– Online travel agency Booking Holdings surpassed analysts’ forecasts for both quarterly profit and revenue on Tuesday. The company managed to overcome the challenges posed by economic uncertainties in the U.S., thanks to robust demand for global travel experiences.
The firm has been profiting from an ongoing increase in tourism to Southeast Asian locations due to affluent Chinese travelers. This trend has concurrently led to higher prices for accommodations and travel-related services in these areas.
Nevertheless, the tariffs imposed by U.S. President Donald Trump on imported goods have sparked broad concerns about an economic downturn, leading to a decline in consumer confidence along with reduced spending on non-essential items.
This morning, Hilton Worldwide, an international hotel chain, revised its prediction for 2025 room revenue downwards, marking the first time a major U.S.-based hospitality company has adjusted its expectations due to declining travel expenditures amid a worldwide trade conflict.
Booking reported an adjusted profit of $24.81 per share for the quarter ending March 31, exceeding analysts’ average forecast of $17.33 per share, as per data gathered by LSEG.
CEO Glenn Fogel stated that there is ambiguity regarding the short-term geopolitical and macroeconomic climate in the marketplace.
The total number of room nights booked with Booking reached 319 million for the quarter, marking a 7% rise compared to the previous year. The company reported first-quarter gross bookings amounting to $46.7 billion, which represents a 7% growth over the same period last year.
The total revenue for the quarter amounted to $4.76 billion, an increase from $4.41 billion recorded in the previous year. According to analysts’ average forecast, the expected revenue stood at $4.59 billion.
(Reported by Aishwarya Jain and Abhiniv Parmar in Bengaluru; Edited by Alan Barona)
Leave a Reply