Speaker 1

So, Nelson, great to see you again. So as it goes, at a Focus Right conference, there's always a lot of
discussion about Google on the stage. So we won't get any into any of the specific comments. But I'd love
you to just start by sharing. From your perspective, what is Google's role in the travel industry? Sure.

Speaker 2
Well, first and foremost, thank you. It's a pleasure to be here. Honor to be here. So great to see so many
of you in the room. It's an honor and yeah, thank you. Just to level set, it's relatively simple, our mission is
really centered around two things, the first of which is the simplification of the travel trip planning right.
And then ultimately driving value and business outcomes for our partners. Right. And at the end of the
day, we seek to be a trusted partner who provides extremely useful information that users can both in a
very fast and effortless way, book travel plans. It's really that simple.

Speaker 1
Great. So the way we're going to structure this session is you've released some research, I think, today
actually, on some trends and themes that you're seeing in the marketplace. Focus writes a research
company. We track consumer behavior quite frequently, so we'll kind of bring up some of these trends
that we are seeing in the market and then maybe talk a little bit about how Google positions products and
helps your partners map up against some of these trends. So the first one is pent up demand and
experiences. It's obviously been a nice run for the travel industry for the last six to nine months, right?

Speaker 2
Yes.

Speaker 1
Travel is sitting at the top of the list from a discretionary spend perspective. We see that in our survey
data. I'm curious, what sort of trends are you seeing in the search data that kind of aligned with that
point?

Speaker 2
Yeah, sure. Well, first of all, I think some of you will recall from the last time that I was here that 56% of
surveyed Americans plan to make a meaningful life or kind of a decision or moment over the next two
years. As part of that, as you can imagine, travel is going to be a big part of it. We've seen that pimped up
demand play out with strong search demand and intensity across the last nine months. To your point,
certainly for the majority of the year, that has played out as it relates to upcoming holiday travel. About
40% of those who are planning holiday travel are planning on spending at least as much as they have
done, if not more than they did in the past two years. And so that momentum is continuing. In the summer
months or leading up to the summer months, there was a 200% increase globally in searches around
different travel destinations for the summer in early April, in March, we were seeing queries around the
notion of cheap kind of cheap destinations or cheap countries to go to 7000% year over year. So this
Pintup demand continues and at Google it's our desire to make sure that we are meeting the desire to
take advantage of that demand through our automation products, allowing folks to really kind of take
advantage of that.

Speaker 1
So curious, what should we be looking for? Obviously there's some challenging news in the market about
potential recession. We're still seeing strong demand through the travel channels. What should we be
looking for? Maybe if we start to see some shifts in that pent up demand, maybe shifting to spend on
other things.

Speaker 2
Yeah, look, I think one of the things that we try to make sure that we do to help our partners and
consumers through those times on the user side, for example, we've helped to provide information,
research information around best time to make flight bookings, for example, and other cost saving
information beyond that for our partners. As I've mentioned, automation is really important as you think
about how to try to find pockets of demand in disruptive times and really take advantage of that in a way
that helps you to find those highest value customers in times of disruption through the pandemic. The
mentality hasn't really changed from the kind of mindset that we were seeing of those companies that
were being successful in those times. Those that were insights led, those that were data driven and those
that were agile were the ones that really not only maintained position through the pandemic but really set
themselves up for recovery through the pandemic. None of us have a crystal ball as to what's next, but I
think those that are leaned into automation as a way to kind of level the waves, if you will, will be the ones
that are most prepared for what's next.

Speaker 1
So we've also seen a shift in spend away from consumable products to experiences. That's a trend that
we've seen in our data. I know you've seen the same in yours. So are you thinking about this as a
permanent behavior change or would your recommendation to the marketers in the audience be exactly
as you stated before? Be smart, be nimble, follow the data?

Speaker 2
It's a yes and yes and right on the first part. I think one of the interesting trends that we're seeing in regard
to how we're perceiving experiences as an important place to spend time there seems to have been
somewhere along the way millennials. And the thought about millennials and Gym Z has been oh, they
don't really have a lot of money or they're not really spending. What's interesting about those groups is
that they have been kind of leading the way both in terms of the vitalness of experiences in the travel
journey, but also in leading this notion of blended travel where you've got both business and leisure being
combined into a singular trip. And I think that has quite frankly, massive implications for travel marketers,
not only in the curation, continued curation, and cultivation of their first party data. Understanding, by the
way, that there are challenges that exist with trying to identify blended travelers, but at the same time
really kind of the opportunity to reconsider their marketing messages as it relates to moving away from
kind of traditional inspiration, traditional discounts and or seasonality to one of really thinking about how
marketing messages made better play to recognizing this new dynamic.

Speaker 1
So I want to get the blended traveling a little bit but I first want to ask about Things to do. So Things to do
was launched fairly recently and I'm curious if the thought process behind the product launch was around
the digitization of that particular segment of the industry. So with that kind of the thought process that
tours and activities are becoming much more digitized and Google should play a role in helping connect a
traveler with an experience. Can you talk a little bit about Things To Do and kind of what's the strategy
behind it?

Speaker 2
Sure, I think it's kind of another yes. And if I could, Things to do is in an area that we're going to continue
to invest in as it relates to having that opportunity to go deeper, dive into what's available in an experience
in market when you're there being able to take advantage of those things. Like our hotel products in the
past and by the way, it's still a work in progress, it's got some time for continued development. But like our
hotel products we are looking to also make sure that we're bringing in all the right, both pricing information
and product information that is representative of the ecosystem. It actually parallels nicely with the notion
of the blended traveler. Right. When we think about someone who may be in a destination for which they
would not have been had it not been for the business travel but they want to understand the things that
they can do when they have downtime either before or after. I mean, think about this. 50% of business
travelers have already done some level of blended travel and 37% are considering doing that. I'd like to
take an unofficial poll of the room.

Speaker 2
I would not be surprised if there are some folks in this room right now who have a set of golf bags sitting
in their rooms or you either kind of tacked on three days before this or tacking on three days after. Some
kind of function thereof. Just a quick show of hands.

Speaker 1
There's a lot of liars out there.

Speaker 2
But a decent number. And I think it kind of speaks to the fact that this is a phenomenon for which Things
to do more micro. But macro certainly plays a role.

Speaker 1
And do you think blended travel is I mean, we've been talking about Blizzard for quite some time. Do you
think blended travel is here to stay or is it more of a flash in the pan? Obviously the pandemic kind of
fueled that type of behavior because workers were working from anywhere, they're starting to be pulled
back into the office. What's your thought on whether it's something that's a permanent shift in behavior?

Speaker 2
Absolutely think it's permanent, by the way. I don't think it's a flash in the pan. And I think we were already
doing this, I mean, certainly for those of us that have been business travelers and this has implications on
loyalty too, by the way. Right. Business travelers. We were using loyalty points for the notion of leisure
travel. Now we can actually do those things in combination with one another. And I think the pandemic, as
a function of what it represented, particularly in creating some flexibility around working considerations,
actually made it a bit more of an easy thing to kind of consider and get into. When you think about the
notion of loyalty, we've seen spikes this past July and June, certainly as an example for places like
Marriott Bonvoy or for Hilton Honors, where that was in combination with a lot of business travel. So it
almost kind of begs the question around the opportunity that marketers may have to how do I continue to
amplify messaging around loyalty programs, particularly knowing that there's this traveler that may be
doing a bit of both? And how can I continue to amplify different aspects, amenities, certain things about
properties that make that travel even easier to do, but not a fashion?

Speaker 2
The pan something that's going to be around for quite some time.

Speaker 1
So what our marketers doing? What are effective marketers doing to help that? It's a lucrative traveler
base. Right? So this is a high spending traveler base. So what are effective marketers doing to attract
that? Is it easy for you to identify that type of traveler? Or are they employing certain strategies to bring
more of that blended traveler into there?

Speaker 2
To be honest, I think a lot of it remains to be seen. I can't point necessarily to any particular marketer that
is doing it well. I think it's a kind of green shoots open field as to what could come next. I think we've all
had to benefit as focused group of us right here in this JW Marriott, where we can see that this is the type
of place that certainly is allowing for that type of thing. You got good internet speed, a FedEx office, and a
golf course, right? And so I think companies ability to be able to promote and highlight those types of
amenities and those types of things in regard to the loyalty program, existing loyalty programs would be
very significant in trying to continue to bolster that and to drive that through.

Speaker 1
Great. So I want to shift to the future of search and digital. So last year you talked about the route to
Read, I think is the term that you used as you mapped out the importance of digital transformation to
improve nimbleness for travel companies. Have you seen them embracing that. Was that message
heard? Yeah.

Speaker 2
I don't necessarily want to take credit, but I certainly have seen it be embraced. The thing I had
commented on is those companies that were both surviving through the pandemic and really positioning
themselves to accelerate through recovery were those that were data driven, insights, led and agile. And
there are certain companies that certainly fit that bill kind of immediately. I think about Marriott and
Wyndham as two examples, both of which really utilized first party and third party data very effectively in
being able to both target and engage, even on site through experiences and so forth, the relationships
and deepening those relationships that they have with their partners. Wyndham, in particular, Lisa, who's
their CMO and their CFO really came together and created a common language, an alignment between
two what had been, you know, previously siloed parts of the organization around common goals, common
alignment, customer value and customer engagement to really drive their goals and objectives through
celebrity. As another example, is one where their CEO kind of said, we want the comeback to be stronger
than the setback. And for them, that was really kind of a message around changing creative, looking at a
younger group of audiences to try to change and pivot towards something new, working with our Creative
works team to really kind of reevaluate what that looks like and to move the ships.

Speaker 2
No pun forward, no pun intended. No.

Speaker 1
Another topic that we've heard a few times here today and we've heard for the last 1015 years is that
concept of personalization. And you mentioned personalization last year as one of the challenges of our
industry. So I'm curious, has any progress been made on that front in the past year?

Speaker 2
Yeah, I think so. I mean, look, privacy hand in hand with personalization is generally kind of regulated by
three things. There's user expectation. There is kind of technical constraint, different companies doing
different things in the space, and there's always the regulatory element of it all. But for the purposes of
this conversation, talking about the user expectation as being really key, 81% of people, not surprisingly,
are concerned about how their data is used. Right. But interestingly enough, at the same time, three out
of four people want more personalization and the messages that they receive. I don't think these two
things are necessarily in conflict with one another. It's incumbent upon travel, marketers and people in
this space to first and foremost, be transparent with users in terms of how that data is being used. But
secondarily, give them control and choice over that personalization. Google actually, more recently has
what we call my data I'm sorry, my advertising center, which allows for our users to kind of toggle up or
toggle down the messages that they receive on a categorical basis. Travel would be one of those
examples. And I think as marketers travel, personalization will always be important, which continues to
emphasize the importance of curation and utilization of first party data.

Speaker 1
So speaking of personalization, I want to touch on shift in behavior. I'm going to share a quick story with
you and then I'd love to hear your reaction to it. So I was in Italy last summer and traveling with my family.

Speaker 2
I think perhaps half of this room was in it.

Speaker 1
Many folks from the States were in Italy last summer. So we were traveling through Naples, and I asked
my daughter to find us a restaurant for lunch, and immediately she pulled up TikTok. That was her first
move, was to pull up TikTok and find a restaurant. She flipped over to Instagram to really check it out and
look at the vibe of it. So you've obviously got YouTube as a product, but I'm curious, is that a concern of
yours that the younger generations are shifting towards more social and visual search, or do you feel like
you have a product in YouTube that serves that purpose?

Speaker 2
I think we have products that ultimately serve that need. The whole notion of the millennial in the Gen
Zeer is an interesting one, as it believed the blended travel. Right. And the one thing I didn't mention is
what you just beautifully articulated, which is their kind of reliance on inspiration from both video and
social as a function of doing so at Google. What does that mean? Well, clearly, as we continue to evolve
search products and so forth, I think you'll see a lot more as it relates to visual search in the SERP and as
it relates to YouTube. Our shorts product has taken off quite well, and there's certainly the combination
between that short form and long form, which I think really tells a very cohesive and nice story arc around
how people can be inspired by the notion of travel. Look, we're always cognizant of the competition, but at
the end of the day, like I mentioned up in the beginning, our primary concern is less about that and more
so about making sure that our products and solutions are delivering upon the notion of travel, trip planning
and simplification, and ultimately continuing to drive value to our advertising partners.

Speaker 1
What I didn't say at the end of the story is I then picked up Google Maps, checked out reviews, and made
sure that that restaurant was appropriate.

Speaker 2
Thank you.
Speaker 1
So I know we've got about a minute left, and I'd love to finish with a game of this or that, so I'll give you a
couple of choices and you can just choose what's better for you. Okay, we're going to start off with a little
nervous. Now we're going to start off with sustainability tread. So net zero by 2050 or no chance?

Speaker 2
Absolutely. Hopefully prior to 2050.

Speaker 1
Short form. Video or search? Search.

Speaker 2
And I'm just thinking for myself now.

Speaker 1
All right, let's go easy here. Snow or sun?

Speaker 2
Sun.

Speaker 1
TikTok or YouTube? YouTube. Another softball?

Speaker 2
Yeah.

Speaker 1
Thinking about the last session web two or web three.

Speaker 2
Web three.

Speaker 1
AI. Or metaverse AI. Travelers. Titans or trailblazers travelers. Ladies and gentlemen, nelson Boys.