David Rosenthal: evaluation

Transcript context

…Showing you prices and to the consumers to decide what they want and then handing you off to an OTA or supplier to complete the transaction. Got it. So let’s go back. We’ll kind of finish out the history and facts and then there’s a bunch more to dive into here. So a couple years go by, Booking starts to sort of slowly grow its supply base and its demand base in Europe, shifting as Europeans are coming online to actual European customers. One thing that's actually another side note that I would just want to put a pin in to come back to, on the demand side, we mentioned search engines, as search engines start to rise in prominence as kind of the front door to the internet, travel and in particular OTAs become one of, if not I think the biggest category of spend in terms of search engine advertising because the link between searching Google or whatever search engine for a villa in Rome and an online travel agency is you’re so far down the funnel, it’s a perfect type of advertising for these companies. Yeah. Travel is a really nice use case for search advertising for a couple of reasons. The two biggies are, number one, it has high purchase value so they’re relatively large transactions; and number two, it’s a very close combination between search and transaction. So online searching for a home, online searching for a car. All these are completed online and so as a first case of direct response advertising, travel is a really big use case. And so again, you saw the OTAs as one of the biggest categories of spenders on Google.…

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