Topics>>KEYNOTE PANEL - THE BIG BOYS COME OUT TO PLAY!

KEYNOTE PANEL - THE BIG BOYS COME OUT TO PLAY!

+

Tags:

  1. New Zealand2:25, 5:55
  2. Middle East3:05, 10:16
  3. China Fund26:53
  4. Hong Kong2:35
  5. Paul Bill18:28
  6. Paul Price59:48
  7. oil price13:14
  8. stock markets12:06
  9. tax returns20:23
  10. vacation rentals5:34, 18:50, 24:21
Tue, 9 Jun 2015|

Adrian Currie, SVP Corporate Development, Priceline Group, John Guscic, Managing Director, Webjet, Dan Lynn, VP APAC, HomeAway have a panel discussion on the current Asian Travel market and future investment.

+

Automatically Generated Transcript (may not be 100% accurate)

I. If we could just go through how to explain the URL would come designers very basic strategy what you're doing reason right now. To sir Adrian Kari I've been with the price group of companies there for thirteen years most of that time. As we focus on the international brands which is a booking dot com or Godot rental cars dot com. Our business also has three other main branch offices priceline.com. In the US. Kayak. And open table. People think about Priceline has as an acquisitive company and indeed five of those brands we talked about overall global trade. Through emanate. But actually aren't born. Strategy is actually to grow RR baron brands organically. And they keep them as independent runs within the group. So then 99% think you think about how we gonna credit frantically day booking dot com as an example. Now that was acquired around 20042005. For a relatively small amount of money which is now obviously a huge business of the main rally that's been added has been the organic growth since the acquisition. And obviously with the more recent ones that Skype know the table the strategies related to growth as aggressively. And internationally. In terms of further. Are Asian focus. All of our brands operate in Asia for the greater or lesser extent. Obviously of those six brands that mentioned the go there. Is based here in southeast Asia inside for the most Asian brands we have. An intern as a chairman and investments we also have a a small stake. Within C trip which is the largest online travel agent in China. Which we invested 500 million dollars to do that last year which is also part of an enhanced commercial agreement. But he. Like it John new. Shop or financial music come managing director of WebJay. Adrian talked about small stake Citron. 500 million which were volatile market curve. My business. And we're clearly ninety day in the straight you know. And New Zealand and we have. Which operates primarily in Singapore. And Hong Kong will start right Australian market as well. Where it roughly you those businesses turnaround turnover over a billion dollars Australian. And then we had their day they believe business which is still in online trail. But it's not term focus broke through the consumers like us to the travel trade fair and we have an organic startup placed you know major divide the list fair and it operates in the Middle East North Africa primarily. Where we made an acquisition. Or business talk some hotels. Headquartered in part on my Yorker. Again. Is in the baby. Face or primarily selling hotels. The scandinavians wanted to move to warmer climate during the year up summer. So our business some were factors that Adrian has described it third that the biggest component of our businesses whether Joe which we starlet. Where. Has been fuelled by organic growth over a sixty year period. A lot of hotels rent basically in her. It divides organic staff. It's going well. And then we had two positions won is usage brand which I spoke about. N also some hotels so until work. 2012. We have made acquisitions for as they take years. About systems every vehicle getting through webcam for it. Am morning everyone and down hire new home way to business here in Asia Pacific Anaheim way. Is a US Austin based ad company focused on the vacation rental marketplace. So we're the world's biggest vacation rental provider how we generate bookings of about twelve billion A year US dollars. With a very heavy weighting. All around the world we're quite international business. A large number of businesses operating in Europe. And then over over the last few years number businesses. In this region as well and I think a little differently we from the very beginning ten years ago when the company was formed. Look for yen as an acquisition will add strategy. So the founders plan out and raised. Is a large volume of cash. We view that a a lot of interesting vacation rental website in individual countries. At the web marketing to travellers within those countries in the wasn't. A global aggregation feeds and that's whether the idea of Waco wrap itself. Away went out from the very beginning and port the number one or number two players in most markets around the world established US. It bought a website called PR you know they port au website vacation rentals dot com. In Europe they've bought owners direct act in the UK cable and holidays in France if a Apatow and fanciful they would affect Germany. Add that topical in Spain. Alluded temple Bardem Brazil and that more recently in this part of the world court stays in Australia. Welcome back to New Zealand and travel on off here in Singapore. So it in the company's DNA to do by its capped by and that sort of aggregate. That philosophy behind that is that unlike in the hotel space where most Italians are not. So profit maximising. Our business operators who will happily work with. Looking to get credit is another argument web jet to get 10% of the argument Expedia to get 5% of that volume. China associated get another 2% of that volume and will keep on adding what distribution channels because a ticket to maximise revenue. For many baron assert individual homeowners who. Are much more interested in making a small amount of money but that having a relatively simple way of managing their business at one work with multiple absent self. It was part of value for users at least that fight going and buying anything more established businesses ensure that we have you except the tree that is very. Hi Fred you're not replicate. And by then aggregating enter as well Paul we can bring more demand add more value. To those openness and with cross border traffic that's been a lot of lost it followed over over that exists. John what happened at 33. What will what was a big change was so. Well I guess. If you think about your business here look at. The underlying rate of growth. Wind Europe Australia and the other large supplier in des. You know very small part. You're looking flow. Put forward initiatives and opportunities we fuel. The growth of the business. So provide reasons we we start looking roughly about 2011. At a farewell to do so to get a deal crossed tight on what we have quite the G. Its business through third grade entree into the earth the Asian travel markets. And African acquisition. If there was actually a start up. We did acquire things by standard Dubai. Where news. What that business has endeavoured to do is to build a different maybe strategy. What the other guys. In the existing backer providing hotels. To travel intermediaries so. A finance their words. I don't into the group. By appears clear that we use technology to deliver a more efficient outcome. Outpace. It's a combination of the bottle supplier location hotel strategy where we get. At large number of partners back gate a bit hotel inventory. As well let's correctly contract hotels ourselves. So my concern. Would be a margin play we've. Gives an opportunity to beat a comprehensive that we would beat as a single source supplier for the hotel market so what that part of our business. Which. You know wheat first pilot training in February 2000 there's tailor our number of well because. We sold a whopping 16000 dollars a month of February 2000 that same. In the illustrate in dollar terms that's now over run rate greater than a hundred million from a start to the years ago. That's profitable it's current incarnation. So for those reasons. We look. Had we add to what we've garden and a a look at some wanted to what that was described the primary way we see. The ability for us to fuel our growth in the database side is through acquisitions. There yes. We've. Maybe one with some hotels which is based in Europe or actively looking at the moment we're actively looking you know Asia for an acquisition. So we would then back out acquisitions. Continued into. For all about hotel inventory service contract strategy and the ability to. Yep rooms would be consolidated. But we were rough ride individual brands in the respective markets that. You know we've acquired business will start up so. What I'd tolls will continue to be outlet Middle East and Africa sub hotels beer brands in Europe. Whatever we acquire either Asia or North America or if we double down in Europe will continue to operate as independent brands within. And overall strategy of consolidating our hotel on. All you guys ever Internet companies what are the macroeconomic. That. Shape or strategies native. Big question. There city depression not a hack an antenna and a short term. I think they're there of the world there's no as a very interesting place of the moment might come of it influences range of well. For Vista though that the kind of crisis around the world have seven or eight years ago. Were still been some of those affect how. But I think in general. Most markets around the world. Are optimistic for the US I think it's it's pretty positive I think Europe is positive in the fact nothing terrible is happening on the greatest potential. I think in this part of the world obvious that the that the kind of big driver is China and whilst there. And ever want worried that the Chinese growth is coming down it's still going to be 7% which is pretty impressive for. I think Japan. Is this is struggling a bit let you know particularly when it increased consumption tax that's kind of maybe that the market pretty flat there as a as an economy. But I think in periods is beginning to the positive I think with the change of government. We're. I think the growth rates and forms of life. Quite positive so I think the underlying position certainly if you reply back six or seven years ago. As the world is. Place and if you look. From our point of view in terms of we're talking about mergers and acquisitions. If you look at the stock markets around the world. S&P 500 in US is at record level. The Chinese Chinese high end for the fall off. So there's there's obviously a lot of positive here. So that whole kind of reflects into the market as a whole that we look at that the tourism industry and I think the tourism industries even. Is it even more reason people so that. Obviously huge industry with its one trillion or one point five trillion won over two huge industry. And I think in most markets it grows two point GDP I think. For Farrar businesses. I think that's that's a huge positive. And in Asia have said that the big economies you've got a current focus on those would make your southeast Asia which has a negative growth is six. Starting where we say is so where we're kind of work happy weather for the troubled markets where the economy. But I think there's the so many unknowns out but now with a plan and work on all the centrality. With. But quantitative easing of all printing money that's happened around the world with the oscillator of the oil price is hugely high Lincoln way. I think you've got to be you know very adaptable to whatever the situation. You've seen the but I think. Points. Virgin touched Barclays is most important one which is inner. Voice their number one market that. It's going to. Positive growth for the vast majority the next fifty years in this region. Travel will grow as likely suggested double B on what the unlikely right. That's been a worldwide phenomenon that's driven the travel business. But last twenty years and that shows no signs of the baby even in. Even in Europe. Which has heard or above the growth of let's have 1% last five or six years travel hasn't gone backwards in that market. So all those reasons you know you're attracted. To fast growing economies which we're clearly sitting in the world. Payne. This session here in Singapore. Where you don't expect say trouble outperform. The vast majority of industries because so aspiration but anybody. As player climbed well either. And as they become. More affluent. Travel becomes something that Serb people spiked to a as a reserve. Generals well that's very wide for our industry and the opportunities that presents a list whether it's the combination side vocation rental Laura. A monopoly here blocking side they are great opportunities for well back on the underlying growth. In this. Market. An adult does that hurt. In addition to other post operative travel and most about is heavily weighted put on line with exceptions to meal need to keep his job and you heard that the migration from offline to online. Has been going on for 1020 years but in various. Parts of the world is still very early stage I'm mean. That there is still online site offline or online migration happening. In the US and Scandinavia and those put that in most you know the furthest along at markets I think if you. If you take you. Age historians are breaking out into different champs and you know within such data start breaking out into different countries we've got some at a relatively far along you got some of the very early stages you've got some at a relatively far along him. Like McCain being adopted guidelines or India is quite far long flight booking online with the LCC's push very hard. The other markets that are way behind on flight sim we have other markets India little behind in amateur hotel is over time. Am and other market facing portal we're further along lesson was there's there's all these sort of tail winds that will help support investment disease and bus and an ABC is at in this particular part. Well and we we heard that overtook their Asian consumers what they're doing in their baby with mobile and and that original desire to travel houses. This must drive your practice strategies. What do you look for. Marketing. Dieters got hard question to answer because we're we've we don't give any forward looking kind some panic because the do we talk about. Things we've done and I guess its for the field in the audience that kind of pieced together what we've done. Where we go forward women now. If you take for example of the kind acquisitions as a couple years ago there was a number of things attractiveness. Turn to buying that business. You know the mega search model was interesting. But but I think it's it's it's it's mobile proposition was was really really strong and continues through. And if if that was a business that was had no investment. That we would have looked fit through the balance of peace where. Bring that business into our portfolio they continue to run independently. And risk trying. Growing from businesses organically but we do make sure that we share best practice of knowledge sharing with our brands. So you know booking dot com or go the price cycle weren't run from five mobile. And vice Versa so I think. Who will be highly unusual to see something that didn't have some kind of element of mobile in any forward looking. If it because that's that's the way the market is. Introduced a booking dot com could learn from the mobile for these kayaks postal. You use of the book their went up when you. Thank you that I think the daily daily car loans or loans on the here thank you so there's much as booking dot com is amazing business. There's also amazing things over the last 1015. There's still lots of things with. OK anyone has any questions to put hander Ryan will come with the microphone will will get you into jump in. We have two different business models but which one. Do you feel like. Having of his papers a lot of well Avian or. Forget I think our preferred downside size is there is business description that clearly visible gold. Paul Bill was dot com is part of the conduct commerce and happy to Clark I think maybe. Given that you've been in that sector longer than we. It's OK investing described. I think down. So. The original concept we're at it this place and be done we don't try way that we also think we. We have to remember that vacation rentals around years. Yes. For an efficient marketplace Japan efficient online marketplace Japan tabs at. It's is relatively new fine but you know. Indian market towns in Europe were I think what people's homes and they offered fewer bed upstairs and breakfast in the morning and it's not terribly different. Today it really slip into a marketplace that looks like so that's not on the it's not something that that its new. At a terribly Euro it's just been done better has it done before. But I think if if we think about about Abbott's us and as a very healthy part of it. Sixty plus percent of that it did not hit its patents and individual loan over current. At typically a second home case am choosing to monetise that when that eating themselves. At where you work with that owner is very different from the way it worked with professionally managed. Said expectation was that the map by property managers saw an output helps at. Incentives. The carrots and sticks have to use to make marketplace work efficiently at very different one of the reasons why. In much of the world we offer a variety of business we offer a performance based business model which at its low risk to enter. But some people prefer the certainty of knowing how much it is bottom up subscription based model I think it's one of the very different things about. This tax returns. Bonuses eight tally through it with more gently towards vertical model. So I think they are very different sorts of marketplaces to operate because you have to figure out what that makes that marketplace operate efficiently yeah. It's it's not as easy just to go OK what's the big surprise that argument that's what happens going. As a practical it was my previous time operating hotels. Hotel marketplace. Like. And. Danny was talking about her that the oil you're his suppliers his. Vacation home rental providers. We hear quite a lot of times not much made us much but in Europe that bubble hotels are worried about what booking dot com is doing. Had just want that eight. Views. Philly who have a specific. My habit and others about the there's usery that they pension. I think if it is really interesting place and I think for market here with their view they'll Hoover. Grab taxi alliance. I think. We've been gopac's as the victor very capable. You know were in that space as well we have. If that strategy through the fair highway which is really and a growing category in ten years added beard company. The this rap you know. Part of the market in terms of renting out rooms term. We we've we've approached statement on our side people. Do what they came from profit but Harmon's holiday end child. All the different things like myself hate. People looking. For I think we've done differently and why so because become a background. Where everything is online book for portable real time verbal Thursday block tumbled. It is there's that. Booking is not wait 24 hours the end to get back to say yes actually you know upward shift in this. Fifty day. You know we we now listed you know terminate our property. Which sharp fall instant palpable and that's the way that was what we're going we think for web market it's gonna get well. Well disagree though. Some group. Property that the analyst and point out most of those 280000 properties that we invest. And we have a dedicated side we have gone down mainly through professionally managed organisation by the managing number properties representation can. Barley up. For an announcement but. But we're going where we're now beginning to plan and work have together as independent. They've managed properties on the way to go as a marketer banner so again that same market but if it's from a slide back because of Zulu less than it is instantly book wouldn't. Level and that's going to be a lot harder. Two to do. You say. So I think going to be fascinating market so look out over 510 years it is a big category whether it home away. Brand with their favour sample. Of this of that well. I think that there is definitely. Does that serve as the market has been that there percent but I think there's more demand that the people do want to spend differ by private think. Sometimes I wanna turn times they've made they've got a big group people for their location talked. So with instant. Bookings outlook after that the host sort of Kevin B and fully developed have a very big threat to make sure people coming in. Trustworthy because you people get rated we do the same thing because things things bookings that must be the barrier. My wrong bet that it made my perception. Is there's bookings on their vacation rentals. Is tricky because you both the trust each other as opposed to a faster efforts opinion and vice Versa out how he had. Come over the overcome. Boy got 209000 products for a perfectly happy with that model. I think if this earth as a man who was like that model found that lead analyst on why not just come on there was. But you know we like OK. Now I'm sure down one point confirm that they the manner incidents happen. Relatives of the bookings made as a very very reason. We have by talk speaker speaking in London recently and he was talking about the the massive amounts of data and insight is getting five that you provide acquisition. With open table you must be expanding your reach or what the consumer can do when you're on trip. And is a much debate of copper inside customers like. That hasn't and that's a good question knowing it's going back to what I said in the beginning when the number one focus for our brand is for them to be independent in. And so for growth plan that best they can fork out. And as a number of things that they're open table is a fantastic business. Faster work there really quite big thing now assess the scale out its its its its customer base of fresh from basically in the works for. The thirty that. In then the world of Smartphones allow one of the key things they have developed was. Their ability to to fit the transaction payment for the for the preservation so Palin open table with the key thing. And the other big thing is it fits very US centric it has cited the UK Germany Japan. But as just a huge international opportunity. So far far away the biggest thing in the plan for open table with just continues to grow and do they think. Clearly it along the way you know there's you know we have millions of people every day. They're staying accommodations but that's obviously booking dot com for going to fourth through fifth price. People who do a lot of clients averse hire fast. So there is an opportunity to be begin to cross promote. The fact hey you in this destination. Here is that he's a great time here at greater risk. But I think that's that's of that secondly for the the first per first purposes open table have to fill. Huge business in China Fund and let me just the second thing is the second here at their example our view is that there. Everybody would would say we've got this frontal rental car is again fantastic difference based in Manchester. At you must get huge traffic for that just more or less of and it's fair to say that actually is a goodly because we know where people saying it had held the base of the cross promote might. That has been a positive impact from this for the biggest impact by far of last five years of development. Has been his own organic strategy going into debt so. Maybe we take a slightly different approach to do that should provide an example that gay so you know there's a very very high degree of independent. Amongst our plan. And then its second overcome. That sharing best practice commercial it. We're not the insight in particular for the data. Having I think over time that's something that. Gets a benefit. Could your ability to send text messaging must be. Incredible. Scene work already and what about the positive market if you looked at Apple's. Not your area. We're gonna mean. We will look at all we've all aspects of the health of the space between here we've done. Different files. In terms of fire with fire by people that died. It's not something that. Been particularly for industry must have to do anything in emanated from its commercial. And that's what. Right am. I have EC met research. Working competitive model as a fit nicely forward some of the Bora from more to. Go towards a had additive work together more Ghent. The suspect fuel is a fifth of the deathly you look forward even welcome development to inadvertently you advertise and whether search. I'd quite like budget and fair Oakland. I'm gonna happen I think her. Around but I think there's no. Within within the space of all sorts of different models not be OK the same a lot of investors top scientists say twelve. I think it is fair to say that that over recent times there has been certain you know closer alignment to what those things were. And particularly with that but the matter search site for district revised higher you know we've with direct booking or. Because there particularly. If if you wanted to keep custody within your own experience I think every car that F. And to fight with. This incredibly important so staffing. Then the matters put direct booking on our website which doesn't make them look more like it here. As a Ghana yesterday from intent you. Which has which has got a problem we face of these is putting prices. From competitors underneath your own price of zero point five C 8 I think filing. The other way around that can create. The matters but I think ultimately. Though the site small businesses that will do well number one want them look after their customers the best. And number so have some kind of different check back. We've got great content great customer experience for prices whatever is you have to be different than. I would back that which is that Nike's. Neither of those truly feuding owners traditional models are going to win obsolete tool that I think there. There are plenty of OTA service WebJay Expedia offers and the flight space who threw. The ease and simplicity of being able to complete the transaction will place by the information they provide by being able to. Seamlessly add hotel listings as a really compelling travel value proposition particularly on mobile player. Matter struck for a while has only now really tight think. There are plenty of other scenarios that maybe operating in the market Weathers. Previous quarter of OTA competitors. So you're pretty sparse. Content on the Otis and maybe matter really thrives in those markets have good time. Until annuities get their act together and get complete coverage of the tree so it's there was I think noisy period. Over the last five years when better sort of was in the ascendancy. Because the gaps in no T eight were apparent and there was no. There was less investment annuity side for what is gonna make. This is a unique compelling and sticky thing for travel to stick with. And because mobile has resigned as an associate of uptake game I think the balance shifting back but. Fired up. C Penney vote gays flight which is right and eating plenty of flight patterns right I think you'll they'll continue to be very fluid. We sneer Bibby will that they keep talking about getting into the tormented his market do you feel the same opportunity for itself. Am having a very limited way we don't I don't think you'll ever be quarter to what we fought we want to do but we do feel. Like that. That wanted to disadvantages. Relative to a hotel vacation rentals is when you get. Having just flip through an all buying for the perhaps tells you what do what if you rather than the expertise of the concierge. So if you as a royalty digital plan. So in that pack experiences. Wanted in trip. Answer not. During the book Britain's what do you want to rent trip where loading up arrow Lazard local and awful lot of stuff into the -- spare us until we have here we've. As a default sort of content as a destination where part owner of broker reports a report that information then so there's a 547 information. But we think we can do an alot more then let owners of the Adam of that that so that has constantly updated. Certain information through the experience. And once you have that you can also insulting back interesting integration so rapidly guy we plugged into itself from within that experience its very easy to get local past service. Tie into others but I think in staccato. So it's a cart service in the US. And that lets you order that. Visit the food I want to be infringement all right so you know we can build more of those integration but we've but that's. That's less about a big revenue stream for us that's more about helping to for just sort of close whenever remaining gap exists between hotel it's been used in the central and and bustier. Bill will take time. If you as a business do helped our suppliers to the hotels. Do better job on trips and on what's on the web wanna customers on trip is traditionally though concierge we would help put restaurants. Find trips will activities and it seems that mobile devices is is overtaking that. Guaranteeing you access to venture with the help with that do you think as a white label the visit as a as a. Big gap now it is something that's another negotiator looking out which is coming off on a white label basis. That was activities model I think it's interesting I think it's its charismatic and awful long time for hoteliers to adopt because. Does make a reasonable ballot money back putting people in the direction of preference votes on the particularly. Open marketplaces. You know it's fat out of incentivised bias within that answer I think available after takeoff but I think. Over time traffic preference and unbiased source well over way in your Pacific rim mortars play out trip advisors. When the wind in destination. So I think there's there's an opportunity for a tells us OK you know. I can offer summit some buyers that it is that make M Exxon commissions on. Am as an alternative to that adds that the more reflects. Minute tell a letter to bog standard no differentiation. But you're presuming you've picked hotels. Because it means something to them. And so I think the target men sort of recommended. It's day is a set of restaurants that fit with our brand image or you know what we fought we think our travellers prefer is a set of activities effect that grounded me. I think that's a great opportunity for some. If any thoughts on that on the way potential white label product. OK and how to receive your questions the text. Yes secret. Be simply ask. What do reservations via the deeper investment. If you can expand on that flat. Yeah. And in that it so that it fits most the slight surprise anybody in the through. To turn the fastest growing tourism market and biggest tourism market and a few years. Is this the it is China's. At and so were you. About you know. The addition of the relation of particular problem. Years. The number one right here in China via our long life have got great brand recognition of our food service. So about three years ago. We get a commercial real feature. Which was soon where. For all our outbound travellers. To basically off of the product of the overbooking or for that. Six and the bad comedy certainly have combined. Around the world. Of those Chinese travellers which you which are literally travelling forward places it's not it's not this will save it about these data. Europe McInturff. Friendly. So there was a real quick commercial Russian now so to match the demands that secret thing. China if I was to the international cup fifth. That was a relatively straight forward deal that. And what we saw was that there. There was lots of opportunities for the group that deal for both so the year ago we we kind of a hands that commercial relationship. And a zone as a kind of come mistaken around the third that make the commitment that time we've we've we believe that having yeah investment into. We've would take that relations with the next level so that they've invested half a billion dollars. We have the right by 10% of the stock so. That that relationship discussions floods have spent the outbound market Chinese travellers is cities is growing hugely. And we benefit a par with that number one brand in China this non exclusive relationship so we've we have lots of other partners. In China will because this outbound trend is that you. And so we work with those guys will proceed with their you know we've we've got that special relationship we've got an investment. And he usually India. It's worthwhile place to invest the moment order. As that's a really good question and add. I think. Everybody you know has really been articles about China verses in yeah I think it's this follows huge convinced I think India has huge potential. Fidelity if you if you look at the online troubles that and you look at. What investors say about the market of the moment. You know spend. The biggest weight gain in China's secret which has about ten billion dollar capitalisation. Number two's Q now returns that six billion dollar pension. And many other players likely long into new ritual kind of just sold one billion. Market caps have become an investment in that in recognised by investors that. When he 25 billion. Dollar out of the public companies offering market value look at though the Indian market whilst the number two and number three young for a fifth of the five. May matter as a market cap of less than a so there's just the the huge difference in the way the people looking those markets and whether it's. Whether it's structural whether it's actually that they are on much bigger opportunity entirely. But of the of the moment that they have risen it was a huge gap. And even within our businesses and our international compact that they're unsure nursing a much bigger opportunity within China itself. Found within this has not just local players in that internationally this thing. The travellers spend. From China percent growth. Factor may I think India has huge potential of look at the some sort of scale. Seven clinical Linda. The the Indian market is one that we spent the time looking at number of years ago. I think our agents hit the nail on the head that. The reason that the market capitalisation. For the big players here is so low. Is the competitive dynamic. Is unlike any other market. Weird. A market like China. They're up periods. Of irrational exuberance when it comes to the margin. The pricing they would like to work demonstrate to the market. India that appears to be an everyday phenomenon. Search. And a market where you make the point like my trip. Like my trips worth about two billion dollars. I'm not sure expect profitable. You know underlying service for any of its entire the year within its entire existence. About period of profitability that certainly does have sustained. Period profitability. Does very hard to value. And organisations. In a context where the bucket. Drives no economic benefit the shareholders rights spread economic benefits the consumer. Zeman died consumers getting. Prices are unsustainable. If they weren't serious investors who want continues to maintain a presence of the so for those reasons that have for mayor very unattractive market. To enter into a wait until. They recognised name and sustainable business model. You need a degree of loyalty from your customers are rewarded for the investments you made a venue recycle what process. To grow the business of the moment and a half that equation. Is being implemented. As a direct consequence. You don't have valuable. Infrastructure investment in we live up place. I think I agree and disagree with some work done so I think that our. It's certainly the case that Indian cricket has never been sustained success of ability and see trip until very recently what's might help be profitable. In its last two quarters it lost thirty plus 1000020 you know. Tune I think is everything maybe what I've seen it at you know that's what we've lost hundred or so. Tune outlook of the business lost 200 million in the last quarter three million last year as the market cap six point so. I still be nice I think there's still some that it's not just the I guess they think China is a hugely competitive. Pan web maybe Euro momentarily calmed down when it does not it goes really absent an act along. It's because everyone know as the site writes that. Am asylum in India feel warm. It's actually really not a matter India won't be as attractive. As China is today. At least twenty years maybe ten months from now. Which says somebody should be getting that now we're beginning to make those investments now sometimes like we can't public companies to do because. Actually you know ten years not ten years anymore it's six or seven years self you know. Met maybe maybe someone around the table and make that investment and that our successor will reap the benefit OK but. Am. I think ten to twenty years from now India looks just as attractive as it's China that's now the market caps of probably just does. Justice. Attractive. Because the fundamentals of the market up strong. Over that long term period I think I think I agree about the kind of profitability like if you look at the published volley. That's leadership I think is around the field of seventy within the non. You know along the kind of half up again for the government in. So that's a large number then make market data published a number if you look at the revenue were back at a very small bonus. Of hotel room nights of the ever put on par with the five pieces closer. So the flight Internet videos has had a pop at just part of make a lot of money out of just selling a lot of flight tickets. If that would help it get there and then. Earning a certain with hotels you know all the main board maintains around the world investing heavily in. Hotel through builds. In ended just as much of the road. For fifth on the other thing that. For. Standard term if you have the guest house phenomena. Do you think that it uses to distributor model. But it doesn't assert as a local player called guest house of the curve is going after their kids out of aren't going after that and it's it's certainly interesting mean we've I guess we fundamentally think of the vacation homes it's about having the space in the privacy. Feed you in your family however you define your family term deserve. Beat together on a trip at the new guesthouse phenomena is slightly different and often those. As a share kitchen and multiple units by it's it's pretty similar site video really like it. I have the same fear that. Others argue about when does that market tick you know really move aggressively on line but we still too early in Hong offline or online migration. And because a lot of a lot of that business today is is offline travel agents. Allah that business people going to take places every year as file their applications. So it ill take awhile to. Mark but it's a similar to our guests. But just come back to China timing is interesting in the most recently published results of the cunard and their faith. Maybe on tape. That more than half a marine life is not just more than half a traffic more than half their room nights performance. Take him more than half their really notable moment in China. Because lottery. It in China within C trip in Q now I think potentially long as well is put on like half of the hotel in so system is very very bad. But its debut the mobile element of key. How fit in the in the trip is less so and the fact their organic. Sustainable businesses. We McKesson questions from the audience. C'mon particles and that could last night surely. If you can introduce yourself. Our my name is obviously perturbed from Cox and kings in India. Harm much I'll offer function half what it just talking about a deal but India. Is a function of thirty feet of exchange. When you were translated in tool. US dollars they get a piece that third transaction fifty PP is also much lower. But those servers. The fact that the review sixty of these to the US dollar. And R&B is different. Matter. For forward. Icann. And so from my perspective it doesn't have a huge impact because I think you're always looking. Well we're really it's always been looking for puts a business that over the mid term typically profitable so right. And if if if currency is weak in any particular time that that tens of costs. But both your revenue and your cost will simply be committed in knowledge of that. But amid our business is very happy to features domestic figures and other destinations that the that we focus on ten destinations. Citizens back country know about. Am so jackets now wouldn't it be a bit concerned because you are possible operating team with lower cost of marketing. A similar lower as well as a revenue itself. We don't think you can plan too much based. Currency fluctuations because we've. We have no idea which way. I think India also has a different phenomena which is. A lot about our markets with strong correlation between departures from the country in remarked consumed outside the country. It give us westward correlation between those two factors. Cause the friends and relatives that that exist for a lot of people when they're actually. Travel. So well recently the market does Hudson. Peculiarities as to the exchange rate in many markets we operate. Exchange rate really dictates. Way going to spend your money as opposed whether or not going to spend money. So the option is domestic versus international they still is. At. The increasing trend to. Consumer hotel room will consume a combination of some description this just where you spend so for example of Australia. In the last. Twelve months straight currencies appreciated more than 20%. Against the US dollar. Outbound travel is still growing five times right domestic travel. And our have trouble all medicines people would shift their preference so markets in general but for example of the spread is going to Japan. It's up 40% this year compared to a large. Straight continued ago pile on debt settlement so that they skewed against. US. Ever cross 22 ways it doesn't change pencil lead people to travel in you know. Well one thing we had their session yesterday about China and India and big difference might Michael that I had a very sophisticated. Payment mechanisms coming online with their we chatter and the payment wallet. And India doesn't does that impact your ability to. Payment by mobile online does that impact your investment strategies. If they. Does but the predominant model that the we have bases around credit card guaranteed for bookings or for taking a payment booking through credit. And so where it is that less relevant than we are what kind of local rising in some markets to assume some local payment model. Five kind of lessen factored growth I think probably within the within the domestic markets. In here and they cannot lower staff have severe common day. Maybe second interpreted that this is probably critical you've got that local. A cash payment of the corner shop and fifth we've. Frozen since last significant seven. But the fact systems in general. Critical when confidence. That the transaction. Is is is going to be completed on by upside equation the consumers' quality we provide service. You know call will be days of web jerk your 2000 it's. Those great concern about putting credit card down there and then pressing the apply now by. And so additionally. The transactions were quite well environment so they've if you look at the growth of our business was initially. Domestic particularly though that was up there is typically for a wide dol now. Announced as the map shows there's factors consume yet more sophisticated. And more comfortable with what they've doing is seeing greater propensity. To purchase large amounts average book value continues. The increase issues. But always issue in emerging markets with shifting online. Takes time of a lot of health. Has been some leapfrogging off of the payment mechanisms as a token for the going straight to mobile payments shot regularly. Absolutely term but that's critical. Care. So I think you you've talked about that when looking to expand. Grow. We just don't feel your your key strategies at its mobile. Concern organic growth. And anything else what are those like you can you wanna have any particular reason to want to go forward with the product the dipper. The pages from outside. We we we operate we fall for businesses for where risk. If that's all her. You'd be happy because if you can deliver organic growth through innovation. Connecting the native of of consumers with what you have to watch what they were your ways of solving probably more efficient. Boring game chain then things primarily drive business update today. Basis if you think about. Acquisitions. In type tower. Four or five done work and the reason for a five day work is that that the solar gets all the economic benefit. And they've choir. Has to do something to transform that there's this so if you think about making acquisitions sort of two outcomes mach one is. You can excelled all right growth of that business week had some strategic asset changes the fundamental nature of what you. Acquired that business with Euro existing business. So right there that wine yeah positioned strategy which as a sort of well Bob our strategy within the context. Of other global scale. Earn if you can demonstrate that and whether that against the homogenous spread better grade outcome. Of the vast majority of acquisitions that. Because there's bottle which is there's integration issues. Yeah the biggest problem edge over power. So there you know we we talk about. China being groped their versus India for you know China controls of which eight. But it doesn't matter whether it's tripled partly by profit out of the business wire. China is relatively expensive. They make money with its pivotal period but top up last six to twelve months so there's an opportunity right so for us. The primary focus growth was organic and bring innovative. And acquisitions where it makes sense to complement their underlying. Strategic gap. Only ten. And you look you know looking for work on for a product features for the table. For us. But why not why not accept that does seem to me the beat. Video opportunity. I've got consumer in the connected consumer. You know where they are. We've got other things that we say is much lower priority. In the revolution that has so it's going down that. And you know any time during opening out at is that. I think he was presenting yesterday's tea has cut back travel off with a parent Singapore and pale. A big part of recently forward travel office for fifty. It's. You know I think it's very hard to find talented. Teams operating. Where smart strategies delivering great product that was you know. We were obviously as a company so that at ID 89 I would be established players involved men and recruitment got to the end of in Milan eni. As part of the world five to ten year old big ticket mental mining industry players and many market itself. We look and start looking more broadly and we found travel not supposed to fly to attract travel model. And the really attracting nervous team team of folks who understood the Asian market understood how to build products worked in this market have to that quickly. I can't underestimate the value Steve they're able to deliver. And how bad copper business. Terms of the keeping that team who obviously with. Its ownership they can instantly nominate him or better yet half post acquisition. Of stake. Alot longer but in the meantime if you work hard. Making sure that but what was that was great organisation doesn't doesn't disappear if they choose to at some future. They're having us. It's very good question here just for the management of another extension to go well I think. If you if you look at the price fires further Q adjusted grow businesses organically though the management team. That is in place when you're looking for by the F. Is hugely. And fit for part of as a kind of financial arrangement with that motivates them so to stick but. That by following the biggest thing because often that the seller of the business for the CEO of the major shareholders in working with. World will have enough money from that set to retire early take a bit of time on the think. Perhaps for the key thing is so to make sure. That they have the ability to finish to run health. And the vast a bit part of a bigger group. That there independent they get the benefit of being evicted but they control that's. And if you look at booking dot com you know they're there of the founders our business owners fall announcement 2005. Those guys that Italy until six years later in 2000. And let's transition then the next hour long is obviously worked out so well is now liquidity so that that come with. But if you look at fees they go to CEO from 2007 and we look at that RC 2010. A man of steel map. Kayak and open table or relatively more work is still around dictum that fits that I think. That that as the biggest factor even game alleviated by 80% probability of it how wrong. There's two is to find the right people and then to nurture it so they can continue to build the business physical. Hours of suspense but there's one other things up by non white come. See those those quite slow. But Ford credit. Up to two Kate. Neither neither of them got money for the following cash issues but we feel this way. Credit note this is bringing to fruition. Key factors behind that. And others have just add a bit more about Priceline group as we've talked about the kind of 69 brown but you know analyse not just about. Finally the seventh payable date. The Fed found itself so for the opportunities Taylor and you know we read all sorts of and a fifty so we. We acquired a 61 Israeli data business called Flickr which has been fooled into the end of business. And again you've got to manage that writers though those guys are hugely talented your reading of one placement number. You gotta keep motivated and then makes figures more valuable. Price data for. Now it's not just about everywhere dollar businesses is for a kind of brands are. You know we've ordered business Chicago a rocket fund them and that's as a smaller opposition Chicago. Just a few months ago. And we've got alert of that as a small business hopefully grow into. Because so not kind of a win when it the other brands were keeping an independent unit will make sure they get what Valerie bid. The group. And then there's the first so. Acquisitions side do that we got which is probably more relevant and last. A Euro salmon I think with the audience of hope for some people in Woodbury hotel is that. Booking dot com saw that it's it's obviously done phenomenally well on the kind of OK not. But it's a huge pain points for hotels in terms of a lot of the services that we provided. Name terms of technology markets that kind of have to out of date and not really scalable so. We've order business called boutique about a year ago and we go we're for the business Paul Price mark. So a big take essentially is heard this attack and marketing platform to. Now built. Your web site mobile applications the hugely scalable ways in the filed. So if you're an eleven properties. They probably build your website from somebody you know some you know down the road and it's been built one Sanofi have to. Designer again to three years later the star staff whereas with the beating model which is now for booking suites. That essentially got. Bob world class web site mobile application heavy everyday goods for its brand for the done. Enhancements made immediately get put much. And so this booking suites Phil we've developed within the booking business. We see as an opportunity that value to hotel is that we work with parliament on an active base price might fit for us what we you know. Began as a small business that we believe can have a big opportunity around I think my. It's literally just cannot confirm that vastly visibly feed off acquisitions as a become famous fund big game can do our clients can do venturing. Finally can bring in businesses within on your. Supposed to last wonderful hotel owners. Of the last two acquisitions that provide services to hotel owners that's correct yeah. Interesting trend. Fascinating insight. Last chart questions people. Wisconsin is like from the come down. OK I think we're you know. Quick to copy any other comments finally forgo. Thank Ivana athletic but you develop a to a panel that develop.

Related Videos:

  1. Catherine Gilvarry, Head Marketing APAC, Hostelworld - George Cao, Co-founder & CEO, DragonTrail -James Tan, COO, JetBay - Rex Tan, Head of Account Management, Baidu International discuss how you should prepare to enter the Chinese market.