1 together with the midpoint that we've guided to for Q2, and kind of average them out, you'd come to about a 25% growth rate year-to-date. Which is the growth that we posted for all of 2015, so I feel pretty good if we can check the box of getting half way through this year with no deceleration versus last year.

你好，道格。因此，第一季 31% 的成長率顯然是不可持續的。如果將我們第一季公佈的成長數據與我們預測的第二季中點值進行比較，並取平均值，就會得出今年迄今約 25% 的成長率。這與我們 2015 年全年的成長幅度相同，所以如果我們能夠實現今年上半年成長速度與去年相比沒有放緩的目標，我會感到非常滿意。

When we were asked a lot of questions last quarter about why are you growing so much faster, what are you doing differently, did you figure something out, we said the good news was no, we think that we're just continuing to perform well and the market is healthy. I think that's also the case with what we're seeing now in Q2. We're continuing to perform well. From data that we can monitor, we think that our share in variable channels is stable, the share of business going to us direct is stable, so I think the growth for Q1 was not sustainable.

上個季度，我們被問到很多問題，例如為什麼你們成長得這麼快，你們做了什麼不同的事情，你們是不是找到了什麼訣竅，我們回答說，好消息是沒有，我們認為我們只是繼續保持良好的業績，而且市場也很健康。我認為第二季的情況也是如此。我們持續保持良好的業績。從我們能夠監測的數據來看，我們認為我們在可變通路的份額保持穩定，直接進入我們公司的業務份額也保持穩定，所以我認為第一季的成長是不可持續的。

The growth we've seen thus far in Q2 I categorized in my prepared remarks is I consider it to be strong growth, and as we typically do we assume that our growth will decelerate as we move through the quarter. We have a couple of external factors with Euro Cup and Ramadan that we're calling out for the month of June, which has caused us to build maybe a little bit more conservatism in, or I'll color that actually, it's just reflect the fact that we think that's going to negatively impact our growth for that month.

我在準備好的發言稿中將我們在第二季度迄今為止看到的成長歸類為強勁成長，而且正如我們通常的做法，我們假設隨著季度的推進，我們的成長速度將會放緩。六月，我們面臨歐洲盃和齋戒月這兩個外部因素，這導致我們不得不採取更保守的策略，或者更確切地說，這只是反映出我們認為這些因素會對我們當月的成長產生負面影響。

Okay. Thanks, Dan.

好的。謝謝你，丹。

You're welcome.

不客氣。

Thank you. Our next question is from Justin Post with Bank of America Merrill Lynch.

謝謝。下一個問題來自美國銀行美林證券的賈斯汀·波斯特。

Thank you. Couple questions. Jeff, welcome back, and why the increase in brand spend in Q2? And any other initiatives for the Company that you're doing this quarter since you've come back? And then, it sounds like in the prepared remarks you've had some higher cancellation rates and lower ADRs, so maybe some industry pressure? Talk a little bit about what you're seeing out there. Thank you.

謝謝。幾個問題。Jeff，歡迎回來。第二季品牌支出增加的原因是什麼？您回歸公司後，本季還有哪些其他為該公司開展的措施？而且，從你們準備好的演講稿來看，你們的取消率似乎更高，平均房價也更低，所以可能受到了一些行業壓力？簡單談談你看到的景象。謝謝。

Okay so, Justin, in terms of the increase in brand spend in Q2, I think typically in this business and more specifically in the United States, because of the way demand for travel ramps up, your brand advertising spend usually is heaviest in the first half going into the early part of the Third Quarter, and then it sort of tends to trend down. So I think the ramp up in spending for brand advertising, at least in this market, is consistent with demand trends and again, we have a very profitable hotel business that allows us to make these kinds of investments in marketing. And as you know, we have a very strong culture of metric-driven management, so you can expect us to look very carefully at the returns on the brand investments to make sure that it's paying off in terms of strengthening our brand and driving traffic to the website.

好的，賈斯汀，關於第二季度品牌支出的增長，我認為通常在這個行業，尤其是在美國，由於旅遊需求的增長，品牌廣告支出通常在上半年到第三季度初達到峰值，然後往往會呈下降趨勢。所以我認為，至少在這個市場，品牌廣告支出的增加與需求趨勢是一致的，而且，我們擁有非常盈利的酒店業務，這使我們能夠在行銷方面進行此類投資。如您所知，我們非常重視指標驅動的管理文化，因此您可以期待我們非常仔細地審視品牌投資的回報，以確保其在加強品牌和為網站帶來流量方面能夠取得成效。

With respect to the market conditions, I think that we all have seen over the last years since the financial crisis what has been essentially a very fragile economic recovery that's been characterized by periods of apparent strength followed by periods of apparent weakness, whether it's driven by headline risk associated with sovereign debt crisis or other political considerations and more recently oil prices.

就市場狀況而言，我認為自金融危機以來的幾年裡，我們都看到了經濟復甦本質上非常脆弱，其特點是表面上的強勁時期之後緊接著是表面上的疲軟時期，無論是主權債務危機相關的頭條風險，還是其他政治因素，以及最近的油價波動，都導致了這種狀況。

To me some of the weakness that we're seeing is essentially consistent with the fragility of the economic situation that we've experienced over the long term, but as Dan mentioned, we have seen in industry statistics, at a minimum a deceleration of increasing average daily rates for hotels in a lot of markets around the world. And in our case, what we've seen is on a constant currency basis, a reduction slight reduction in ADRs for the first time in a long time as well as Dan also mentioned, increases in cancellations in certain markets. And so we wanted to flag that for investors as something that's a component of our forward-looking guidance for top line growth.

在我看來，我們目前看到的一些疲軟跡象本質上與我們長期以來所經歷的經濟形勢的脆弱性是一致的，但正如丹提到的那樣，我們從行業統計數據中看到，至少在世界許多市場，酒店平均每日房價的增長速度已經放緩。就我們而言，我們看到的是，以固定匯率計算，平均每日房價 (ADR) 多年來首次出現小幅下降，正如丹也提到的那樣，某些市場的取消預訂量有所增加。因此，我們希望向投資者指出，這是我們對營收成長的前瞻性預期中的一個組成部分。

And just to add on one other point there, Justin. With the ADR decline, I've pointed out that mix is also impacting that, so we're seeing strong travel to Russia, and APAC strong as a destination. Those are typically at lower than our average ADRs. We're seeing some weakness in markets like France impacted by terrorism, which is a higher ADR market, so mix is also contributing to that trend in our financials.

賈斯汀，我還要補充一點。隨著平均房價的下降，我指出，客源結構也對此產生了影響，因此我們看到前往俄羅斯的旅行人數強勁，亞太地區作為旅遊目的地也表現強勁。這些價格通常低於我們的平均房價。我們看到一些市場表現疲軟，例如受恐怖主義影響的法國，而法國的 ADR 市場較高，因此資產組合也導致了我們財務報表中的趨勢。

Thank you.

謝謝。

You're welcome.

不客氣。

Thank you. Our next question is from Naved Khan with Cantor Fitzgerald.

謝謝。我們的下一個問題來自 Naved Khan 和 Cantor Fitzgerald。

Hello, thanks. Curious to know if you guys have seen any impact on your SEO traffic because of the changes that Google made to the search engine results pages this past quarter?

你好，謝謝。想了解一下，Google上個季度對搜尋引擎結果頁面所做的更改，是否對你們的SEO流量產生了任何影響？

You know, I think that our emphasis and the lion's share of our business really comes more from paid search than it does from organic search, in the travel space in particular. Kayak and OpenTable may get more business from organic channels, but in the OTA space in the Group, it's typically much more of a paid search channel than it is an SEO chain.

你知道，我認為，尤其是在旅遊領域，我們的重點和大部分業務實際上更多地來自付費搜索，而不是自然搜索。Kayak 和 OpenTable 可能從自然管道獲得更多業務，但在集團的 OTA 領域，付費搜尋管道通常比 SEO 管道更受重視。

Okay, and then any impact from TripAdvisor's instant book? You guys sort of started first bidding in that a few months ago. Anything to call out there in terms of trends or what you're seeing in the channel?

好的，那麼 TripAdvisor 的即時預約功能有影響嗎？你們大概幾個月前就開始參與競標了。就趨勢或通路發展而言，有什麼需要特別指出的嗎？

Hello, Naved. We didn't call anything out in the prepared remarks because there's really no change from what we said last quarter, so given the relative size of TripAdvisor to our business, we haven't seen any significant impact to our numbers.

你好，納維德。我們在準備好的發言稿中沒有特別提及此事，因為與我們上個季度所說的相比，實際上並沒有什麼變化，考慮到 TripAdvisor 在我們業務中的相對規模，我們沒有看到對我們的業績產生任何重大影響。

Thank you.

謝謝。

You're welcome.

不客氣。

Thank you. Our next question is from Ken Sena with Evercore.

謝謝。下一個問題來自 Evercore 的 Ken Sena。

Hello, just going back to the ADR question, you mentioned change in geographic mix, some safety concerns and also some macro weakness. But can you also attribute it to just growth overall in alternative accommodations, whether your own in terms of the strong room night growth or competitors like Airbnb?

您好，回到ADR的問題，您提到了地域構成的變化、一些安全問題以及一些宏觀的弱點。但您是否也可以將其歸因於其他住宿方式的整體增長，無論是您自己的住宿數量大幅增長，還是像 Airbnb 這樣的競爭對手的增長？

And then also when you're thinking about the alternative accommodations market, is there more you can say as far as how you're segmenting it in terms of whether it's managed by property managers or for rental by owner or other, just to kind of give us a sense of how you view the addressable market? Thank you.

另外，在考慮另類住宿市場時，您能否進一步說明一下您是如何細分這個市場的，例如是由物業經理管理、業主出租還是其他方式，以便讓我們了解您是如何看待潛在市場的？謝謝。

Ken, on the ADR side, no significant impact on our overall blended ADRs from our increasing share of vacation rentals, and it's still fairly early days in the vacation rental space and we've got teams of people at Booking.com that are continuing to innovate and grow that business.

Ken，就平均房價而言，我們度假租賃業務份額的增加並沒有對我們的整體綜合平均房價產生重大影響，而且度假租賃領域仍處於起步階段，Booking.com 的團隊正在不斷創新和發展這項業務。

Right now it's mostly through property managers, but we are going to continue to add properties there, and we're looking to make our tools easier for single property owners to also be able to participate, so we're going to continue to advance there but right now it's mostly property managers.

目前主要是透過物業經理，但我們將繼續增加物業數量，我們正在努力使我們的工具更容易被單一物業所有者使用，所以我們將繼續在這方面取得進展，但目前主要是透過物業經理。

Thank you very much.

非常感謝。

You're welcome.

不客氣。

Thank you. Our next question is from Lloyd Walmsley with Deutsche Bank.

謝謝。下一個問題來自德意志銀行的勞埃德‧沃姆斯利。

Thanks. As you guys kind of ramp up your brand advertising spend this quarter, I think you characterized YouTube and Facebook as part of that bucket. So wondering if those channels have a good measurable ROI, such that you can really scale up those spend and track the results or if kind of moving into that brand bucket suggests it's a less direct impact.

謝謝。鑑於你們本季加大了品牌廣告投入，我認為你們把 YouTube 和 Facebook 也歸入了這個範疇。所以我想知道這些管道是否具有良好的可衡量的投資回報率，以便真正擴大這些支出並追蹤結果，或者轉向品牌類別是否意味著其影響不那麼直接。

And then a second if I can. Jeff, you're coming back after two years of perhaps thinking about the space from a more strategic level, so wondering if you can just give us your views on what you think the biggest changes have been in the space in general and the position of Priceline over the last couple of years and your outlook on the space as a whole going forward. That would be great, thanks.

如果可以的話，再來一個。Jeff，你時隔兩年回歸，或許是從更具策略性的層面思考這個領域，所以我們想請你談談你認為這個領域總體上最大的變化是什麼，以及Priceline在過去幾年中的地位，還有你對這個領域未來整體的展望。那太好了，謝謝。

Okay, so Lloyd, thank you for those questions. In terms of online brand spend, that's something that has grown in brands around the Group in the last couple of years, and it does provide the opportunity for different ways of measuring effectiveness, and at least in our view in some cases, more effective ways to measure the effectiveness of your brand spend. So I'm actually very optimistic that moving of brand spend to those channels has the potential to help us drive better long term returns on investment on our brand spending.

好的，勞埃德，謝謝你的提問。就線上品牌支出而言，在過去幾年裡，集團旗下各品牌的線上品牌支出都在成長，這為衡量效果提供了不同的方法，至少在我們看來，在某些情況下，這些方法能更有效地衡量品牌支出的效果。因此，我非常樂觀地認為，將品牌支出轉移到這些管道有可能幫助我們提高品牌支出的長期投資報酬率。

But at this point in time, it's not being measured like performance-based advertising where you're looking at the same session unit economics divided by cost per click kind of thing. It's just not those kind of measurements, so I don't want to represent that we are or ultimately we'll be looking at it the same way, but I think it's a -- it bodes well for our ability to better manage our brand spending over time.

但就目前而言，它的衡量方式與基於效果的廣告不同，後者是透過計算會話單位經濟效益除以每次點擊成本等方式來衡量的。這不是那種衡量標準，所以我不想表示我們現在或最終會以同樣的方式看待這個問題，但我認為這——這預示著我們有能力隨著時間的推移更好地管理我們的品牌支出。

With respect to from a higher level, the changes that we're seeing in the space, I think that I continue to be very impressed by the size and the scope of the opportunity that the Priceline Group and others in our space have in front of us. Year after year, good execution is rewarded when demand goes to new distribution channels, when you look at the importance of two businesses that you just mentioned in terms of sources of demand, YouTube and Facebook and others, it just, it's an opportunity for companies that can execute quickly and well to diversify and build on their demand.

從更高的層面來看，我們看到這個領域正在發生的變化，我認為 Priceline 集團和我們這個領域的其他公司所面臨的機會的規模和範圍仍然讓我印象深刻。年復一年，當需求轉向新的通路時，良好的執行力就會得到回報。看看你剛才提到的兩家企業（YouTube 和 Facebook 等）在需求來源方面的重要性，這對於那些能夠快速有效地執行的公司來說，就是一個多元化並建立需求的機會。

I also continue to be impressed by how attractive the global nature of the business is and the scale that we've developed, and in particular Booking.com has developed that just gives us an opportunity in markets around the world to build really big businesses, despite the turmoil that characterizes not only the world economy but the political situation around the world. And one thing that has impressed me about this business since I started running it as Chief Operating Officer of Priceline.com in late 2000, is the resiliency of our businesses in the face of some of these challenge. Which is not to say that we don't see the impact of terrorism or financial crisis. We absolutely see it.

我也一直對這項業務的全球性以及我們所取得的規模印象深刻，尤其是 Booking.com 的發展，這讓我們有機會在全球各地的市場建立真正的大型企業，儘管世界經濟和世界各地的政治局勢都動盪不安。自從 2000 年底我開始擔任 Priceline.com 的營運長以來，這個行業最讓我印象深刻的一點就是，面對這些挑戰，我們的業務展現出了強大的韌性。但這並不意味著我們沒有看到恐怖主義或金融危機的影響。我們完全看到了。

The economic cycles do affect our business, but time after time after time, they recover quickly and they build because of the very substantial tailwinds that we have benefiting us in terms of movement of this activity from offline channels to online channels. The growth of economic activity and middle class spending in emerging markets around the world, and finally the ability of our talented teams around the world to improve the edge we have in trying to drive demand in these channels. I hope that's responsive to your question.

經濟週期確實會影響我們的業務，但一次又一次，它們都會迅速復甦並發展壯大，因為我們擁有非常強大的順風，這些順風使我們從線下渠道轉移到線上管道。全球新興市場經濟活動和中產階級消費的成長，以及我們遍布全球的優秀團隊不斷提升我們在推動這些通路需求方面的優勢的能力，最終都促成了這一結果。希望我的回答能解答你的問題。

Yes, very helpful, thank you.

是的，很有幫助，謝謝。

Thank you. Our next question is from Mike Olson with Piper Jaffray.

謝謝。我們的下一個問題來自Piper Jaffray公司的Mike Olson。

Hello, good morning. So you're giving some fairly specific reasons for Q2 bookings growth being a bit below expectations with Easter and Ramadan, and maybe some macro issues impacting ADRs, so just I want to make sure that outside of those you're not seeing any changes in competitive dynamics like alternative accommodations growth, hotel direct potentially getting more aggressive, meta search gaining a higher share of direct traffic or other OTAs getting share or any other factors that are impacting your bookings. In other words, is it fair to say that the more cautious booking outlook is entirely market or timing based versus competitive issues? Thanks.

你好早安。所以您給了第二季預訂成長略低於預期的具體原因，包括復活節和齋戒月，以及可能影響平均房價的一些宏觀問題。因此，我想確認一下，除了這些原因之外，您是否看到競爭格局發生任何變化，例如替代住宿的增長、酒店直銷可能變得更加激進、元搜索獲得更高的直接流量份額或其他在線旅行社獲得份額，或者任何其他影響您預訂的因素。換句話說，謹慎的預訂前景是否完全是基於市場或時機而非競爭因素？謝謝。

I don't think that the deceleration that we're pointing to here has really anything to do with competitive factors in the marketplace. We obviously have a number of brands that are out there, and I think it's fair to say that not each one of them has the exact same competitive strength and positioning, but as we look at the share of the business we're getting from major distribution channels, we feel very comfortable that we're holding or gaining share.

我認為我們在這裡提到的成長放緩與市場競爭因素並沒有什麼關係。我們旗下顯然有很多品牌，我認為公平地說，每個品牌的競爭實力和市場定位並不完全相同，但從我們從主要分銷渠道獲得的業務份額來看，我們非常有信心，我們正在保持或擴大市場份額。

When we look at what's happening in alternative accommodations, and particularly the growth that Airbnb is advertising in the marketplace, I personally think that represents an opportunity for us because we are in a position to build our business in that space and to drive very substantial demand to those properties to convert them with an experience that's great for the customer and profitable for us. So I view that as a net substantial positive in terms of marketplace conditions for the Group.

當我們審視另類住宿領域正在發生的事情，特別是 Airbnb 在市場上宣傳的成長時，我個人認為這對我們來說是一個機會，因為我們有能力在這個領域建立我們的業務，並為這些房產帶來巨大的需求，從而通過為客戶提供優質體驗並為我們帶來利潤來轉化它們。因此，我認為這對集團而言，在市場狀況方面是一個實質的利多因素。

Thank you.

謝謝。

Thank you. Our next question is from Brian Nowak with Morgan Stanley.

謝謝。下一個問題來自摩根士丹利的布萊恩·諾瓦克。

Thanks for taking my questions. I have two. Just the first one, going back to the branded campaign and then the US around Booking.com. I guess I'm curious to hear about learnings you have on US and Booking.com in the past couple of years, what you think has worked and what has been more challenging? And what drives the decision to kind of further increase branded add spend to grow rather than use your paid search expertise to kind of continue taking share?

謝謝您回答我的問題。我有兩個。就第一個例子，回到品牌推廣活動，然後是Booking.com在美國的業務。我很想了解您在過去幾年對美國市場和 Booking.com 的一些經驗和心得，您認為哪些方面做得好，哪些方面更具挑戰性？是什麼促使企業決定進一步增加品牌廣告支出以實現成長，而不是利用付費搜尋的專業知識繼續擴大市場份額？

And then secondly, just an update on OpenTable, kind of how we can think about an OpenTable rollout in Europe, or next big milestones to look for this year. Thanks.

其次，簡單介紹一下 OpenTable 的最新進展，我們可以考慮在歐洲推廣 OpenTable，或是今年值得關注的下一個重大里程碑。謝謝。

Okay, thank you. With respect to branding and branding spend in the United States, I would start off by saying that we are very pleased with the progress that Booking.com has made in building its business and in building its brand in the United States.

好的，謝謝。關於Booking.com在美國的品牌建立和品牌投入，首先我想說，我們對Booking.com在美國的業務發展和品牌建立方面的進展感到非常滿意。

From time to time we've given some insight into what our overall growth rate is in the United States, and we're not providing that color today, but I will say that we are pleased with the absolute and relative rates of growth of the Booking.com, its business here in United States. We're very pleased with the results of the original brand launch on television of Booking.com in the United States and saw a demonstrable impact in terms of not just awareness but also the Business and ultimately the total cost that we experienced to drive customers as a whole were attractive to us.

我們曾不時透露我們在美國的整體成長率，今天我們不打算透露這方面的信息，但我可以說，我們對 Booking.com 在美國的業務的絕對增長率和相對增長率都感到滿意。我們對 Booking.com 在美國電視上的首次品牌推廣活動的結果非常滿意，不僅在知名度方面，而且在業務方面都產生了顯著的影響，最終我們為吸引客戶而付出的總成本也對我們很有吸引力。

As to why brand spending versus performance-based marketing, in the United States, it's a different market than international markets. First of all, our competition has very substantial share of voice on television, and if you don't participate you are conceding awareness and ultimately demand to your competition. And when you think about the size of the US market, in terms of population and the travel market, and the fact that it's a homogeneous market that you can advertise to with one campaign across the country, it really makes sense to have brand advertising here, and I think that strategy is spot on. And as we said in our prepared remarks, having a push associated with a new campaign is not something that's going to happen every quarter of every year, but we think it's a solid and sound strategy to continue to build awareness for our brand which today research is available everywhere under indexes in terms of awareness with other major travel brands in the space.

至於為什麼美國市場採用品牌支出而非效果行銷，這是因為美國市場與國際市場不同。首先，我們的競爭對手在電視上擁有相當大的話語權，如果你不參與，你就等於把知名度和最終的需求拱手讓給了你的競爭對手。當你考慮到美國市場的規模，無論是人口還是旅遊市場，以及這是一個同質化的市場，你可以透過一次全國範圍的廣告活動進行宣傳，那麼在這裡進行品牌廣告宣傳就非常有意義了，我認為這個策略非常正確。正如我們在準備好的演講稿中所說，推出新的推廣活動並不是每年每季都會發生的事情，但我們認為這是一個穩健合理的策略，可以繼續提高我們品牌的知名度。如今，在各種指數中，我們與其他主要旅遊品牌在知名度方面的對比研究隨處可見。

In terms of OpenTable and their plans to expand internationally, I think I said in my prepared remarks that there's a technology job to do in terms of revisions to their tech platform that make international expansion easy versus having to build a new platform in every different country, and that work is under way. And I think once it's completed, we'll be in a better position to essentially build on the international footprint that we have as a Group in helping OpenTable bring its product overseas.

關於 OpenTable 及其國際擴張計劃，我想我在事先準備好的演講稿中說過，他們需要在技術方面進行一些工作，例如修改其技術平台，使國際擴張更容易，而不是在每個不同的國家都建立一個新平台，而這項工作正在進行中。我認為一旦完成，我們將更有能力鞏固我們集團現有的國際影響力，幫助 OpenTable 將其產品推向海外。

I'll mention that they've done some work in Australia on a preliminary basis to try to understand what the potential impact of that is, and while it's very small and very early days, we think it's showing us that this strategy is the right strategy to help build out the brand.

我想提一下，他們已經在澳洲進行了一些初步工作，試圖了解這可能產生的影響。雖然規模很小，而且還處於非常早期的階段，但我們認為這表明，這項策略是幫助建立品牌的正確策略。

Great, thanks.

太好了，謝謝。

Thank you. Our next question is from Daniel Powell with Goldman Sachs.

謝謝。下一個問題來自高盛的丹尼爾·鮑威爾。

Hello, actually it's Heath Terry. Just wanted to get a sense with the EBITDA coming in about $50 million above the high end of your guidance for Q1. Is there any reason that wasn't invested back into driving booking growth even into Q2? Just curious if the returns that you were seeing on incremental spend were lower than your threshold, if there was something beyond that. And then I also realize it's extremely early, but we've now had Marriott, Hyatt, Hilton and Intercontinental all announce lower rates and other benefits for people that book direct. Do you foresee any impact to that even if it's just to your business with those chains?

你好，其實我是希思·特里。我只是想了解一下，第一季的 EBITDA 比你們先前預測的上限高出約 5000 萬美元。是否有任何原因導致這部分資金沒有被重新投入到推動第二季預訂量成長的工作中？我只是好奇，如果您發現增量支出帶來的回報低於您的預期閾值，是否存在超出該閾值的情況。然後我也意識到現在還為時過早，但萬豪、凱悅、希爾頓和洲際酒店集團都已經宣布，直接預訂的客人可享受更低的價格和其他優惠。您預見到這會對您與這些連鎖店的業務造成任何影響嗎？

Why don't I do the second one and Dan will do the first. With respect to the major hotel chains, a couple of things to keep in mind. First is, just say at the outset that our relationships with hotels in particular, and with the hotel chains, is an important part of who we are as a group that we have a tradition of supplier friendliness of bringing demand to our hotel partners at very low distribution costs. And in particular because of the international footprint of our business, we uniquely can provide access to demand around the world that even the most sophisticated chains cannot access themselves because they don't have the functionality, the language capabilities, or the distribution capabilities that we have on a global basis. So we're providing a little bit of a different, and at least in my judgment a more valuable service to hotel partners really than anybody else in this space.

不如我來做第二個，丹來做第一個。關於各大連鎖飯店，有幾點要注意。首先，我們想在一開始就說明，我們與酒店，特別是與連鎖酒店的關係，是我們集團的重要組成部分，我們一直以來都秉持著對供應商友好的傳統，以非常低的經銷成本為我們的酒店合作夥伴帶來需求。尤其因為我們業務的國際佈局，我們能夠以獨特的方式滿足世界各地的需求，而即使是最成熟的連鎖企業也無法做到這一點，因為他們不具備我們在全球範圍內擁有的功能、語言能力或分銷能力。因此，我們為酒店合作夥伴提供的服務略有不同，至少在我看來，比該領域的任何其他公司都更有價值的服務。

With respect to their efforts to drive traffic directly to their website, it's understandable. They have a strong desire to strengthen their brands and we understand that. On the other hand, we believe our customers are entitled to competitive pricing and the best availability that is out there for intermediaries because we provide the largest business to most of the hotels that we work with, so we try to maintain that balance.

考慮到他們試圖直接為網站引流，這是可以理解的。他們非常渴望加強自己的品牌，我們也理解這一點。另一方面，我們認為我們的客戶有權享受有競爭力的價格和最佳的中介服務，因為我們為大多數合作酒店帶來了最大的業務量，所以我們努力保持這種平衡。

I think people should keep in mind that the share of business that the Priceline Group does with the chains is relatively small. It's not like it used to be for Priceline when the chains for the US business were such a major part of the whole. It's really a much smaller part of the business, and ultimately for any hotel that wants to maximize the benefit they get from working with our brands, the most important things are going to be their pricing, their content, their availability, the competitiveness of the offer that we can show to our customers.

我認為人們應該記住，Priceline 集團與連鎖店的業務份額相對較小。對 Priceline 來說，情況已經和以前不一樣了，以前美國連鎖店是其整體業務的重要組成部分。這實際上只是業務中很小的一部分，最終，對於任何想要最大限度地從與我們品牌合作中獲得利益的酒店來說，最重要的還是他們的定價、他們的內容、他們的可用性以及我們能夠向客戶展示的優惠的競爭力。

And Heath, in terms of the EBITDA overperformance in Q1, we typically don't manage our brand spending that way so we don't say okay, we've overperformed therefore let's just churn a lot more money into advertising. Our performance advertising approach has been very consistent over many years now. It's consistent in Q1 and Q2 with what it has been in the past.

希思，就第一季 EBITDA 超預期表現而言，我們通常不會那樣管理我們的品牌支出，所以我們不會說，好吧，我們表現超預期，因此讓我們把更多的錢投入廣告。多年來，我們的效果廣告策略一直非常一致。第一季和第二季的情況與以往一致。

In terms of the brand advertising, the timing was more in Q2 than Q1 based upon when the campaigns were available to roll for Booking.com, and for Priceline.com it was a strategic decision to hold back a little bit on running the campaign until we were further along with the tech platform relaunch. So we're trying to spend what we think is the right amount to build our brands for the long term rather than overs pending because we had some overperformance in EBITDA in a quarter.

就品牌廣告而言，Booking.com 的推廣活動主要在第二季度進行，而不是第一季度，這取決於推廣活動何時可以啟動；而對於 Priceline.com，我們則做出了一個戰略決定，暫時推遲推廣活動，直到我們在技術平台重新推出方面取得更大進展。因此，我們努力投入我們認為合適的資金來打造我們的品牌，以實現長期發展，而不是因為某個季度 EBITDA 業績超預期就進行超支。

Thank you.

謝謝。

Thank you. Our next question is from Kevin Copelman with Cowen & Company.

謝謝。我們的下一個問題來自 Cowen & Company 的 Kevin Copelman。

Hello, thanks a lot. So you quantified the Easter impact for us of $40 million. Can you help us just think about how large the Euro Cup and Ramadan impacts are? And then also the brand campaign, if you could quantify that for us? Thanks.

您好，非常感謝。所以你們已經量化出復活節活動對我們造成的經濟影響為 4000 萬美元。您能幫我們想想歐洲盃和齋戒月的影響有多大嗎？還有品牌推廣活動，能否幫我們量化一下？謝謝。

Yes, so we aren't going to quantify the Ramadan and Euro Cup impact, but I will say growth is strong thus far out of the gate and we typically then assume that growth will decelerate as we move through the quarter, given the size of the business. There's no change in our approach there, and then we factored in what I would say overall for the quarter is a relatively small impact related to the two specific issues. And then the brand spending, what we said is that the deleverage in Q2, almost half of it is driven by accommodation of the Easter shift in timing and the increase in brand spend, so you can get a pretty good idea on what that amount is by doing the math.

是的，所以我們不會量化齋戒月和歐洲盃的影響，但我可以說，到目前為止，成長勢頭強勁，考慮到公司的規模，我們通常會假設隨著季度的推進，成長速度會放緩。我們的做法並沒有改變，然後我們考慮到了這兩個具體問題對本季整體的影響相對較小。至於品牌支出，我們說過，第二季的去槓桿化幾乎有一半是由於復活節假期時間調整和品牌支出增加所致，所以透過計算，你可以很好地了解這個數字。

Okay, thanks very much.

好的，非常感謝。

You're welcome.

不客氣。

Thank you. Our next question is from Stephen Ju with Credit Suisse.

謝謝。下一個問題來自瑞士信貸的 Stephen Ju。

Thanks, so is there anything you can share with us in terms of the overall impact you may be noticing from outbound travel activity and hopefully new demand out of the APAC region, especially China? And do you feel like those travelers are opting more for the larger hotel chain inventory as opposed to the more independent or even the alternative properties where you guys are stronger? Thanks.

謝謝，您能否與我們分享您觀察到的出境旅遊活動以及亞太地區（尤其是中國）新需求的整體影響？您是否覺得這些旅客更傾向於選擇大型連鎖飯店，而不是您實力較強的獨立飯店或另類飯店？謝謝。

You know, Stephen, I don't think we have any particular comment to make about the relative strength or weakness of outbound APAC. It's -- I think the performance of the business in APAC in general has been consistent with our expectations.

史蒂芬，你知道，我認為我們對亞太地區出境市場的相對強弱沒有特別的評論。我認為——總的來說，亞太地區的業務表現符合我們的預期。

The only regional comment I would make there is that inbound travel, international travel to China, has continued to be under pressure for primarily pollution reasons, honestly, more than anything else. And in terms of hotel quality, I don't have a comment to make to you there.

我唯一想就此發表的區域性評論是，入境旅遊，即前往中國的國際旅遊，持續面臨壓力，主要原因是污染問題，老實說，比其他任何原因都更甚。至於酒店品質方面，我沒有什麼可評論的。

Thank you. Our last question is from Brian Fitzgerald with Jefferies.

謝謝。最後一個問題來自傑富瑞集團的布萊恩·菲茨傑拉德。

Thanks, maybe a really quick question. Any differentiating trends you're seeing in terms of alternative inventory on a regional basis?

謝謝，我可能有個很小的問題。從區域角度來看，您在替代庫存方面觀察到任何差異化趨勢嗎？

No, nothing to call out, Brian. I mean it pretty much tracks the footprint of our business, so we are adding vacation rentals in all of our markets, principally in Europe, which is our biggest market. So nothing I would call out there that's noteworthy.

不，沒什麼好說的，布萊恩。我的意思是，它基本上反映了我們業務的佈局，所以我們正在所有市場增加度假租賃業務，主要是在歐洲，因為歐洲是我們最大的市場。所以沒什麼特別值得一提的。

Great, thanks, Jeff.

太好了，謝謝你，傑夫。

You're welcome.

不客氣。

Thank you. I would now like to turn the call back over to Management for any closing remarks.

謝謝。現在我想把電話轉回給管理階層，請他們作總結發言。

Thank you all for participating in the call.

感謝各位參與本次電話會議。

Ladies and Gentlemen, this concludes today's conference. Thank you for your participation, and have a wonderful day.

女士們、先生們，今天的會議到此結束。感謝您的參與，祝您有美好的一天。