TripAdvisor Inc. (NASDAQ:TRIP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 08:30 am ET


TripAdvisor Inc. (NASDAQ:TRIP) Q2 2020 Earnings Conference Call - Final Transcript


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Q & A

Thank you. [Operator Instructions] Our first question comes from Deepak Mathivanan with Barclays. Your line is open.

Deepak Mathivanan

Hey guys, thanks for taking the questions. Steve, I understand that it's still in early days, but can you talk about how user behavior is different in the new homepage? What products are getting more traffic and is engagement different to one product versus the other compared to the prior experience?

And then the second question is, you mentioned in the Letter that the traffic in European markets recovered faster than U.S. Obviously U.S. was early to reopen in many states and many European nations are still in the reopen mode right now. What do you think the traffic recovery was driven to be faster in Europe for you? Is it a function of product mix in Europe more towards restaurants, attractions? Can you provide a little bit additional color there? Thank you.

Stephen Kaufer

Sure, Deepak. Thanks for the questions. So to start on the homepage, look we're -- as we've talked about our overall message of helping travelers' on the considered trip, a trip that really matters to people, we needed to move the focus away from, hey, it's a hotel price comparison site or just review site to really focus on a little bit of inspiration, a little bit of guides, little bit of more personality on the site, showcasing all the different things we do.

So yes, we did see some shifts from categories away from things like a flight, it's a small piece, and more towards overall exploring geographies. The nice thing is that we saw an immediate uptick in repeat rate, people that came in on the homepage were more likely do come back, because the experience was just better.

Category shifts beyond that are probably more related to COVID, in terms of the type of trips that people are taking are clearly much more domestic. They tend to be a little shorter duration and they're moving away from urban centers and towards the outdoors, the beach, the -- places where social distancing is so much easier. And that's --- I think that's probably less our homepage redesign than obviously the circumstances around us.

To your second question, the European markets recovering faster than the U.S., it's all about safety. Our surveys are showing this when travelers' feel comfortable that they can go somewhere they will. So as European markets opened up because caseload, frankly the chance of contracting the virus is so much lower, people are feeling much more comfortable traveling.

The U.S. has not been shining in that regard. And so while we had opened up earlier or not locked down as hard, we're paying the price now in terms of cases on the rise in so many states and that's put a damp -- a meaningful damper on the travel rebound post the initial outbreak. So, no surprise, I think you'll see a very uneven recovery, different geographies, mostly depending on caseload and where the hotspots emerge.