Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from James Cakmak - Sidoti & Co.
James Cakmak - Sidoti & Co.
I was wondering if you could provide some more color on trends that you're seeing on the opaque travel side domestically?
Jeffery H. Boyd
I think what we've seen throughout the year is strong consumer demand for value and a high level of interest in the channel from suppliers as a place to discount, and as a result it's driven some good results in terms of the growth in our merchant gross bookings. And we're pleased with the results we've seen so far this year.
James Cakmak - Sidoti & Co.
So as far as how they performed in third quarter over 2Q, would you say that with unemployment and everything picking up it was slightly stronger than what we saw before, the demand?
Jeffery H. Boyd
I don't think we have a particularly comment or point of view that the demand has gotten stronger or weaker as a result of the month-to-month changes in employment and economic figures. We've had very robust demand for our products really across the board. The real distinctions that you see are, for example, in airline tickets, where very low airfares has put a dent in the supply environment and the demand environment for opaque airline tickets, and we mentioned that in our prepared remarks.
Operator
Your next question comes from Scott Barry - Credit Suisse.
Scott Barry - Credit Suisse
Could you just touch on some of the drivers of the impressive ability to maintain your ad returns despite the skinnier unit economics and increased clicks per reservation in this type of macro environment?
Jeffery H. Boyd
I think the thing that has benefited us in that regard is very strong brand strength, which helps your conversion and helps you get clicks in the first place. And then with respect to the hotel business, continuing to add to supply and innovate on the website, which helps your conversion.
Robert J. Mylod Jr.
I would also say, Scott, that as the business gets more and more mature, an increasing percentage of our business, especially internationally, is being driven by repeat, and that helps offset or another way of saying it is allows us to reinvest in growth because a lot of the repeat comes for free.
Operator
Your next question comes from Imran Khan - J.P. Morgan.
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