Booking Holdings misses revenue forecasts but sees travel demand holding up

what happened

According to Barron's, Booking Holdings' gross bookings grew 10% in the third quarter to $54.5 billion, and hotel room nights rose 7% to 345 million. Revenue, however, slipped 1% to $8.89 billion, well below the $9.55 billion Wall Street had expected. Adjusted earnings reached $4.66 per share, up 17% and above the $4.49 analysts had forecast.

The company also booked a $900 million revenue reduction and a $100 million accrual tied to a possible Federal Trade Commission lawsuit against Priceline, which is now negotiating with the regulator. Booking kept its full-year outlook for high single-digit gross bookings growth but warned that geopolitical and macroeconomic uncertainty could weigh on near-term travel. The stock closed up 1.3% in regular trading, then fell 2% after hours.

why it matters

The report suggests domestic travel remains solid while international trips have softened, with October hit by Middle East disruptions and higher airfares. The fourth-quarter guidance points to modest room nights and bookings growth, which matters for the wider online travel sector, including Expedia and Airbnb, both reporting later this week.

market impact

Booking and online travel stocks: cautious outlook and possible FTC penalty weigh on sentiment

• ▼Booking Holdings shares pressure down — revenue below forecasts and cautious signals on international travel

tags

instruments