Booking Holdings Inc (BKNG) 2016 Q2 法說會逐字稿

Welcome to The Priceline Group's second-quarter 2016 conference call. 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.

歡迎參加Priceline集團2016年第二季業績電話會議。 Priceline集團特此提醒各位，本次電話會議可能包含前瞻性陳述，這些陳述均符合1995年《私人證券訴訟改革法案》的安全港條款。這些前瞻性陳述並非對未來績效的保證，且受制於某些難以預測的風險、不確定性和假設。

Therefore, actual results may differ materially from those expressed, implied or forecasted in any such forward-looking statements. Expressions of future goals or expectations and 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明示、暗示或預測的結果有重大差異。對未來目標或預期以及其他反映歷史事實以外的類似表述旨在識別前瞻性聲明。

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 statement 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 Investors section of The Priceline Group's website, www.pricelinegroup.com.

除非法律另有規定，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。集團的獲利新聞稿及其隨附的財務和統計補充文件可在Priceline集團網站www.pricelinegroup.com的「投資者關係」欄位中查閱。

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

現在我謹介紹今天下午Priceline集團的演講嘉賓，傑弗裡·博伊德和丹尼爾·芬尼根。請開始，先生們。

Thank you very much, and welcome to The Priceline Group's second-quarter conference call. I'm joined this afternoon by our Priceline Group CFO, Dan Finnegan.

非常感謝，歡迎參加Priceline集團第二季財報電話會議。今天下午與我一同出席的還有Priceline集團財務長丹‧芬尼根。

I am pleased to report that the Group produced another solid quarter despite an often challenging market backdrop. Execution was consistent across the brands as we achieved several important milestones as a Group.

我很高興地報告，儘管市場環境充滿挑戰，集團依然取得了又一個穩健的季度業績。旗下各品牌執行力一致，集團也實現了多個重要里程碑。

The Group reported consolidated gross bookings for the second quarter of approximately $17.9 billion, up about 21% on a constant currency basis or about 19% year over year in US dollars. Gross profit was up 16% or about 18% on a constant currency basis and adjusted EBITDA increased 8% to $867 million. Earnings per share were $11.60, up 17% versus the prior year. And finally, non-GAAP earnings per share were $13.93, up 12% versus the prior year, surpassing our guidance for the quarter.

集團公佈第二季合併總預訂金額約179億美元，以固定匯率計算年增約21%，以美元計算年增約19%。毛利成長16%，以固定匯率計算年增約18%。調整後EBITDA成長8%至8.67億美元。每股收益為11.60美元，年增17%。最後，非GAAP每股盈餘為13.93美元，較去年同期成長12%，超出我們先前的季度預期。

Our customers booked combination reservations for 141 million room nights in the quarter, up 24% year over year. We are pleased with our reservation growth considering the competitive nature of our markets, as well as macro volatility in many travel markets experienced throughout the quarter. We believe the consistent growth we are reporting demonstrates the strength of our brands, the value of a diversified global footprint and solid execution by our brand management teams.

本季度，我們的客戶預訂了1.41億間夜的組合住宿，年增24%。考慮到市場的競爭激烈程度，以及本季許多旅遊市場所經歷的宏觀波動，我們對預訂量的成長感到滿意。我們相信，持續成長體現了我們品牌的實力、多元化全球佈局的價值以及品牌管理團隊的出色執行力。

Booking.com recorded another impressive quarter and we are excited to announce that we now have over 1 million properties on the Booking.com platform, which represents an increase of 30% over last year. The Booking team has nearly doubled the number of properties on its platform in just two years, a truly remarkable accomplishment that reflects the hard work and dedication that the Booking team employees on behalf of its customers and supply partners.

Booking.com 又迎來了一個令人矚目的季度，我們欣喜地宣布，Booking.com 平台上的房源數量已突破 100 萬，較去年同期成長 30%。 Booking 團隊在短短兩年內幾乎將平台上的房源數量翻了一番，這項卓越的成就充分體現了 Booking 團隊為客戶和供應商合作夥伴所付出的辛勤努力和奉獻精神。

The Booking.com platform includes approximately 493,000 instantly bookable vacation rental properties which grew 39% year over year. Our properties represent a combined total of approximately 23.7 million potentially bookable rooms. Of this total 16.3 million are within our traditional hotel partners and 7.3 million are bookable rooms in homes, apartments, villas and other categories of unique places to stay.

Booking.com平台擁有約49.3萬套可即時預訂的度假租賃房源，較去年同期成長39%。我們的房源總計約2,370萬間潛在可預訂客房。其中，1,630萬間客房屬於我們的傳統飯店合作夥伴，730萬間客房則分佈在民宿、公寓、別墅及其他特色住宿類型中。

We believe that Booking.com has one of the largest platforms for vacation rental and alternative accommodation properties and offers the most customer friendly booking experience in the market. Booking.com also reached another milestone in the quarter as it surpassed over 1 million reservations booked in a single day on its website, an impressive measure that demonstrates the meaningful scale of our business.

我們相信Booking.com擁有業界規模最大的度假租賃及其他住宿平台之一，並提供市場上最便利的預訂體驗。 Booking.com在本季也取得了另一項里程碑式的成就，其網站單日預訂量突破100萬筆，這一令人矚目的成績充分展現了我們業務的規模優勢。

Agoda produced another solid quarter on both the top and bottom lines as it continues to grow its global accommodation platform. The Asia-based Agoda team has built a world-class merchant supply platform capable of amassing and serving a wide variety of private discount deals that has proven to be a great asset for the Group. We are especially pleased to see group members leveraging the supply platform and availability for our customers.

Agoda 的營收和利潤均保持穩健成長，其全球住宿平台也持續擴張。總部位於亞洲的 Agoda 團隊打造了世界級的商家供應平台，能夠匯集並提供種類繁多的專屬折扣優惠，這已成為集團的寶貴資產。我們尤其欣喜地看到集團成員充分利用這個供應平台，為我們的客戶提供豐富的房源選擇。

Consistent with the first quarter, KAYAK exceeded our expectations posting strong growth in queries, revenue and profit. KAYAK continued its pace of innovation with the launch of several new products and enhancements centered on new verticals, planning and travel tools and conversational travel services such as KAYAK's Facebook messenger service, an exciting new way to search and book travel experiences.

與第一季一致，KAYAK 的業績超乎預期，查詢量、營收和利潤均強勁成長。 KAYAK 繼續保持創新步伐，推出多款新產品和功能增強，重點關注新的垂直領域、旅行規劃和工具以及對話式旅行服務，例如 KAYAK 的 Facebook Messenger 服務，這是一種令人興奮的全新旅行體驗搜尋和預訂方式。

Rental car days for the Group grew 8% in the quarter driven primary by Rentalcars.com. Rentalcars.com delivered a strong quarter and witnessed robust demand for its services across all of its major geographical regions. Rentalcars.com continues to make investments in expanding its global supply base as well as enhancements to its customer service organization.

本季集團租車天數成長8%，主要得益於Rentalcars.com的強勁表現。 Rentalcars.com本季業績表現突出，其服務在所有主要地區均需求旺盛。 Rentalcars.com將持續加大投資，拓展全球供應管道，並提升客戶服務水準。

Priceline.com made good progress on its efforts to reposition the business, including strengthening the management team, building more sustainable marketing programs and designing improved product offerings and customer service, all in an effort to position the business for a strong start in 2017.

Priceline.com 在重新定位業務方面取得了良好進展，包括加強管理團隊、建立更永續的行銷計劃以及設計改進的產品供應和客戶服務，所有這些都是為了使公司在 2017 年取得強勁開局。

OpenTable delivered good bottom-line performance in the quarter driven by a healthy balance of top-line growth and cost efficiencies. OpenTable is working on attractive growth opportunities, increasing the size and scope of its restaurant footprint into North America, using innovation to drive greater diner frequency and pursuing growth in international markets.

OpenTable本季獲利表現良好，這主要得益於營收成長和成本效益的平衡。 OpenTable正致力於尋找有吸引力的成長機會，包括擴大其在北美地區的餐廳規模和覆蓋範圍，透過創新提高顧客用餐頻率，以及積極拓展國際市場。

I am particularly excited about the pace with which our brand teams have built a business on mobile platforms. It is clear that progress in building share in the mobile channel is a critical component of delivering overall growth in the business. Product excellence, distribution and mobile marketing and monetization are all key components. You can see why this remains a top priority for all our brands.

我尤其欣喜地看到我們的品牌團隊在行動平台上的業務發展速度如此之快。顯然，提升行動通路的市場佔有率是實現業務整體成長的關鍵因素。卓越的產品、有效的分銷管道以及行動行銷和變現都是至關重要的組成部分。不難理解，為什麼這始終是我們所有品牌的首要任務。

In summary, the Group executed another solid quarter. Focus by our brand leadership on controlling spending contributed to better-than-expected margins, underlining that a core strength of our business is control of operating expenses which allows us to deliver attractive returns to our shareholders while investing in future growth.

總而言之，集團本季業績穩健。品牌領導階層對控制支出的重視，促成了超出預期的利潤率，這凸顯了我們業務的核心優勢在於有效控制營運費用，從而能夠在為股東創造可觀回報的同時，投資於未來的成長。

We have now turned our attention to the third quarter and our busy summer travel season. We feel good about our outlook for the third quarter albeit in a global travel market that is certain to remain volatile due to economic uncertainty and the scourge of terrorism. All of our employees are intently focused on delivering an exceptional customer experience during this busy season.

現在，我們已將注意力轉向第三季和繁忙的夏季旅遊旺季。儘管全球旅遊市場受經濟不確定性和恐怖主義威脅的影響，勢必持續波動，但我們對第三季的前景依然充滿信心。我們全體員工正全力以赴，確保在這個旺季為客戶提供卓越的體驗。

As always, I would like to thank our employees around the world for their hard work and dedication. I will now turn the call over to Dan for the detailed financial review.

一如既往，我要感謝全球員工的辛勤付出和敬業精神。現在我將把電話交給丹，由他來做詳細的財務回顧。

Thanks, Jeff. I will discuss operating results and cash flows for the quarter and then provide guidance for the third quarter of 2016. All growth rates referenced in my comments are compared to the prior year comparable period unless otherwise indicated.

謝謝傑夫。我將討論本季的經營業績和現金流，並對2016年第三季業績進行展望。除非另有說明，我發言中提及的所有成長率均與去年同期相比。

Q2 was a solid quarter for The Priceline Group with room night growth of 24% compared to 31% in Q1. Our growth did not decelerate to the extent assumed in our forecast resulting in room night and gross bookings performance that exceeded the top end of our guidance range. This momentum has carried over into Q3 as I will discuss in a moment when we get to guidance.

Priceline集團第二季業績穩健，客房夜數較去年同期成長24%，低於第一季的31%。我們的成長並未如預期般放緩，客房夜數和總預訂量均超過了預期範圍的上限。這一成長勢頭延續到了第三季度，稍後在談到業績展望時我會詳細闡述。

We are pleased with the performance broadly across our key geographic regions. While recent terrorist attacks impacted gross bookings and cancellations in the markets affected, they did not have a significant discernible impact on our overall growth.

我們對主要地理區域的整體業績感到滿意。雖然近期恐怖攻擊對受影響市場的預訂量和取消量造成了一定影響，但並未對我們的整體成長產生顯著影響。

Also, the Brexit vote caused a sizable devaluation in the British pound and creates uncertainty for the UK's economic outlook. But our exposure for the 12 months ended June 30, 2016 to UK destination gross profit and UK source market gross bookings was 10% or less as a share of our business.

此外，英國脫歐公投導致英鎊大幅貶值，並為英國經濟前景帶來不確定性。但截至2016年6月30日的12個月內，我們業務中英國目的地毛利和英國客源市場毛預訂量佔比均不超過10%。

Rental car days grew by 8% in Q2 compared to 11% in Q1. Average daily rates for accommodations, or ADRs, were down by less than 1% for Q2 versus prior year on a constant currency basis for the consolidated group, which was consistent with our forecast.

第二季租車天數增加了 8%，而第一季成長了 11%。以固定匯率計算，第二季集團住宿平均每日價格（ADR）較上年同期下降不到 1%，與我們的預測一致。

Foreign exchange rate impacts were slightly unfavorable to our results expressed in US dollars as compared to prior year and our forecast. Our Q2 gross bookings grew by 19% expressed in US dollars and grew by about 21% on a constant currency basis compared to the prior year. The difference between constant currency gross bookings growth and room night growth is due to a decline in airline ticket gross bookings, lower accommodation ADRs and relatively slower growth for rental car gross bookings.

與上年同期及預期相比，以美元計價的業績受匯率波動影響略為不利。第二季總預訂量以美元計價成長19%，以固定匯率計算成長約21%。固定匯率總預訂量成長與客房夜數成長之間的差異，是由於機票總預訂量下降、住宿平均房價降低以及租車總預訂量增長相對放緩所致。

Gross profit for the quarter for Priceline Group was $2.4 billion and grew by 16% in US dollars and by about 18% on a constant currency basis compared to the prior year.

Priceline集團本季毛利為24億美元，以美元計算成長16%，以固定匯率計算成長約18%，與去年同期相比。

As I mentioned when we last reported in May, we estimate that earlier 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. The timing shift negatively impacts our Q2 gross profit, operating profit, adjusted EBITDA, net income and operating margins compared to the prior year.

正如我們在五月份的報告中所述，我們估計，由於復活節時間提前，約有4000萬美元的毛利潤和調整後EBITDA被提前至第一季度確認，而如果復活節像去年一樣落在第二季度，這些利潤和EBITDA本應在第二季度確認。與上年同期相比，這個時間調整對我們第二季度的毛利、營業利潤、調整後EBITDA、淨利潤和營業利潤率均產生了負面影響。

Gross profit grew at a slower pace than gross bookings in Q2 primarily due to the impact of Easter timing and bookings recorded in Q2 that will benefit gross profit in subsequent quarters when travel occurs rather than due to any significant change in commission rates or gross margin relative to the gross bookings generated through our websites.

第二季毛利成長速度低於毛預訂量成長速度，這主要是由於復活節假期時間的影響，以及第二季記錄的預訂量將在隨後的幾個季度旅行真正到來時對毛利有利，而不是由於佣金率或毛利率相對於我們網站產生的毛預訂量發生了任何重大變化。

Our international operations generated gross profit of $2.1 billion, which grew by 17% in US dollars and by about 19% on a constant currency basis compared to prior year. Gross profit for our US operations amounted to $327 million which represented 8% growth versus prior year.

我們的國際業務毛利為21億美元，以美元計算年增17%，以固定匯率計算年增約19%。美國業務毛利為3.27億美元，較去年成長8%。

Advertising and other revenue, which is mainly comprised of non-intercompany revenues for KAYAK and OpenTable, grew by 22% in Q2 compared to the prior year. Operating income grew by 8%, non-GAAP operating income grew by 6% and non-GAAP operating margins exceeded our guidance, but decreased by 315 bps compared to Q2 last year.

第二季廣告及其他營收（主要包括KAYAK和OpenTable的非公司間營收）較去年同期成長22%。營業收入成長8%，非GAAP營業收入成長6%，非GAAP營業利潤率超出預期，但較去年同期下降315個基點。

Operating margins for Q2 2016 compared to prior year Q2 were pressured by the Easter timing I referred to earlier, performance advertising, and phasing of brand advertising shifting into Q2 from Q1. Performance advertising leverage was impacted by growth in paid marketing channels and growth in gross bookings that will partly benefit gross profit in subsequent quarters when travel takes place.

2016年第二季的營業利潤率與去年同期相比受到許多因素的影響，包括我之前提到的復活節假期時間、效果廣告以及品牌廣告投放週期從第一季轉移到第二季。付費行銷管道的成長和總預訂量的成長對效果廣告的槓桿作用產生了影響，而總預訂量的成長將在旅行恢復後，在後續季度部分提振毛利。

Performance advertising ROIs were stable for the quarter but were under year-over-year pressure towards the end of the quarter and thus far in Q3 as we have lapped the comp last year when ROI started to improve.

本季效果廣告投資報酬率保持穩定，但在本季末和第三季迄今為止，年比面臨壓力，因為我們已經超過了去年同期，而去年同期的投資報酬率開始改善。

Operating margin performance was better than our forecast due to better than forecasted ROIs for performance marketing, trimming of brand advertising by our brand teams and less non-ad OpEx spending than assumed partly due to facing shifting to Q3.

由於效果行銷的投資報酬率高於預期，品牌團隊削減了品牌廣告支出，以及非廣告營運支出低於預期（部分原因是由於要過渡到第三季），營業利潤率表現優於預期。

Adjusted EBITDA for Q2 amounted to $867 million which exceeded the top end of our guidance range of $795 million and grew by 8% versus prior year.

第二季調整後 EBITDA 為 8.67 億美元，超過了我們先前 7.95 億美元的預期上限，比去年同期成長了 8%。

Net income increased by 12% and fully diluted EPS grew by 17%. Non-GAAP net income increased by 8% and non-GAAP EPS grew by 12% including increased interest expense from our recent bond offerings and the beneficial impact of lower share count from stock repurchases. Net income also benefited from a lower effective tax rate in Q2 2016 due to the impact on deferred tax balances of a change in state tax laws.

淨利成長12%，完全攤薄後每股收益成長17%。非GAAP淨利成長8%，非GAAP每股盈餘成長12%，其中包括近期債券發行帶來的利息支出增加以及股票回購導致流通股數量減少的利多因素。此外，由於州稅法變更對遞延所得稅餘額的影響，2016年第二季實際稅率降低，也對淨利有所貢獻。

GAAP net income in Q2 includes a non-cash charge in the amount of $12.9 million related to an other than temporary impairment in the value of cost method investments mainly related to the write-off of our remaining investment in Hotel Urbano based on the performance and funding needs of the business, which has been impacted by the deteriorating economic and political situation in Brazil.

第二季 GAAP 淨收入包括 1,290 萬美元的非現金支出，該支出與成本法投資價值的非暫時性減損有關，主要原因是由於巴西經濟和政治形勢惡化，導致我們對 Hotel Urbano 的剩餘投資進行註銷，而該投資的減值是基於業務的業績和資金需求。

We excluded the impairment charge from adjusted EBITDA, non-GAAP net income and non-GAAP EPS because it is not driven by our core operating results and renders comparisons with prior periods less meaningful.

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，因為它並非由我們的核心經營績效驅動，而且會使與前期的比較變得意義不大。

In terms of cash flow, we generated $1 billion of cash from operations during second quarter 2016, which is about 38% above last year. We repurchased 236,000 shares of our common stock for $299 million during the quarter and we purchased an additional $69 million of our common stock after quarter close in July.

就現金流而言，我們在2016年第二季透過經營活動產生了10億美元的現金流，比去年同期成長約38%。本季我們回購了23.6萬股普通股，總額為2.99億美元；此外，我們在7月季結束後又回購了價值6,900萬美元的普通股。

CapEx for the quarter amounted to $60 million. Our cash and investments amounted to $12.3 billion at June 30, 2016 with about $1.6 billion of that balance in the US.

本季資本支出為 6000 萬美元。截至 2016 年 6 月 30 日，我們的現金和投資總額為 123 億美元，其中約 16 億美元在美國。

Now for Q3 guidance. Q3 is off to a solid start with gross bookings continuing to grow nicely across our key geographic regions. Our guidance assumes that our growth rates will decelerate as we progress through the quarter, mainly due to the size of our business and consistent with long-term trends.

現在來看第三季業績展望。第三季開局穩健，主要地區的總預訂量持續保持良好成長。我們的業績展望基於以下假設：隨著季度的推進，成長速度將會放緩，這主要是由於我們業務規模較大，也符合長期發展趨勢。

Our Q3 forecast is based upon recent foreign-exchange rates and assumes that our growth rates in US dollars will be slightly dampened by foreign exchange rate fluctuations. I highlight that the basket of foreign currencies in which we transact weakened on a weighted average basis by about 2% versus the US dollar since we reported our earnings last quarter and most analysts last updated their forecasts.

我們的第三季預測是基於近期的匯率，並假設以美元計價的成長率將因匯率波動而略有下降。需要指出的是，自從我們上季度發布財報以來，以及大多數分析師上次更新預測以來，我們交易的一籃子外幣兌美元的加權平均匯率已下跌約2%。

For Q3 guidance we are forecasting booked room nights to grow by 18% to 23% and total gross bookings to grow by 14% to 19% in US dollars and by 15% to 20% on a constant currency basis. Our Q3 forecast assumes that constant currency accommodation ADRs for the consolidated Group will be down by less than 1% compared to the prior year period.

第三季業績指引：我們預期預訂客房夜數將成長18%至23%（以美元計），總預訂額將成長14%至19%；以固定匯率計算，總預訂額將成長15%至20%。我們的第三季預測基於以下假設：集團合併後住宿平均房價（以固定匯率計算）將比上年同期下降不到1%。

We expect Q3 revenue to grow year-over-year by approximately 12% to 17%. We expect gross profit to grow by 15% to 20% in US dollars and by 16% to 21% on a constant currency basis. We expect about 260 bps of deleverage in non-GAAP operating margins compared to prior year expressed as non-GAAP operating income as a percentage of gross profit principally related to our assumptions for performance advertising.

我們預計第三季營收將年增約12%至17%。以美元計算，我們預期毛利將成長15%至20%；以固定匯率計算，則將成長16%至21%。我們預計，與上年同期相比，非GAAP營業利潤率（以非GAAP營業收入佔毛利的百分比表示）將下降約260個基點，這主要與我們對效果廣告的假設有關。

As I mentioned a moment ago, we have seen pressure on ROIs thus far in Q3 as we compared to periods with improved ROI performance last year. Our forecast assumes further ROI deterioration over the balance of the quarter to provide us with flexibility in a dynamic market to follow our consistent approach of generating gross bookings at reasonable ROIs.

正如我剛才提到的，與去年同期投資報酬率表現較好的時期相比，第三季迄今的投資報酬率一直承壓。我們預測，本季剩餘時間內投資回報率將進一步惡化，以便在瞬息萬變的市場中保持靈活性，繼續執行我們一貫的策略，即在合理的投資回報率下實現毛訂單量的增長。

Our adjusted EBITDA is expected to range between $1.73 billion and $1.83 billion which at the midpoint is up 11% versus prior year. We forecast GAAP EPS between $26.10 and $27.60 per share for Q3. The difference between our GAAP and non-GAAP results is driven by non-GAAP adjustments that are detailed in our earnings release.

我們預計第三季調整後 EBITDA 將在 17.3 億美元至 18.3 億美元之間，取中間值，較上年同期成長 11%。我們預測第三季 GAAP 每股盈餘將在 26.10 美元至 27.60 美元之間。 GAAP 與非 GAAP 業績之間的差異源自於非 GAAP 調整，詳情請參閱我們的獲利報告。

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 $28.30 to $29.80 per share, which at the midpoint is up about 15% versus prior year.

我們的非GAAP每股盈餘預測包含了約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。我們預計非GAAP完全稀釋後每股收益約為28.30美元至29.80美元，其中數值較上年增長約15%。

Our non-GAAP EPS guidance assumes a fully diluted share count of 50.3 million shares based upon yesterday's closing stock price and reflects the beneficial impact of the common stock repurchases we have made to date.

我們的非GAAP每股盈餘預期是基於昨天的收盤價計算的完全稀釋後股份數量為5030萬股，並反映了我們迄今為止進行的普通股回購的正面影響。

Consistent with past practice, we have hedge contracts in place to substantially shield our third-quarter EBITDA and net earnings from any further fluctuation in the euro, British pound and various other currencies 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.

與以往做法一致，我們已簽訂對沖合約，以大幅降低歐元、英鎊及其他貨幣兌美元匯率在第三季末之前的波動對我們的息稅折舊攤銷前利潤 (EBITDA) 和淨利潤的影響。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。

I would now like to outline some changes we will make in reporting non-GAAP financial metrics, which will be effective for guidance and reporting for the fourth quarter and going forward.

現在我想概述我們將對非GAAP財務指標的報告做出的一些改變，這些改變將對第四季度及以後的業績指引和報告產生影響。

First, our earnings releases and commentary in our earnings calls with respect to historical results will focus primarily on GAAP results.

首先，我們在盈利報告和盈利電話會議中對歷史業績的評論將主要集中在GAAP業績上。

Second, we will continue to present adjusted EBITDA and non-GAAP net income, but will no longer deduct stock-based compensation, which for us has ranged between 2% and 3% of gross profit for the last few years.

其次，我們將繼續列示調整後的 EBITDA 和非 GAAP 淨利潤，但不再扣除股票選擇權費用，過去幾年，我們的股票選擇權費用佔毛利的 2% 到 3%。

We will also discontinue adjusting for the impact of net operating loss carry forwards as that benefit now represents a smaller contribution to non-GAAP net income and will eventually sunset. We estimate that our non-GAAP tax rate for 2016 after we change to our new approach will be approximately 17%.

我們將停止調整淨營業虧損結轉的影響，因為此項收益對非GAAP淨利的貢獻已較小，且最終將不再適用。我們預計，採用新方法後，2016年的非GAAP稅率約為17%。

Apart from the items above, our non-GAAP reporting will be generally consistent with prior practice and we will provide information to assist investors in comparing our results from the fourth quarter on with prior periods on a consistent basis. We will now take your questions.

除上述事項外，我們的非GAAP財務報告將與以往做法基本一致，我們將提供相關信息，幫助投資者將第四季度及以後的業績與以往期間的業績進行一致比較。現在開始回答各位的問題。

(Operator Instructions). Mark Mahaney, RBC Capital Markets.

（操作說明）。馬克‧馬哈尼，加拿大皇家銀行資本市場。

Can I ask you to talk about two growth areas: one, the China outbound market, just an update there? And then on the kind of alternative accommodations market, you gave some numbers there for total number of room nights. Could you just talk about traction and what you are doing in terms of trying to include that in the purchase path, to what extent you are trying to do that and just a general update on end market? Thanks a lot.

請問您能否談談兩個成長領域：一是中國出境旅遊市場，能否簡單介紹一下這方面的最新情況？二是替代住宿市場，您之前提到總房晚數。能否談談該市場的發展情況，以及您在將替代住宿納入購買流程方面所做的努力，包括您在這方面的進展程度，以及終端市場的整體情況？非常感謝。

Thank you, Mark. The China outbound market continues to be a market that is large and growing and that we all view has great potential because of the demographic factors that are well-known affecting China.

謝謝你，馬克。中國出境旅遊市場仍然是一個規模龐大且不斷增長的市場，我們都認為它潛力巨大，這主要是由於眾所周知的中國人口結構因素所致。

We have a number of different ways to participate in it. We participate in it to our partnership with Ctrip where our international hotels are shown to their customers, and Booking.com and Agoda also participate directly in selling outbound to international travelers coming from China.

我們有多種參與方式。我們透過與攜程的合作參與其中，攜程會將我們的國際飯店展示給他們的客戶；Booking.com 和 Agoda 也直接參與，向來自中國的國際遊客銷售出境旅遊產品。

I know there has been a lot written about a slowdown in overall economic growth in China, but we still view it as a very, very attractive market that will have substantial macro headwinds -- excuse me, tailwinds, helping build both the middle-class and travel demand and we want to participate in it.

我知道關於中國整體經濟成長放緩的文章很多，但我們仍然認為中國是一個非常非常有吸引力的市場，它將面臨巨大的宏觀逆風——抱歉，是順風——這將有助於壯大中產階級和提升旅遊需求，我們希望參與其中。

With respect to alternative accommodations, as you can see by the numbers that we disclosed and sort of the ongoing property counts on Booking.com in particular, we have built a very large inventory of dynamically bookable non-hotel accommodations. And we view it as a growth opportunity for our brands and for Booking.com in particular.

關於替代住宿，正如您從我們披露的數據以及Booking.com上持續更新的房源數量中所看到的，我們已經建立了一個非常龐大的可動態預訂的非酒店住宿庫存。我們認為這對我們的品牌以及Booking.com本身來說都是一個成長機會。

And most importantly our customers have gotten used to having a world-class content and a great experience both in booking and at stay, and that is something that we are determined to deliver. With respect to alternative accommodations, we also have I think one of the best distribution networks; in other words, one of the best ways to market this properties of any player in the space and look forward to doing that.

最重要的是，我們的客戶已經習慣在預訂和入住過程中獲得世界一流的內容和卓越的體驗，而這正是我們決心繼續提供的。至於其他住宿選擇，我認為我們也擁有業內最佳的分銷網絡之一；換句話說，我們擁有業內最佳的房源推廣管道之一，我們期待繼續發揮這一優勢。

In terms of how those are presented on the website, that is something that is determined by technology and the experience we have with users on the website. There is always an opportunity to select those properties for customers who want to use the various filters that are available. So, there is a lot of different ways to get to them. But the most fundamental element of it is that we are trying to show the particular customer what they are most likely looking for and that drives the presentation.

至於這些房源在網站上的呈現方式，這取決於技術以及我們與使用者在網站上的互動體驗。我們始終為希望使用各種篩選條件的客戶提供選擇房源的機會。因此，有許多不同的途徑可以找到這些房源。但最根本的一點是，我們力求向特定客戶展示他們最有可能正在尋找的內容，而這正是我們呈現方式的驅動力。

Thank you, Jeff.

謝謝你，傑夫。

Justin Post, Bank of America Merrill Lynch.

賈斯汀·波斯特，美國銀行美林證券。

I would like to focus on the performance advertising. One of your competitors, Expedia, mentioned maybe a competitor benefited from some of their challenges. Has that helped at all in your third-quarter outlook?

我想重點談談效果廣告。你們的競爭對手 Expedia 提到，他們的一些挑戰可能會讓競爭對手受益。這是否對你們第三季的業績展望有所幫助？

And then on a bigger picture basis, guiding to margin deleverage picking up there, what is causing that? And how do you think about margins longer-term for the group? Thank you.

從更宏觀的角度來看，利潤率去槓桿化加劇的原因是什麼？您如何看待集團的長期利潤率前景？謝謝。

So, performance advertising we specifically called out in Q2 that one of the drivers of the pressure, in fact the principle driver as it relates to performance advertising, was growth in those channels outpacing growth overall in the business. So we did have some success there.

因此，我們在第二季特別指出，效果廣告面臨的壓力之一，實際上是主要壓力來源，是這些管道的成長速度超過了公司整體的成長速度。所以，我們在這方面取得了一些成功。

For Q3 that is part of the assumption again, but we are also seeing some pressure on ROI trends relative to prior year. And we think that is principally due to the fact that we are now lapping the period where ROIs started to improve year over year a year ago. And I'm sorry, what was your second question?

對於第三季度，這仍然是我們假設的一部分，但我們也看到投資回報率（ROI）趨勢相對於去年同期面臨一些壓力。我們認為這主要是因為我們現在已經過了投資報酬率開始逐年改善的時期。抱歉，您的第二個問題是什麼？

Just longer-term, it looks like you are going to have some marketing pressure maybe over the next year. How do think about long-term margins? Can you keep them stable or how are you thinking about that?

從長遠來看，未來一年你們可能會面臨一些行銷壓力。你們如何看待長期利潤率？你們能保持利潤率穩定嗎？或者你們對此有何打算？

Right. So, similar to what we said in the past in that regard, we feel -- if you break it into three pieces, brand advertising, although we have had deleverage pressure from that from time to time, for the long run we feel that we will be able to deliver operating leverage there.

沒錯。所以，就像我們過去在這方面所說的那樣，我們認為——如果把它分成三部分，品牌廣告，雖然我們不時會面臨這方面的去槓桿化壓力，但從長遠來看，我們認為我們能夠在這方面實現營運槓桿效應。

Similar story for non-advertising OpEx where the business has typically grown more quickly than those expenses have and we feel good about being able to control that for the future. So that leaves the performance advertising which is by far the biggest expense bucket.

非廣告營運支出的情況也類似，業務成長速度通常快於這些支出，我們有信心在未來能夠控制這部分支出。因此，剩下的就是效果廣告了，這無疑是最大的支出項目。

We have had several years now of pressure on that metric. Our Q2 results show some pressure and our guidance for Q3 expects there will again be pressure. So beyond that we don't have a forecast where you can make your own prediction as to how that will play out. But that has been the track record to date.

過去幾年，這項指標一直承受著壓力。第二季業績顯示有一定壓力，我們對第三季的預期也顯示壓力依然存在。因此，我們目前無法提供更具體的預測，讓大家自行判斷最終結果。但就目前的情況來看，情況確實如此。

Great, thank you.

太好了，謝謝。

Brian Nowak, Morgan Stanley.

Brian Nowak，摩根士丹利。

Thanks a lot, I have got two. Just to go back to the performance marketing and the incremental pressure you are seeing. Can you just help us out a little bit? Are you seeing deteriorating ROIs on a like-for-like basis or is this more geographic mix or channel mix? Just kind of talk a little bit about the drivers of the extra pressure you are seeing?

非常感謝，我有兩個問題。關於效果行銷以及您目前面臨的額外壓力，您能稍微解釋一下嗎？您觀察到的投資報酬率下降是按同類比較而言的，還是更多地與地域組合或通路組合有關？能否簡單談談造成這種額外壓力的驅動因素？

And then secondly, on cancellations, I think last quarter Danny talked about cancellations picking up a bit. I don't think I heard any mention at all this quarter. Just talk about cancellation trends you are seeing. Thanks.

其次，關於取消訂單，我記得上季丹尼提到取消訂單的情況增加。但我這季好像完全沒聽到相關消息。請談談你們觀察到的取消訂單趨勢。謝謝。

So, Brian, I will take the first one and Dan can take the question on cancellations. With respect to getting into more detail on performance marketing, we typically have tried to shy away from that because very often the color that we could give you would essentially be -- tip our hand in terms of what we are doing in the market.

布萊恩，第一個問題我來回答，丹可以回答關於取消訂單的問題。至於更詳細地探討效果行銷，我們通常盡量避免，因為我們如果透露更多信息，就等於直接暴露了我們在市場上的策略。

We are such a large player in the marketplace that a lot of times the trends are in part driven by what we are doing. So, I don't want to get into a lot of detail on that. I think as Dan said, we have seen pressure on that over the last several years and I think it is fair to say that some of that is competitive pressure with scale players like Expedia being able to be more aggressive in the market as their operational execution has improved.

我們在市場上佔據著舉足輕重的地位，很多時候，市場趨勢都在某種程度上受到我們自身行為的影響。因此，我不想過多贅述。正如丹所說，過去幾年我們確實感受到了這方面的壓力，而且我認為，部分壓力確實來自於競爭，像Expedia這樣的大型企業由於營運效率的提升，能夠在市場上採取更加積極的策略。

And essentially our goal is to continue to build market share of the business at reasonable ROIS and our outlook has not changed on that in any fundamental way over the last several years.

從本質上講，我們的目標是在合理的投資回報率下繼續擴大市場份額，而過去幾年裡，我們對此的看法並沒有發生任何根本性的變化。

And in terms of cancellation trends, Brian, no big change from last quarter, so the longer term trend has been that our cancellation rates have increased. There was a little bit more volatility in it last quarter and so we called that out. But the cancellation increases that we have seen are built into our gross bookings and room nights booked which were all net of cancellation. So we feel like the growth even net of that increase in cancels is pretty solid.

至於取消預訂的趨勢，布萊恩，與上季相比沒有太大變化，長期趨勢是我們的取消率上升。上季波動稍大，所以我們也提到了這一點。但我們看到的取消預訂量增加已經計入了總預訂量和已預訂房間晚數，這些數據都是扣除取消預訂後的淨值。因此，我們認為即使扣除取消預訂量增加的部分，整體成長依然相當穩健。

Great, thanks.

太好了，謝謝。

Douglas Anmuth, JPMorgan.

道格拉斯·安穆斯，摩根大通。

Hi, this is (inaudible) in for Doug, thank you for taking my question. My question is on the brand spend. I think you made a comment about trimming brand spend in 2Q, is this just (inaudible) pushed back over a change in strategy? And (inaudible) brand spend going forward, are you guys planning on doing any more brand spend in the US? And as a follow-up, can you talk about the growth in US versus Europe given the macro and security uncertainty in Europe?

您好，我是Doug，謝謝您回答我的問題。我的問題是關於品牌支出的。我記得您提到過第二季度會削減品牌支出，這僅僅是因為策略調整而被推遲了嗎？關於未來的品牌支出，你們是否計劃在美國增加品牌支出？另外，鑑於歐洲宏觀經濟和安全情勢的不確定性，您能否談談美國和歐洲的成長？

So, I will answer the first question on brand spend and Dan can talk about the macro impact on the US versus Europe. We said in our prior call that we expected to have seasonally higher brand spend than we typically would have in the second quarter as spend in Q1 was essentially shifted into Q2. We did experience a higher brand spend than we typically would but just not to the degree that we forecast.

那麼，我先回答關於品牌支出的第一個問題，丹可以談談這對美國和歐洲的宏觀經濟影響。我們在先前的電話會議中提到，由於第一季的支出基本上轉移到了第二季度，我們預計第二季度的品牌支出會比往年同期略高。我們確實經歷了高於往年的品牌支出，但並沒有達到我們預期的水平。

The spending in the United States in general will continue, I think you will continue to see brand advertising by priceline.com and by Booking.com in particular in the United States. So our outlook on making that investment over the long-term hasn't changed, but the absolute amount of that investment in the second quarter was a little bit less than we had forecast.

我認為，美國整體的消費支出將會持續，尤其是像Priceline.com和Booking.com這樣的品牌在美國的廣告投放將會持續下去。因此，我們對長期投資的看法並沒有改變，但第二季的投資總額略低於我們的預期。

And in terms of performance by region between US and Europe, and Europe is our biggest market by far, it is our most mature. So it is growing more slowly than our consolidated growth rate typically. We are pleased with the growth performance for Europe in Q2 and year-to-date. There were impacts in France and Belgium from terrorist attacks, but overall the region is still growing well.

就美國和歐洲兩大區域表現而言，歐洲是我們迄今為止最大的市場，也是最成熟的市場。因此，其成長速度通常低於我們整體的綜合成長率。我們對歐洲第二季和年初至今的成長表現感到滿意。法國和比利時受到恐怖攻擊的影響，但總體而言，該地區仍然保持著良好的成長勢頭。

US is one of our newest -- newer markets and is typically growing faster than our consolidated growth rate. And Booking.com in particular continues to build its business in the US. And so, we are pleased with our overall growth rate in the US.

美國是我們最新的市場之一，其成長速度通常高於我們整體的成長速度。 Booking.com 尤其在美國持續拓展業務。因此，我們對在美國的整體成長率感到滿意。

Thank you.

謝謝。

Lloyd Walmsley, Deutsche Bank.

勞埃德‧沃姆斯利，德意志銀行。

Had a couple questions on the vacation rental, the non-hotel business. The last few years you have given us a room night number or a booking number in that channel over the last 12 months. Wondering if you can give us an update there.

關於度假租賃（非酒店業務），我有幾個問題。過去幾年，您都提供過過去12個月內該頻道的房間晚數或預訂號碼。請問您能否提供一下最新的數據？

And then as a follow-up, just curious as you get more regulatory pressure on that type of inventory, I am curious what your approach is to lifting in markets where they have made certain types of it illegal. Are you still taking a really conservative approach? And then have you seen any -- I guess any tick up in your core hotel business in markets where they have gotten more restrictive on regulation of alternative accommodations? Curious what you are seeing there. Thanks.

然後，作為後續問題，我很好奇，隨著監管壓力加大，在那些已經將某些類型住宿定為非法的市場，你們是如何應對的？你們是否仍採取非常保守的做法？另外，在那些對替代住宿監管更加嚴格的市場，你們的核心酒店業務是否有所成長？我很想了解你們的觀察。謝謝。

With respect to the first question on quantifying the number of room nights in the non hotel business, that is not something that we have done in the last couple of quarters and we are not doing it this quarter. We have given the room counts, but we haven't given that level of detail.

關於第一個問題，即量化非飯店業務的客房夜數，我們過去幾季沒有這樣做，本季也不會這樣做。我們提供了客房總數，但沒有提供如此詳細的數據。

With respect to regulatory pressure, the Group is not taking the position that we would operate this business in markets and with properties where it is contrary to the law. We're a law abiding Company and we are not trying to disrupt the legal system. So, I guess if you would characterize that as being a relatively more conservative approach to it, that is our approach. And what was the third question?

關於監管壓力，本集團的立場是，我們不會在任何違反法律的市場和物業開展業務。我們是一家守法公司，我們不會試圖擾亂法律體系。所以，我想，如果您認為這是相對保守的做法，那就是我們的做法。第三個問題是什麼？

Pickup in hotel.

飯店接送。

In terms of impact to the core hotel. Some markets that have gotten perhaps more restrictive on alternative, are you seeing a benefit in your core hotel business?

就對核心酒店業務的影響而言，在一些市場對替代方案的限制可能更加嚴格的情況下，您是否看到這對您的核心酒店業務有利？

No, I don't think that the size of the non hotel accommodation business is being done away from us is big enough where that level of disruption would be visible to us in the positive sense.

不，我不認為在我們之外進行的非酒店住宿業務規模足夠大，以至於這種程度的干擾對我們來說不會產生積極的影響。

Great. Thanks, guys.

太好了，謝謝各位。

Chris Merwin, Barclays.

克里斯·默溫，巴克萊銀行。

So, I guess last quarter Expedia talked a bit about spending more dollars on Facebook and I think in your 10Q you listed Facebook as a brand advertising partner. So just curious if you have any plans to increase spend in that channel going forward? I know obviously it is not quite a performance based channel like Google, but if you can still track ROI in a platform does that make it easier to scale up spend there? Thanks.

所以，我猜Expedia上個季度提到要增加在Facebook上的投入，而且我記得你們在10-Q報告中也把Facebook列為品牌廣告合作夥伴。所以我想問你們未來是否有計劃增加在這個管道的投入？我知道Facebook不像Google那樣是完全基於效果的管道，但如果你們仍然可以追蹤某個平台的投資報酬率，那是不是更容易增加在該平台的投入呢？謝謝。

I think we would like to spend more money on Facebook going forward. We have a good relationship with them and we have found that a number of things that we have done on Facebook works well, particularly retargeting which really is more of a performance-based analysis the way we look at it. So, I would look for us to be doing more.

我認為我們未來應該增加在Facebook上的投入。我們與Facebook保持著良好的合作關係，並且發現我們在Facebook上開展的許多活動都取得了不錯的成效，尤其是重定向廣告，在我們看來，這更像是一種基於效果的分析。因此，我認為我們應該加大投入。

As you could see by Facebook's announcement, the scale of their advertising business is growing. And while it traditionally has been more of a brand advertising platform, we like to work closely with Facebook to find ways to make more performance oriented placements work for us and that is something that we continue to be interested in doing.

正如Facebook的公告所示，他們的廣告業務規模正在不斷擴大。雖然Facebook傳統上更專注於品牌廣告，但我們樂於與Facebook緊密合作，探索如何讓更多以效果為導向的廣告位為我們帶來效益，這也是我們持續關注的領域。

All right, thank you.

好的，謝謝。

(Operator Instructions). Tom White, Macquarie.

（操作說明）。湯姆懷特，麥考瑞。

Just one on kind of corporate travel opportunity. You guys have been kind of quietly innovating there recently. And I think a few quarters ago you said one in five bookings was corporate or business travel. How do you guys think maybe that mix looks like in three to five years? I mean can you guys kind of ever get to 50-50 you think with the product offering you have now?

就企業差旅這一領域而言，你們最近一直在悄悄地進行創新。我記得幾個季度前你們說過，五分之一的預訂是企業或商務旅行。你們覺得三到五年後，這個比例會是多少呢？我的意思是，以你們目前的產品組合，你們覺得有可能達到企業或商務旅行各佔一半的目標嗎？

And then just a quick follow-up, in terms of kind of the marketing efficiency of some of your newer customer cohorts, specifically for some of your newer geographies, just kind of curious where you think you are or kind of where they are trending relative to your more mature markets in areas like return on investment or repeat purchase behavior, direct traffic -- those types of metrics? Thanks.

最後還有一個小問題，關於您一些新客戶群（特別是一些新拓展的地區）的營銷效率，您認為他們在投資回報率、復購率、直接流量等指標方面，相對於您更成熟的市場，處於什麼水平或發展趨勢？謝謝。

Thanks, Tom. On the corporate travel opportunity, we always suspected that we had a substantial number of business users that were using our product, but we didn't until more recently have data on it which is where that one in five number comes from. And that intuition gave us reason to look at the market more aggressively and try to build some functionality that would be targeted directly at corporate travelers.

謝謝，湯姆。關於企業差旅市場，我們一直覺得我們的產品應該有很多商務用戶，但直到最近才有了相關數據，也就是五分之一這個數字的由來。正是這種直覺促使我們更積極地開拓市場，並嘗試發展一些專門針對商務旅客的功能。

And so, that one in five number represents the self-reported usage of our customers. And what the opportunity is is to build a business of business travelers using the tools that we provide for them and to try to get that share to go up. I wouldn't hazard a guess as to whether it would ultimately be 50-50.

因此，五分之一這個數字代表了我們客戶自我報告的使用。而機會在於，利用我們提供的工具，打造一個面向商務旅客的業務，並努力提高這個份額。至於最終能否達到五五開，我不敢妄下斷言。

In the United States the average hotel has 30% business traveler, 30% leisure traveler and 30% large groups for big hotels. So that gives you sort of a breakdown at least in the US market as to what the market kind of looks like. But we think there is a great opportunity to build awareness among business travelers that Booking.com in particular is a great place to go. And for business owners to use the tools that we are building which we think will help us build share there.

在美國，平均而言，飯店的客人組成中，商務旅客佔30%，休閒旅客佔30%，大型飯店的團體客人也佔30%。這大致展現了美國市場的組成。我們認為，在商務旅客中，尤其是企業主，有很大的機會提升他們對Booking.com的認知度，讓他們知道Booking.com是一個絕佳的預訂平台。同時，我們也希望企業主能夠利用我們正在開發的工具，幫助我們擴大市場佔有率。

With respect to marketing efficiencies in newer markets, it is traditionally been the pattern that we have been willing to invest in marketing in new markets in order to build share and to build awareness of our brands until we got to a point where we had achieved enough scale where the more normal ROI patterns would obtain.

就新興市場的營銷效率而言，我們歷來都願意投資於新興市場的營銷，以建立市場份額並提高品牌知名度，直到我們達到足夠的規模，從而獲得更正常的投資回報率模式。

I don't have anything particular to report to you on that front. There may still be some markets where we are not long tenured and are doing some investing and that would be very, very consistent with how we've run the business over the long-term.

在這方面，我沒有什麼特別要報告的。也許我們仍然會在一些市場進行投資，但我們在這些市場的投資時間並不長，這與我們長期以來的經營方式非常一致。

Thank you.

謝謝。

Brian Fitzgerald, Jefferies.

Brian Fitzgerald，傑富瑞集團。

Thanks. Jeffrey, you talked a bit about performance advertising on Facebook and maybe just wondering, are you currently using dynamic product ads for travel there on Facebook and Instagram? Any dynamic to call out with those formats specifically? And then you also mentioned KAYAK's Facebook messenger service in your prepared remarks. What has been the traction initially on that product? Thanks.

謝謝。傑弗裡，你剛剛談到了Facebook上的效果廣告，我想問一下，你目前在Facebook和Instagram上使用動態產品廣告推廣旅遊產品嗎？這些廣告形式有什麼特別值得一提的亮點嗎？另外，你在準備的發言稿中也提到了KAYAK的Facebook Messenger服務。這個產品最初的市場反應如何？謝謝。

So I will answer the second one first, which is the KAYAK product on Facebook is fairly new, as are most of the technology that is interacting with -- either with robotic texting or natural language processing with a voice like an [Alexa]. So that stuff is all in a very early stage.

所以我先回答第二個問題，Facebook上的KAYAK產品相當新，就像大多數與之互動的技術一樣——無論是機器人簡訊還是像Alexa這樣的語音自然語言處理技術。所以這些都還處於非常早期的階段。

And I think it is terrific for our teams to be innovating on those platforms because it puts us in a position to participate and benefit if those platforms ultimately grow to be meaningful sources of demand for e-commerce like ours.

我認為我們的團隊在這些平台上進行創新是非常了不起的，因為這使我們能夠參與其中，並在這些平台最終發展成為像我們這樣的電子商務的重要需求來源時從中受益。

With respect to the particular advertising products that are available on Facebook. Our teams look at everything. I don't have any particular comment on dynamic product adds or others. Dan, I don't know if you have any comment to make on that?

關於Facebook上提供的具體廣告產品，我們的團隊會全面評估。我對動態產品廣告或其他廣告形式沒有任何特別的評論。丹，你對此有什麼看法？

No, I know we are working closely with the Facebook team. Our teams are very innovative and they are looking hard to spend as much on those channels as they can at a reasonable ROI.

不，我知道我們正與Facebook團隊密切合作。我們的團隊非常有創新精神，他們正努力尋找在合理投資報酬率的前提下，盡可能地投入這些管道。

Got it. Thanks, guys.

明白了。謝謝各位。

[Ed] Sheridan, UBS.

[Ed] Sheridan，瑞銀集團。

Maybe just two. One that we get a lot from investors, Jeff, I would love to get your take, is how the competitive environment might be changing as a result of some of the hotel groups pivoting more towards trying to drive direct booking awareness either through couponing or discounting or loyalty reward programs, how you think that is impacting the competitive environment?

或許就兩個問題吧。傑夫，我們經常從投資者那裡聽到一個問題，我很想聽聽你的看法，那就是由於一些酒店集團轉向通過優惠券、折扣或會員獎勵計劃等方式來提高直接預訂的知名度，競爭環境可能會發生怎樣的變化？你認為這會對競爭環境產生什麼樣的影響？

And the second one on BookingSuite, wanted to know if we can get an updated there on how the product set continues to evolve, what that might be doing more broadly for the platform, especially with respect to driving sort of loyalty around inventory. Thanks, guys.

第二個問題是關於 BookingSuite 的，我想了解他們的產品組合是如何持續發展的，以及這些發展對平台整體有哪些影響，尤其是在提升顧客忠誠度方面。謝謝！

Okay, thank you, Ed. So with respect to the competitive environment and the hotel direct book, the hotels have consistently been working hard over the years to maximize the traffic that goes to their own direct websites. And they have done it over the years through driving single image pricing, through very substantial investment in their own web experience. And we look at the availability of different prices for their members on the website as an evolution of that effort.

好的，謝謝你，艾德。關於競爭環境和飯店直訂，多年來，飯店一直在努力提升其官網的流量。他們透過推行單張圖片定價，並對自身網站體驗進行大量投資來實現這一目標。我們認為，網站上為會員提供不同價格是這項努力的延伸。

Our approach is to try to make sure that our customers have the best prices that are published and available. And I think we are doing a pretty good job of accomplishing that. And I think that given the scale of our business we are in a position where it is a reasonable ask that the largest player in the space be able to show competitive prices to its customers.

我們的目標是確保客戶能夠享受到公開且可用的最優價格。我認為我們在這方面做得相當不錯。而且，考慮到我們公司的業務規模，作為行業巨頭，我們有理由要求客戶能夠獲得具有競爭力的價格。

My belief is that those efforts will continue and we will continue to press to make sure that we have got competitive pricing. And I will say that if over the long-term the efforts by the chains or others is essentially starting to drive consumers to expect to book only discounted prices rather than published retail prices, that the ultimate impact of that on hotel ADRs is probably not going to be great for the chains.

我相信這些努力將會持續，我們也會繼續努力確保價格具有競爭力。但我必須指出，如果從長遠來看，連鎖飯店或其他機構的努力最終導致消費者期望只預訂折扣價而非公佈的零售價，那麼這對飯店平均房價的最終影響可能對連鎖飯店不利。

And companies like ours and other large competitors are in the space to -- in the space are very well-positioned to advertise substantial discounts as well. And so, my comment there is at some point it actually might not be a great idea to push the market and push consumers into expecting to book only at discounted prices.

像我們這樣的公司以及其他大型競爭對手，在這個領域佔有非常有利的地位，可以大力宣傳大幅折扣。因此，我的觀點是，在某種程度上，強迫市場和消費者期望只能以折扣價預訂，實際上可能並非明智之舉。

On BookingSuite, the product continues to evolve. I think the team is excited about revenue management tools that are now being made available to customers. And I think the customer interest and uptake on that has been good. Ultimately having our engine drive direct bookings for small- and medium-sized hotels we still believe is a good thing.

BookingSuite的產品一直在持續發展。我認為團隊對目前提供給客戶的收益管理工具感到非常興奮。而且我認為客戶對這些工具的興趣和接受度也很高。我們仍然相信，讓我們的引擎為中小酒店帶來直接預訂是一件好事。

A good thing for the hotel because it allows them to participate in a channel that they were not participating in and help build their brand via a direct website that we can build for them and certainly provide the booking engine for. And ultimately it does help us because it provides us with excellent inventory and builds our relationship with the hotel, which is over time very important to us as well.

這對飯店來說是件好事，因為這讓他們能夠參與到之前未曾涉足的管道中，並透過我們為其搭建的專屬網站（當然也包括預訂引擎）來幫助他們建立品牌。最終，這對我們也大有裨益，因為這為我們提供了優質的房源，並鞏固了我們與飯店的合作關係，而這對我們來說也至關重要。

Perry Gold, MoffettNathanson.

佩里·戈爾德，莫菲特·納坦森。

At what point in the lodging cycle do you believe hotels are generally forced to lean in more aggressively to drive demand through your brands? Is it when RevPAR first goes negative, slightly before or sometime afterwards? Thanks so much.

您認為飯店通常會在住宿週期的哪個階段被迫更積極地透過自有品牌來刺激需求？是每間可供出租客房收入（RevPAR）首次出現負成長時，還是稍早一些，亦或是之後？非常感謝。

We actually think it is good for the hotels to lean into our products in any market because ultimately, if they use our channel to drive strong demand for their property, it puts them in a position to maintain or increase their ADRs even if the market is relatively strong. So, our look at it would be that hotels should participate aggressively at all times in order to maximize their RevPAR.

我們認為，飯店在任何市場都應該積極利用我們的產品，因為最終，如果他們透過我們的管道為其酒店帶來強勁的需求，即使市場行情相對強勁，他們也能維持甚至提高平均房價。因此，我們認為飯店應該始終積極參與，以最大化其每間可供出租客房收入（RevPAR）。

There is no question that if ADRs start to drop, and in particular occupancy starts to drop, then hotels may have more of an incentive to participate in programs that could enhance the demand that they get from us. But we think it is a good idea regardless of market cycle.

毫無疑問，如果平均房價（ADR）開始下降，尤其是入住率開始下降，那麼飯店可能會更有動力參與那些能夠提升其從我們這裡獲得的需求的專案。但我們認為，無論市場週期如何，這都是一個好主意。

Great, thanks.

太好了，謝謝。

Kevin Kopelman, Cowen and Company.

Kevin Kopelman，Cowen and Company。

Thanks a lot. So you mentioned hitting about 24 million bookable rooms. Can you give us any color on how you are thinking about runway for properties and rooms and what kind of addressable market you have there? Thanks.

非常感謝。您提到可預訂客房數量將達到約2400萬間。能否詳細說明您對飯店和客房未來發展前景的規劃，以及您認為潛在的市場規模？謝謝。

We still think there is a substantial opportunity to increase the number of properties on our websites and on the Booking.com platform in particular. And as we mentioned in the prepared remarks, fairly substantial growth in the size of the platform over the last couple years I think is evidence of that.

我們仍然認為，在我們的網站，尤其是Booking.com平台上，房源數量還有很大的成長空間。正如我們在準備好的演講稿中所提到的，過去幾年平台規模的顯著成長就證明了這一點。

You can tell from the math and we have said on prior occasions a number of times that the typical average size of the property that we are bringing onto the platform now is smaller because we are dealing with non-hotel accommodations to a large degree. And those tend to be much smaller than that larger hotels, most of which we have already addressed, although there is still is opportunity in the hotel space as well.

從數據中可以看出，我們也曾多次提到，目前我們平台上的房源平均規模較小，因為我們主要處理的是非飯店住宿。這些房源往往比大型飯店小得多，我們已經處理了大部分大型飯店，儘管飯店領域仍然存在機會。

So in sum, substantial opportunity to continue to increase the size of the platform, although a diminishing return in terms of the number of rooms available per property.

總之，儘管每個房產可提供的房間數量收益遞減，但仍有很大的機會繼續擴大平台規模。

Thanks, Jeff.

謝謝你，傑夫。

Justin Patterson, Raymond James.

賈斯汀·帕特森，雷蒙·詹姆斯。

Going back to vacation rentals, we have seen one of your competitors put up some pretty solid results; you are still having solid results. Can you talk about just the advantage that you have from having the -- not charging the consumer a fee here with bookings? How long do you think charging the consumer is actually sustainable in this market? Thanks.

回到度假租賃市場，我們看到您的一個競爭對手取得了相當不錯的業績；您目前的業績也很穩健。您能否談談您不向消費者收取預訂費用的優勢？您認為在當前市場環境下，向消費者收取費用這種做法能持續多久？謝謝。

I think we like our model compared to the other models out there. We have a scale customer base that is used to doing business with us on these terms. And I think we are doing a good job of building relationships and the business processes and the automation to enable us to deliver the experience to the user when they are booking a non-hotel accommodation or a property that is not being managed by a professional owner.

我認為與其他模式相比，我們更喜歡我們目前的模式。我們擁有龐大的客戶群，他們已經習慣以這種模式與我們開展業務。而且我認為，我們在建立客戶關係、優化業務流程和實現自動化方面做得很好，這使我們能夠在用戶預訂非酒店住宿或非專業業主管理的房產時，為他們提供優質的體驗。

So we like that business model; we like that hand of cards that we have been dealt. I think that HomeAway's customer base and their owners are chafing a little bit at substantial increase in fees. And ultimately in a competitive marketplace for these types of properties, consumers have been shopping around for hotels for 15, 17 years now.

所以我們喜歡這種商業模式；我們喜歡我們目前所處的局面。我認為HomeAway的客戶群及其業主對費用的大幅上漲感到有些不滿。而且，在這個競爭激烈的房源市場中，消費者在過去15到17年裡一直在貨比三家尋找飯店。

And it is probably the case that over time they will shop around for vacation rentals. And ultimately it will be about finding the best value. And I am hopeful that we will be able to provide the best value.

而且隨著時間的推移，他們很可能會貨比三家尋找度假租賃房源。最終，他們會重視性價比。我希望我們能夠提供最佳性價比。

Thanks.

謝謝。

Peter Stabler, Wells Fargo.

Peter Stabler，富國銀行。

I have got a quick follow-up to Eric's question on hotel and direct initiatives. Is it safe to assume that to the extent that hotels are offering significantly discounted prices on their direct channels that they will suffer a negative impact in terms of their ranking position on booking.com? Thanks very much.

我有一個關於Eric提出的飯店和直銷管道問題的後續問題。如果飯店在其直銷管道提供大幅折扣，是否可以認為這會對其在Booking.com上的排名產生負面影響？非常感謝。

I am not going to get into a conversation about if they do this will you do that. That is between us and the hotels. And judging by the questions I just want to underscore that we have great long-term relationships with the hotel chains. We have been in business with them since I started in the business in 2000. And I would expect those relationships to continue to be strong.

我不想討論「如果他們這樣做，你們會怎麼做」這種問題。這是我們和酒店之間的事。從大家提出的問題來看，我只想強調我們與這些連鎖飯店保持著良好的長期合作關係。自從我2000年入行以來，我們就一直與他們合作。我預計這些合作關係會繼續保持穩固。

And we provide a lot of business for the hotel chains and we provide business in languages and in destinations that it is hard for them to access directly. But we have a unique benefit that we provide and we absolutely value the inventory that we are getting from our partners here. So, I wouldn't express it as if they do this we will do that kind of a situation. This is a partnership.

我們為連鎖飯店帶來了大量業務，而且我們提供的業務涵蓋了他們難以直接觸及的語言和目的地。但我們擁有獨特的優勢，我們非常重視從合作夥伴那裡獲得的房源。因此，我不會說「他們這樣做，我們就那樣做」之類的話。這是一種合作關係。

Thanks for the color, Jeff.

謝謝你提供的色彩，傑夫。

Michael Millman, Millman Research.

Michael Millman，Millman Research。

Following up some other questions regarding the effects of the economy and terror, particularly in Europe. Would you suggest that you are seeing about the same number of travelers? Are you seeing -- and in the US. However, particularly in Europe are you seeing them more to the south where there are lower ADRs? And are you seeing an effect from that?

關於經濟和恐怖主義的影響，尤其是在歐洲，還有一些其他問題。您認為遊客數量是否基本不變？您是否也觀察到—在美國也是如此？然而，尤其是在歐洲，您是否發現遊客更多地湧向南部地區，那裡的平均房價較低？您是否觀察到這方面的影響？

And secondly, you talked about the long-term corporate, but is the conditions affecting corporate travelers -- in other words corporations are trying to keep their people -- they think keep their people safe?

其次，您談到了長期的企業問題，但這些情況是否會影響商務旅客——換句話說，企業正在努力保障員工的安全——他們認為這些情況能夠保障員工的安全嗎？

On the first question, Michael, we have seen some relative strength in the South. Spain and Portugal have been very strong markets. Turkey has not, Turkey has been an impaired market between terrorist attacks and then the attempted coup. Some of the other markets that have been strong like Ireland and Germany. So people shying away from some of the markets where terrorist attacks have been taking place in the past and where maybe they have more of a fear of safety for traveling there at the moment.

關於第一個問題，邁克爾，我們看到南方市場相對表現強勁。西班牙和葡萄牙市場表現非常出色。土耳其市場則不然，由於恐怖攻擊和未遂政變，土耳其市場受到重創。其他一些表現強勁的市場，例如愛爾蘭和德國，則相對遜色。因此，人們似乎在迴避一些過去曾發生過恐怖攻擊的市場，他們可能更擔心目前前往這些地區的安全狀況。

And, Michael, I wouldn't -- there is nothing that we can see from our results that indicates a major trend of corporations pulling back travel because of safety concerns. I am certain there are some business travelers who have canceled trips in the immediate aftermath of some of these events. But broadly speaking a major pullback is at least not obvious in the numbers we are looking at.

邁克爾，我不會這麼說——從我們的調查結果來看，沒有任何跡象表明企業因為安全顧慮而大幅減少差旅。我確信，在某些事件發生後，確實有一些商務旅客取消了行程。但總的來說，至少從我們目前掌握的數據來看，並沒有明顯的大規模差旅縮減跡象。

And the Spain and Italy question, is that affecting your ADRs?

西班牙和義大利的問題是否會影響你們的ADR？

Well, Spanish ADRs have been very strong, so all of that demand shifting there is actually having a positive impact on the ADRs in those markets. And overall you can see our ADR trend has been roughly stable, down slightly less than a percent. So nothing really to call out there.

西班牙的ADR表現一直非常強勁，因此所有向西班牙轉移的需求實際上都對這些市場的ADR產生了積極影響。整體而言，我們ADR的走勢基本上穩定，僅略微下跌不到1%。所以沒什麼特別需要特別指出的。

Okay, thank you.

好的，謝謝。

Naved Khan, Cantor Fitzgerald.

納韋德汗，坎托費茲傑拉。

Jeff, I think in your prepared remarks you touched upon KAYAK and its strong performance. Can you give us some more color on what is actually working here and if you've launched in any new markets? And then I have a follow-up.

傑夫，我想你在事先準備好的發言稿中提到了KAYAK及其強勁的表現。你能否更詳細地介紹一下KAYAK的成功之處，以及你們是否已經拓展到任何新市場？我還有一個後續問題。

So, KAYAK has had a good run of performance here this year. They have done a very nice job of not only building query demand in the United States and elsewhere, but they are doing also a good job of continually innovating with respect to their product and with respect to mobile in particular, which helps with the flow-through of the economics.

所以，KAYAK今年的表現相當不錯。他們不僅在美國和其他地區成功提升了搜尋需求，而且在產品創新方面也做得非常出色，尤其是在行動裝置方面，這有助於提升整體經濟效益。

So, they are doing a very nice job. And their international expansion continues. I don't have anything to tell you particularly about this market or that market, but KAYAK continues to I would say in a measured way build its footprint internationally.

所以，他們做得非常出色。他們的國際擴張也在持續。關於某個特定市場，我沒有什麼特別要說的，但KAYAK一直在穩步擴大其國際影響力。

Okay, thanks. And then, Dan, can you talk a little bit about, what does your guidance include with respect to any kind of impact on the Olympics positive or negative?

好的，謝謝。丹，你能否談談，你的指導意見中包含哪些關於奧運可能受到的任何正面或負面影響的內容？

We don't see any major impact one way or the other on that event, so we didn't call anything out, we didn't build anything specifically in there.

我們認為這件事不會對事件產生任何重大影響，所以我們沒有特別提及此事，也沒有在其中做出任何具體安排。

Okay, thanks. And then one more question if I may since nobody asked it. So, any update on the CEO search?

好的，謝謝。如果可以的話，我還有一個問題，因為之前沒人問過。 CEO的遴選工作有進展嗎？

Naved, the CEO search continues and the normal way with a committee of our Board and a recruiting firm and they are right in the middle of it.

Naved，CEO 的遴選工作仍在繼續，按照正常流程，由董事會的一個委員會和一家招聘公司負責，他們目前正處於遴選過程的核心位置。

Thank you.

謝謝。

We have no further questions in the queue. This does conclude the question-and-answer session. I would now like to turn the call back to The Priceline Group team for closing remarks.

隊列中沒有其他問題了。問答環節到此結束。現在我將把電話轉回給Priceline集團團隊，請他們作總結發言。

Thank you all very much for participating in the call.

非常感謝各位參與此電話會議。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may all disconnect.

女士們、先生們，感謝各位參加今天的會議。會議到此結束，請各位斷開連線。