(via Bloomberg video : http://www.bloomberg.com/video/expedia-shifting-focus-to-mobile-bookings-uWmJb0csSV~a1A_moNZZag.html)
Dara Khosrowshahi : We are thinking about how we develop the Google glass, I think Google glass for us is gonna be more a platform for notification, I think we are continue to using a glass for example to book a trip, but if they had booked the trip for example on the Expedia mobile app, you are gonna get the notices that’s on what gate your flight is, leaving from, whether is it there is a delay or not, we build the technology, so that those same notifications can easily go to a Google glass or someone’s watches etc. so now with the proliferation of devices coming out there, you have to build your technology with very flexible architecture, so that this kind of notices can be send to basically any devices, anyone can imagine out there, you build that architecture, so now is about coding that specific hardware spec, so we like where we are at, I do see we are having a Google glass app, and pretty soon earlier or later.
Jon Erlichman : Interesting, what about the competitive environment right now. Wallstreet is paying attention to a new analytical report from Deschutes Bank, in which it said there is much more tense competition in the US market and it make it concern about your business. How would you describe your competitive market right now on how Expedia fit in to that ?
Dara Khosrowshahi : Well it’s a very competitive market, but it’s a very competitive market because it’s an anonymous market, travel is over trillion dollars global market place out there, there are a number of players out there, I say right now the advantage with all on players, and there is plenty room for one winner there, but company like ourselves over a long period of time, we are gonna gain shares, we have investigate shares, we gonna have great product to gain that kind of share. but we think the long term trend are very very good. And within the overall leisure trend, first part of travel become online, but we see great potential with corporate travel coming online, and we are specially excited about an acquisition, corporate travel tool. A tone of money by driving more user online, consumer business don’t need all an agent, but at the same time, they can get high class services for the really complex travel as well, so we like both of those transformation for long term prospective.
Jon Erlichman : When new technology allow for new ideas or concepts to build and grow. Sometimes, there can be issue, regulatory issue. AirBnB has been a battle in New York, I love to give your take on the AirBnB business.
Dara Khosrowshahi : We think this is a great business, it’s a new way for consumer to bring on new inventory for consumer to use and I think clearly like that new inventory, it’s a fairly small segment consumer out there, but I use the AirBnB to book a Paris vacation for my mum, she’s staying at Paris for a couple week, so it’s a great product to think over a long period of time, the Loft are going to catch up with AirBnB etc. So that’s what I mean, when I say it’s a big market, it’s a trillion market place, you are gonna a lot of companies to succeed, the company like ours, the company like AirBnB, there is one company wasn’t competitor Trirago that we bought, about technology. So we have to be prepare for new entrance and we absolutely think that these new entrance is gonna to grow, gonna grow very big.
Jon Erlichman : So can you give me a sense on that note, How much money did you set aside for potential quickly quickly growing companies that you might be interested in buying?
Dara Khosrowshahi : Well, the most recent example for us Trirago, which is a hotel match software, which we spend over 600 million dollars for majority acquisition of that company, we still partner with the founder, our company is very cash generative, last we have most billion dollars cash flow, so this give us the flexibility to invest both the growing business organically, we also bought back shares, but also acquiring necessarily, so I think all three of those is gonann to play a part for long term growth agenda of the company