Booking Holdings’ gross revenue and bookings in the second-quarter exceeded management’s previous forecasts. But the performance revealed a tale about two markets: a strong international demand, versus enduring weakness in leisure travel to the U.S.
Executives said that conditions have improved slightly compared to the first quarter, but CEO Glenn Fogel noted that the U.S. is the company’s region with the slowest growth.
Ewoutsteenbergen, the CFO of the company, stated that “we see the top end U.S. consumer markets will be a bit stronger. We expect them to spend more money on 5-star hotels and international travel, which includes Europe.” While “at the bottom end, U.S. Consumers are still more cautious”
Over the past year, hotel room nights and alternative accommodations have increased by 8 percent.
Booking Holdings is a good example of a company that has less exposure in the U.S. than its competitors, such as Expedia and Airbnb.
Although inbound travel from Canada and Europe, primarily, has decreased year-over-year to the U.S., routes such as Canada-Mexico and Europe-Asia, have seen strong growth.
Steenbergen noted that Europe is faring well. “We are seeing Europeans book sooner and at higher rates than Americans.”
