Julie Whalen: Yes. So on the streamlining of expenses, I think we’ve been saying all last year that, obviously during the transformation phase, we’ve ramped up in expenses. We’ve had duplicate systems, legacy systems while we’re still building out the new system and all the costs that are associated with that across the board from cloud and licensing and maintenance and things like that. And so we have said as we come out of this transformation phase that we think there’s opportunity to deprecate systems and redeploy resources and find cost savings throughout the P&L. So this is our first sort of stab, if you will, at that. And so you’ll see things across the board coming out as we move throughout the year in cost of sales, in overhead.
And to the extent that obviously crosses over into capital expenditures, you’ll see some of the pressure coming off at least the growth rates there. And if not, it also in absolute dollars. But that’s simply what that represents. We’re obviously not going to go into a lot of details today, but we did purposely say that we will give you more information later this quarter. And as we move throughout the year on that, as we give you more of the details associated with it.
Peter Kern: And I would just add. That’s always been the plot that we wanted. This wasn’t just to build cool new things. This was also to build them the right way and be efficient in how we did it. And that’s the opportunity that the transformation has also provided for us. And we’re excited to be on that side of it, too, not just from an experience standpoint, but from an efficiency standpoint.
Jed Kelly: Thank you.
Operator: Thank you. Our final question comes from Mark Mahaney from Evercore ISI. Mark, please go ahead.
Mark Mahaney: Okay, thanks. I’m sure these questions have been covered, but if I could ask again, please. Of these two initiatives, the replatforming of the brands, particularly the Vrbo brand, and then the One Key strategy, I assume these are more like snowball events. Have you already seen an impact on the business or on demand cross-selling retention acquisition from these so far? Or would you, if not, could you let us have expectations of when we would? Thank you very much.
Peter Kern: Yes, Mark, I’ll give you a quick answer. I think we sort of addressed some of it already. But basically, the Vrbo transition to the unified stack is more of just a, an execution thing. I think what it gives us is the opportunity now to accelerate Vrbo in terms of feature and test and learn and grow faster, as I mentioned to the rest of the group. We dug a hole, we knew we would. When we moved it to the new stack, the conversion would go down. We have been digging out of that hole. We’re about back to par. But we didn’t do it to get to par. We did it to accelerate far past that. And now we have the opportunity in Vrbo riding on the same rail as the other brands, gets the benefit of all the testing, shared testing opportunities, winners that we found other places and so forth.
So we’re excited about the progression of that product, but it had to go through the bad to get to the good. As far as One Key goes, I also mentioned, we feel very good about the early indicators. Yes, there is more cross shopping. Yes, we’re seeing more repeat from certain pools of customers that we thought would benefit from this, like hotels.com customers who had less than 10 stamps in our old system and people, if you will, who hadn’t earned any benefit. Now they have benefit and they’re coming back more. And that’s what we want to see. But as I also mentioned, while millions of people have earned One Key cash on Vrbo, a small percentage of them have re-spent it. And that just has to do with the cycles of the booking windows for Vrbo and that people rarely book more than once or twice a year.
So we’ve got to get those, we expect to see those people back in. That’s why I’ve said we’ve built up this value and now that value needs to be realized as they come back direct later, as they use that One Key cash across other brands with more cross shopping, like that’s the dream. And of course getting Expedia and hotels.com members to use their One Key cash on Vrbo, which we’ve also seen. But again, those cycles aren’t every month. People do that once, twice a year. So we’re seeing good early signals, but it’s all building. And that’s why I’m excited. Like it’s going to be a slow build, but it’s going to be a great sticky thing for us over time. And again, we’ll keep more and more people as we get more of the right people in, as we keep more of them, and as they get to use all of our products.
And again, we capture more wallet share from them. That’s what we’re pushing for.
Mark Mahaney: Thank you, Peter.
Peter Kern: Thanks. And thank you everybody. I think that was the last question, operator. Is that right?
Operator: That’s correct.
Peter Kern: Okay, thank you everybody. Appreciate your questions and we’ll see you in May. Take care.
Operator: That concludes today’s call. You may now disconnect your lines and have a nice day.
