Booking Holdings Inc.’s outlook for the fourth quarter fell short of analyst expectations as pricier flights and protests in Paris affected demand in October. The online travel platform expects gross bookings to grow 2% to 4% in the last three months of the year from the year before, weaker than the 7% growth anticipated by analysts.
“Disruptions to travel to and from the Middle East, the conflict’s broader indirect effects such as elevated airfares, and localized unrest in certain European cities” hurt demand in October, the company said in a statement on Tuesday. Paris bookings on Airbnb and other accommodation services slumped following riots and looting in the French capital. Booking said global travel demand “moderated somewhat” towards the end of the third quarter, though domestic demand remained resilient.
Third-quarter revenue fell 1.2% to $8.89 billion, lower than the $9.54 billion expected by analysts. The threat of replacement by artificial intelligence has also been a key worry for investors. AI agents, like Meta Platforms Inc’s Muse, could circumvent online travel platforms by searching and booking flights and hotels directly, according to Bloomberg Intelligence analyst Nicole D’Souza.
“Messaging this week may still not be sufficient to counterbalance investor fears on AI disintermediation risk,” Truist analyst Gregory J. Miller said in a pre-earnings note, adding that a few quarters of AI agents are needed to assess the impact on Booking and its peers. The company has been investing in its AI capabilities, integrating the technology in its own brands and collaborating with AI platforms.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing