Booking Holdings Reports 27% Rise in Merchant Revenues Q1 2026, Faces Investor Pressure on Connected Trip Strategy
💰 May 13, 2026, Booking Holdings faces strategic challenges despite strong financials. Merchant model revenues surged 27% in Q1 2026, but $3.6 billion was spent on stock buybacks, leading to a $8.7 billion stockholders' deficit. The merchant model held $8.2 billion in deferred bookings, while the Connected Trip strategy remains small. Non-hotel services offer lower margins, and AI poses competitive risks. Since 2023, over $25 billion was returned to shareholders via buybacks and dividends.
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