Booking Holdings Inc. (NASDAQ:BKNG) Cowen Annual Technology, Media and Telecommunications Teleconference June 2, 2022 10:50 AMm. ET
Participating companies
Glenn Fogel – President and Chief Executive Officer
David Goulden – Chief Financial Officer
Conference Call Participants
Kevin Kopelman – Cowen & Company
Kevin Kopelman
Thank you all for being here at cowen’s 50th Annual TMT Conference. My call is Kevin Kopelman. Je covers hotels and online for Cowen. Today we are very pleased to have Booking Holdings. We have Glenn Fogel, the CEO; and David Goulden, CHIEF Financial Officer of Booking Holdings. Thank you so much for being here.
Glenn Fogel
Thanks.
david goulden
My pleasure.
Kevin Kopelman
So let’s get started. First of all, one of the questions everyone is asking is how you would describe the travel environment right now, as we approach summer, and do you see an effect on your customers’ habit about inflation in the economy?
Glenn Fogel
So yes, we announced our earnings and we are very satisfied [they’ll] [ph] talking about April, you know, the booking numbers were well above what they were in April 2019, and the bdU were above. It all was, it’s really cool to see that. The booking window becomes more normal, showing that the travel network is adjusting more confidently and can and will travel. Listen, there is no doubt. There are [indistinguishable] clouds where we read the same things and all that. The fact is, he said [indistinguishable], hunting the numbers. We haven’t noticed any of them having an effect on that, although, of course, it’s hard to convert what would have been otherwise.
One of the questions they ask us is, well, ADRs, you know, they’re increasing, what’s going on and everything, and on the problem, you can’t really say, well, if the ADRs hadn’t been higher, what would it be?What has been the result? You know, historically, you’d regularly see other people with a star-level [down trade][ph], maybe they were going to travel, or maybe they cut a day or two the way they were going to do it, but they still spent the same amount of money. But for now, it’s hard to say, well, they would end up opting for the [four stars] [ph], if the value segments are high, would they have gone through the five stars or not?I don’t know, and it’s not that relevant.
For us, they still spend cash on travel, which is all well and good. We talked about looking up our summer numbers and said bookings were 15% ahead of what they were at the same point in 2019 for our summer season, our peak summer season. And it was for everybody. And if you limit it only to Europe and the United States, we see 30%. That’s impressive. They were happy. We are delighted. So overall, we’re very happy with what we’ve been able to report.
Kevin Kopelman
The kind of variation of what we’re hearing now is that investors are wondering if this is a peak summer season, and then we’ll see things fall out after the summer. What things are you looking for and do you have visibility beyond this summer season as we start looking into fall and beyond?
Glenn Fogel
Yes. C it’s an attractive question, it rarely is. And I think, you know, I was reading yesterday. I read in the news yesterday’s assembly with a bunch of bank CEOs talking about what the long term will be and they all have other opinions, [etc. ] [ph]. For example, we take a look at our numbers and everything. We take a look at anything from so far away and after the summer season. Numbers in general, the way other people organize their Array, is such a small number, it’s not really helpful to actually check what you’re expecting. Running is going to do today compared to anything in the fourth quarter. This is not the way other people organize their businesses inside.
Therefore, it is actually not useful at all. But I don’t think anyone has any certainty, and I can tell you just by researching how it’s been in the last 3 years, the global one: if you said, oh, nine months from now or whatever, it’s actually been It’s been Hard for anyone to expect anything. So what we’re going to do is keep generating wonderful products, wonderful services, and try to get as much stock as you can imagine and hope that there is no new war and that the existing war disappears. pandemic, and the existing pandemic is going away. No Monkeypox, and other people continue to enjoy traveling.
Kevin Kopelman
Border crossing has been a very important component of your business. This has been particularly affected by the pandemic, but more recently it has begun to recover again. What do you see in terms of the visitors’ habit with the national, which has been so strong?Now that border crossing is returning, how do you think it will play out?
Glenn Fogel
Yes. Listen, there is no doubt that you can not do the same holidays at the same time as a couple, you can not take domestic and foreign holidays at the same time. It will have to decide on one or the other [indistinguishable]. And you’re right. Over time, there has been a trend towards the opening up of more and more countries. I move to Europe last year, now in spite of everything I am moving to Europe from the United States. Then, it will happen, it will be a trend, etc. The query is, does this translate into more general, less general or not?, are other people spending more money, less money?I don’t think there’s much, again, happen with the macro overview.
People have X amount of money, they need to travel, they will travel and we will have a part because we are strong both nationally and internationally.
Kevin Kopelman
Yes. So, I need to research the reservation numbers. Strong neighborhood. You said that in April, your overnight remnants were 10% higher than in April 2019, and that’s overall despite Asia and Russia-Ukraine, what are the main drivers of market percentage gains and are they sustainable or [what do you mean] [ph]?
Glenn Fogel
Yes, I think, first of all, I think sharing, anything we’ve seen better over a long period of time, is fine, maybe annually, but I’m commenting on Kevin and going back to April. So, we know that when we look at 2021 compared to 2019, we have gained some market share issues, especially in the United States and Europe or during this era. We know we are moving forward with the rate of expansion he spoke of to stay ahead of the global recovery in 2022. So we are satisfied with what we have done.
As for the profits and sustainability of the factor [outlook] [ph] returns to the United States, we intend to take advantage of the systems that have given us good results in 2021. We think there are a lot of opportunities for us there. We see more opportunities in some spaces in the U. S. In addition to expanding awareness of our logo among consumers, we did that with the logo campaign, so everyone noticed more of them this year than they have noticed before.
Improving the competitiveness of our choice of accommodation in the U. S. In the U. S. , where we have opportunities, we’re so [underweight] [ph] out there. Of course, I had Priceline for some time. And then optimizing accommodation cross-selling with flights and invoices are all things we do in the U. S. The U. S. [indistinguishable] over most of what we already earned.
We hope that in the U. S. , which has treated companies and organizations that we’re under-indexing a bit, we’re probably recovering more. in the longer term, we believe that gaining market share depends on the quality of our broadband facilities and how we place them on the market for existing new customers, and we feel pretty smart in all 3 cases.
Kevin Kopelman
Communicate about theft, what was the impulse of this kind of thing?How high do you see it becoming? And also, how do you think about the monetization of flights?
Glenn Fogel
It is ok. Of course. So, the momentum is really tied to our idea of connecting and solving a bigger challenge for our customers. Subsequent trips are still fraught with friction. We do all this ourselves or ask someone else in the circle of family members to do it for us and we know how frustrating and confusing it can be even if you use a wonderful service like ours for part of the trip, but the rest is done by you. it may have left the industry in the wild.
So we have a lot of feedback from our consumers. They like us to solve more problems for them while they travel. We analyze this thoroughly. Obviously, in Booking. com, where we make the maximum vital changes. We have focused on hosting for many, many years. We did our studies and the consumers said, listen, we love what you do for us there. Simplify flying. Simplify floor transport, make it clear, make it transparent. Let me pay in one place, and I will do more with you. That’s the momentum.
In terms of where we are, we are making smart progress. We are now live on Booking. com with flights in 40 countries, to 34 countries that [cite before] [ph]. As a result, more than 70% of our visitors to book accommodation can now watch a flight if they wish from Booking. com. The company as a whole, we are making wonderful progress. We sold five million tickets in the first quarter. That’s 2. 5 times what we sold in the first quarter of 2019. Therefore, it is increasing very rapidly.
What we find in Booking. com are attractive knowledge problems of what we have seen so far. So what we see is that 70% of the other people booked a flight on Booking. com, 70% of the other people, the flight was the first thing or the only thing we booked. The only thing is the opportunity for us to sell more, but what that tells us is that this is a new funnel for us. It’s a funnel for us to bring consumers to the formula we didn’t make. get before, and then a good percentage of other people’s e-book flights, extra e-book stuff in the [indistinguishable].
So, we have an intelligent knowledge that indicates that the flight is an anchor point for us [raft] [ph] of new customers. And finally, what we’re seeing is that all those flight customers, about a quarter of them, are new to us. which we had never noticed before, which is good for us at the beginning of this level of implementation of our flights, because we haven’t announced the flights much. new customers. Again, those also take advantage of healthy housing tax rates.
As for where this could go, we haven’t given a single point of knowledge, but we believe that flights can be multiple right now and can become a significant part of our overall TGV. This may not possibly overshadow the length of the suits, but it may in fact make up a significant part of our overall HSR as you build it over time.
david goulden
The most important thing to keep in mind is also the duration of our company and the fact that we did not have any flights in Booking. com. And that’s a relatively recent expansion. However, we are the largest company in the world without it. And that’s [true for] the flight is [running after] [ph] hosting with the next largest vertical out there. This is the concept that we can now master that now the opportunity is simply massive for us.
Kevin Kopelman
In those first flights, how do consumers locate the flights of Booking. com, is it by advertising or are they already on the side and see it on the side?
Glenn Fogel
It’s in every other form. And what’s appealing about that is also how, David just said, we haven’t done any marketing for this big thing. So the query component was, where are those other people that we’ve never noticed before?How were they provided for us? Where did they come from?Well, there’s a bit of [matter] [ph]. There are some right now. We don’t do a lot of Google flying stuff there. And certainly, there’s a component of the other people who do it. They ended up on our site for some other reason. They’ve noticed flights and now they’re, [indistinguishable] flights there. And all the other things, though, I’ll tell you, again, looking for where we are without having done a big marketing crusade for flight control. This is, again, an opportunity.
Kevin Kopelman
Ouais. Et so, the acquisition of Etraveli, what will this change?What brings Etraveli to the table?
Glenn Fogel
So our flight product is Booking. com our flight product, but Etraveli powers the back-end of that product. We have no contracts with the airlines. We don’t do all the complex and administrative things. All this is done through any [Traveline] [ph], etc. They do other pretty sophisticated things. And it’s a matter of structure or purchase. And the idea is, if we look at the combination of the two companies, we can work much more successfully in combination to try to bring our flight product to life, and that’s why we really need to bring in. They have the right control there.
They’re very experienced, great, you know, basically, [indistinguishable] AI stuff, what’s the right offer to do the right customer, things like that?So we’re looking for that because we think it’s going to drive what we’re doing right now, which is pretty good, but we can do even better.
Kevin Kopelman
It is ok. and when does it close?
Glenn Fogel
And we would say it would this year.
It is ok. Let’s communicate about a home of choice. This has been a great domain of pandemic expansion. And then can you tell us about the increase in the United States?You communicate about passing after [U. S. subs] [ph], what do you say to [U. S. host] [ph] to convince them to log in to Booking. com when they’re probably already on Airbnb and Vrbo here and to move to this platform?
Glenn Fogel
Ouais. Non. Et I’ve been talking about the importance of having a competitive product for a long time. That a host in the U. S. In the U. S. , think of hiring us as a way to get more guests. large percentage of market position in Europe in the select hosting business, however, other people in the U. S. For transportation and vacations, who can I use?Now I will say, I will go to Booking. com and pick up this Villa on the beach.
We know we want to have a better product than this and we’ve done some things recently to improve, and I’ll give you examples like, [first] [ph], liability insurance. If you own a space and want To Rent it to strangers, one of the things you could be involved in is that they sneak into the kitchen, break their legs. Who’s going to pay you that? And that’s it: if you thought a dealer was going to give you free insurance for you, that’s fine, but we didn’t, others did, we didn’t. Now we do. That’s an [indistinguishable] reason.
Now I’m going to use it because I’m not going to use it because I don’t want to worry about it. And then you end up with some of the big asset control corporations and you take care of the bills and how we do all kinds of reconciliations. In the past, it was like, say, in the most productive system. And one of the things they told us, they said, look, you want to improve.
We have to say it’s clumsy, it’s not easy, and can you please fix it?And we did. And now we have a much larger payment formula that works with really big asset managers, so feeds and reconciliations, everything works much better, it’s another way to get more inventory. And we have a list of things because we’re talking to those hosts. And we’re not just talking to hosts that are already connected. Let’s talk, why are you with us? We can bring in new customers, and they could give us reasons. And those are things that happen on the list of things that want to evolve and we’re uploading them. And it’s a step-by-step procedure and we’re getting there and doing it more and more [indistinguishable].
Then there’s the consciousness that turns other people out of construction saying, what are you going to use?Nobody thinks that, well, you want to make sure they’re aware of it. And we’re going to make sure that there’s also this demand-driven marketing, but you can’t do it until you have enough products that are valuable, that come to visit, don’t see what they want, don’t buy.
Surely I know we are where I would like us to be. I’ve been saying this for many years, but we’re in the process of sub-indexing this. We have a wonderful product in Europe. The paints are very good. We’re a very important player there, and we’re slowly building here. We’ll continue to work on that.
Kevin Kopelman
Is the resumption of the foreigner a possible driving force there and can, when it is less difficult to say, hey, we can bring all the consumers of. . .
Glenn Fogel
Well, that’s it, you take it to the host. You are a kind of Array, anyone who has a product that they need to sell and tells them how you are going to bring them a visitor and you are going to bring it. for them with the right value and it’s going to be easy to use and you’re going to love it and it’s making life wonderful, and therefore, put it on our shelf in that aspect and that’s the land. And that’s all we continue.
There were a lot of other [indistinguishable] people there for a conference, and we made sure they were more aware of us. We’re going to keep doing it, because one of the things is also making sure other people know that we have this product and that we can bring them more demand, that’s what it’s all about.
Kevin Kopelman
So, yes, it’s a smart transition and to communicate about payments, as you discussed there, what motivates is the transfer to payments, is it just accommodation of choice?And can you see how the visitor experience is evolving?And then what’s that like, and [it’s finances] [ph]?
david goulden
Payments are incredibly vital for many other reasons. Let’s start with some basics about payments. And that’s what I think glue is. So if you need to offer more than just an agency-based hotel product where someone shows up at the hotel and will pay: use a credit card and pay, [indistinguishable] do anything other than that, you must have a payment system, right?
You need to make a housing choice. Well, you don’t have to show the combinations of options, put your credit card and get paid since there is no one there. You have to have invoices there. But even more, if you need to do merchandising, if you need to mix things up, you need to have a package-like product, we’re going to stick deeper to them, given our size, volume, and all that stuff. And we can do all kinds of things, it’s like protecting ourselves to make things easier. And eventually we can do things like buy now, pay later, and we can do things like pay your own currency.
And there are so many things that can be done. And to do this, you want to have payments. And so we built step by step. Did I miss anything important about what we mentioned?
Glenn Fogel
I think you’ve covered the main points. I think one more point in Europe, I think the regulation of invoices is complicated. So, especially for cardless transactions, you want to have multi-factor authentication, not all small houses have the investment to set this up in their payment system. Therefore, they may not now be able to settle those transactions. And someone like us who invests cash in this, we can take a moment or a third form of authentication at the time of booking, we can provide this service to the hotel so that it continues to settle for these types of bookings.
david goulden
And that’s one of the elements. what do we do?Why do we exist?We supply other people who do not have this service or who use it because this service is more expensive. Thus, we facilitate the management of their business, their hotels and invoices are part of us. There are so many other parts of the visitor service that we do, that they can’t do. The marketing we do, which they can’t do so well and in many. We offer a price proposal, so hotels use us. Otherwise, they wouldn’t.
Kevin Kopelman
Let’s communicate the sale for a minute. I think it’s similar to what you do in the field of invoices, but how vital the sale has been, what are you doing there?
david goulden
This is vital in the long term to continue to offer more price to our consumers and offer more opportunities for our partners to get more consumers. Therefore, the sale comes with other bureaucracy and flavors, etc. Simple example of a challenge where a hotel, for example, might be offering a loose breakfast, is a type of sale. You stick to the procedure and there is a challenge that bothers you. Another thing we market is that we mix two products.
Let’s say we mix where you have to get off the flight, now you have to take transportation on the floor and now to get from the airport to the hotel, we may be offering a product such as, for example, a limousine type service, car service. And car service may be offering less value than it would be offering the general public through our process. Therefore, it is hidden, but it can only do so because of payments.
You can pass with so many other variants. And what’s wonderful is the AI, all the knowledge we have to make sure that the offer that’s being presented is the one that’s going on to convert and deliver a wonderful price to the customer on the one hand. On this side, it provided a wonderful opportunity for the provider spouse to get more business without cannibalizing their other channels.
Kevin Kopelman
Let’s move forward and communicate about marketing, many. . . you communicated about it, but can you communicate your plans to support yourself this year?And then, investigating what has happened so far, why have we realized this?it has had, I think, on the basis of gender-based violence, it had some influence in the first quarter. So why haven’t we noticed this kind of inclination more so far?
Glenn Fogel
Of course. So, in the long run, let’s be clear. In the longer term, our plan is to leverage our marketing spend, through a superior [indistinguishable] combination. We saw it in 2019. We saw it in 2021. But this year, we said we were looking to take another approach, okay, to answer your question. And that’s partly because we’re coming out of an environment where other people haven’t gone in two years. And, you know, this year will definitely be a year where the surgeon is strong.
If they’ve traveled, maybe they’re not as familiar with the platforms as they used to, right?Maybe that loyalty has been reduced a bit because they haven’t traveled in two years. So in a recovery environment where we expect things to pick up, which of course we saw take place in the first quarter of April, we believe this is an exclusive opportunity for a generation to tilt and capture demand, giving more consumers to the platform.
The most productive way to get a visitor back to us is to use us in the first place. So we leveraged our strength, our monetary strength, and our marketing strength to take the lead. We’ve done it before. Last year, saw us increase our marketing spend compared to our gross bookings in the first quarter and in the current one, and then we deleveraging in the third quarter, we saw a strong summer. This year, we continue to think that we will necessarily lean in and reduce our marketing expenses compared to our gross bookings.
Q1, it’s not a big surprise. We said we would be stable, we thought about the returns on investment, they are positive. So, we didn’t expect the first quarter to be the quarter where we would see all the calls coming back. We think it’s more about Q2 and Q3 like last year. So the plans haven’t changed.
Kevin Kopelman
How has been the reaction of the – has been the reaction of the new television in the United States with [indistinguishable]?
Glenn Fogel
We’re thrilled with that. We love the countryside. I think a lot of the other people we communicate with love the campaign. We saw smart activity on social media around the launch, around the Super Bowl. We also discovered smart tracking. Above all, for us, we have noticed a great accumulation of spontaneous notoriety in the United States in Booking. com. So, we see it. And of course, we’re still doing well in the U. S. And we have to bring some of that good fortune to the campaign, even if it’s just the beginning. We are very happy with this campaign. We think he has legs and the first signs for us are smart.
Kevin Kopelman
How would you describe the competitive environment at Google given the recovery of the markets, its competition also this activity?How does this happen?
david goulden
Ouais. Eh well, it’s competitive. That’s how I describe it. I’ve never been anything, but competitive in this. Listen, every day, each and every one, we all faint and look for those customers. So we look at what we think we can offer. We use all the science we can to make sure we get the right investment for the right piece and we perceive that unfortunately, and nothing can be done about it, it’s a competitive world and each and every one is coming out. a [it’s a little bit] [ph] and there’s a lot [game theory] [ph], how much are you bidding, what will happen or not?
We have done very well in more than 20 years: 20 years in this sector. And Google and all the other people who are there, whether it’s Google or our other friends, they’ve all tried to get a higher percentage of the pie in their business and we can see how to develop the products, we did very well, no matter the change, we reacted well, we adjusted well, and sometimes we’ve done better because of those changes. So I guess we’ll keep going because we can paint hard, and I think we’re going to do well.
Kevin Kopelman
It is fair to say that there have also been many adjustments.
Glenn Fogel
Yes. There has been.
Kevin Kopelman
A kind of domain that you would possibly not communicate as much about, however, I know you are active on this associated B2B side, and since it is, your competitor communicates more about it and this has been a precedent there, what is the booking strategy and also how does Getaroom have compatibility with the recent acquisition?
Glenn Fogel
So, it’s been part of the business from the beginning. I mean, we called it associate marketing before the turn of the century when [indistinguishable] a line of value and, you know, in 1999, there was associated marketing out there. And we can also call them strategic components because we are [indistinguishable]. There are consumers: potential consumers on other sites. And if it doesn’t, will someone else fill that position and spend there or not?That’s the overall strategy.
So, basically, it’s a way to have customers. Just some other way to get them to have a safe price. Price notes can be [rev share] [ph]. There may be other tactics to do it or not. And everything is evident. You work with an airline. You provide hotels for this. It’s simple and obvious where you’re going. So, not so apparent, you know, [indistinguishable] I know you put [something in] [ph] into nothing and buy a traveler. God knows why they do it, yet do it, and everything else.
Banks are big on this kind of thing. Many other tactics to do it. We believe that if you find a way that generates a smart return on investment, you deserve to do it. Of course, the return on investment is not only the amount: the rate of – or individual transactions will develop, because very rarely some of those [partners] [ph] need to adapt very complex things. And you look at what the call is, and you don’t know if I can do that.
Others do, because you think the volume will be worth it or not. And in fact it is much less risky because you do not put logo marketing first, for example, you will be paid when you make money. They pay you and you pay them
We bought Getaroom, because Getaroom was a major player in the area with wonderful contracts with some, you know, some of the best retail regions that we were also looking for to be a part of our thing, and they have a wonderful generation and there are some smart ones. things, which suits the low price line. So we’ve had a number of other corporations that have the strategic component.
We have a value line. And then there’s a company called Rocketmiles, which is completely B2B, [indistinguishable] has its own and with Rocketmiles there, we Booking. com there. Yes. Getaroom’s is oriented towards the United States, it is almost all American companies. under a value line. I’m very satisfied with what’s going on there. Good control and I can’t say enough about the team there.
Kevin Kopelman
Let’s communicate about margins. We talk about advertising, but if we take a look at all of its airlines, it has about $4 billion a year between and G.
Glenn Fogel
Of course. So if there are transactions or [interest charges] [ph], then daylight saving time opposes G
Therefore, normalized, we can expand the market faster, we can take credit for this line. We also continue to look for possible efficiencies there. So, in the long run, don’t expect a massive replacement in the shape of the source. of income there, cutting transaction expenses.
Kevin Kopelman
It is ok. Capital allocation, how do you compare the purchases you have taken on and also the possible acquisitions?And then how do you see the developing inputs you have from your commercial business where you gather cash upfront?Is this something you want to be completely opposite to or does it fund the business?
Glenn Fogel
Of course. Therefore, purchases, unlike acquisitions, are not mutually exclusive and we have demonstrated this recently. We just closed an acquisition at the end of last year. [Indistinguishable], we talked about it. We plan to finish one this year. Etraveli and then, of course, we also started percentage buybacks earlier this year. So we have the opportunity to do both.
Our review of capital allocation has changed. The first priority for currencies is to invest in the business. This can only be done through biological investments. This may involve only partnerships or mergers and acquisitions. And beyond that, we continue to return excess coins to shareholders that we learned through percentage buybacks.
Kevin, in relation to your last question, the [indistinguishable] balances will accrue as invoices accumulated in the company. We see this as other people’s coins. I mean, in the end, we will have to give it to the hotel partners in exchange for the coins that arrived here with our reservation. So we’ve been looking at this balance carefully, but we see it as other people’s coins. and not as a source of coin buybacks. We’ll think about that.
Kevin Kopelman
Okay, understood. Well, with that, I think we would possibly have time [Technical difficulty]
Q&A session
Q – Unidentified Analyst
Kevin, two other queries. The first one was just as we saw it last summer, can you communicate about any of the sources and call separately?Obviously, there are limitations of sources, I see it when we look at the costs of things, you know, until next year?And then how do you think the call will behave after this summer?And then the query at the moment that I had was about carpooling, moving, [indistinguishable] things like that. Somehow, this turns out to have a good compatibility with your style in terms of cars in remote places. It corresponds to housing choice, that kind of thing. Is it something given your renting wisdom and all that, is it an area you’d like to evolve into at some point?
Glenn Fogel
So I’m going to start with moment one because, relatively, it’s the simplest idea to tackle. But we will seek to find an offer that can satisfy the desires of our consumers. to fit in, there are other tactics to get things done in terms of entering your stock into our formula and all sorts of things. be suitable and that’s the most productive thing I can say with anything.
The time beyond, you know, peak summer and autumn, etc. , etc. , my long-term crystal ball has been murky since 2000, and it doesn’t actually work well. So the basic thing I’m saying is that all I know is that travel will continue to grow in the long run, slightly above global GDP. Our task is not to worry too much about the volatility and quantity of this month, this quarter, the next quarter to continue to create a greater product for both sides of this market, for consumers who travel and are supplier partners so that they can do their business better.
And if we continue to succeed and improve things for either party through price for either party, we will win by taking an ever-increasing percentage of what is sure to be a developing market. Absolutely,It’s been going on forever. People will need to travel. They still have it. World War II ends and a few years later, the United States is all over Europe. It’s going to happen, pandemics are ending, other people need to travel. Our task is to get the most out of what we can.
I have little confidence and I can say a bigger yes than anyone else in this room or any economist in saying precisely how the fourth quarter is going to end, and I’m not going to try. Instead, what I’ll continue to do is make sure our team has worked on the vital things to provide greater services, better products, and that’s how we’re going to win in the long run.
Kevin Kopelman
Super. Thank you Glenn. Thank you David. Thank you all.
Glenn Fogel
Thanks.