Booking cuts forecast, boosts AI

Booking Holdings cut its annual revenue-growth forecast on April 28 after saying the war in the Middle East is likely to weigh on travel bookings through the end of June. (reuters.com) The company now expects 2026 revenue growth in the high single digits, down from its earlier forecast for low double digits. Shares fell about 4% in after-hours trading after the update. (reuters.com) Finance chief Ewout Steenbergen said the conflict cut first-quarter room-night growth by about 2 percentage points. Booking said the Middle East accounted for 7% of its 2025 global room nights, and executives said disruptions also hit Europe-Asia transit corridors. (reuters.com) The weaker outlook came even as Booking reported a strong first quarter by the numbers. Revenue rose 16% to $5.53 billion, gross bookings climbed 15% to $53.8 billion, and adjusted earnings per share came in at $1.14, above the $1.08 analyst estimate compiled by LSEG. (reuters.com) (fool.com) Room nights booked reached 338 million, up 6% year over year, and Booking said growth would have been about 8% without the Middle East impact. For the second quarter, the company forecast 2% to 4% room-night growth and 4% to 6% growth in gross bookings, revenue and adjusted EBITDA. (fool.com) Executives used the earnings call to argue that artificial intelligence is starting to show up in operating results. Glenn Fogel said Agoda posted a double-digit year-over-year reduction in customer service costs per booking, driven by AI-assisted automation. (phocuswire.com) Booking also said AI tools are helping customers shop and book inside its platforms instead of leaving for outside chatbots or search engines. PhocusWire reported executives highlighted Priceline’s AI assistant Penny and newer shopping features such as smart filters as part of that push. (phocuswire.com) (pymnts.com) The company’s broader strategy is to keep building what it calls a “connected trip,” where flights, hotels, ground transport and attractions are booked together. In the first quarter, connected-trip transactions grew in the high teens and represented a low double-digit share of Booking.com transactions. (fool.com) Booking also returned cash aggressively while demand was still holding up outside the conflict zone. It repurchased a record $3.6 billion of stock in the quarter and ended March with $16.5 billion in cash and investments. (fool.com) The result was a split message from one of the world’s biggest online travel companies: geopolitics is cutting into near-term travel demand, while AI is trimming service costs and nudging more travelers to book inside Booking’s apps. (reuters.com) (phocuswire.com)