U.S. growth has flattened, and analysts warn of a slowdown in the broader travel industry
Feb 21, 2025
Booking Holdings exceeded analysts’ expectations for its fourth-quarter profit, benefiting from a strong recovery in Asian travel markets. While travel demand in Asia, particularly China, continues to grow, the U.S. market is stabilizing after a surge in “revenge travel.” However, concerns about slowing growth have led to a decline in Booking’s stock price in aftermarket trading.
Key takeaways
- Strong Asian growth: Room night bookings in Asia grew in the mid-teens, while U.S. bookings remained flat;
- Stock drop: Shares fell about 10% in aftermarket trading despite beating profit expectations;
- Slowing travel demand: Travel companies, including Hilton, Marriott, and Expedia, expect slower demand growth in 2024;
- Decelerating growth: Analysts suggest Booking’s growth is normalizing rather than accelerating;
- First-quarter guidance: The company forecasts 4-6% room night growth and 11-13% revenue growth, with analysts noting a return to conservative guidance;
- Profit beat: Adjusted Q4 profit was $32 per share, surpassing the $29.86 per share estimate.
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