Booking beats estimates on outlook, plans a 25-for-1 split

[NEW YORK] Booking Holdings reported better-than-expected first-quarter gross bookings, indicating continued strength across the travel industry.

Gross bookings are expected to rise 15 per cent at the midpoint, the Priceline owner said in a statement, topping the 13 per cent increase analysts had projected. The metric, which reflects the total dollar value of travel services booked by customers net of cancellations, is a key driver of revenue. Its revenue outlook also beat expectations at the midpoint.

The Norwalk, Conn-based company signalled a sharp step-up in reinvestments funded by its savings programme. It has plans to deploy about US$700 million above its usual spending levels in 2026, up from about US$170 million in reinvested in 2025.

The investments are to expand artificial intelligence (AI), geographic growth, and advertising initiatives, chief financial officer Ewout Steenbergen said on its earnings call. The company expects those initiatives to generate about US$400 million in incremental revenue this year.

Booking also flagged a slightly lower fourth-quarter average daily rate, a key measure of pricing and traveller spend per night, and shorter lengths of stay compared with a year earlier, trends that “may indicate that some consumer segments are continuing to be thoughtful on their discretionary spending”, Steenbergen said.

The company approved a 25-to-1 stock split.

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The results came after peer Expedia Group posted its fastest quarterly revenue growth in three years on resilient US travel demand and stronger forward bookings. Airbnb reported a fourth-quarter bookings beat and projected at least low double-digit revenue growth this year. Both signalled that consumers continue to prioritise travel, reinforcing a supportive demand backdrop for online platforms.

Booking shares were little changed in extended trading. The shares had dropped 20 per cent this year to Wednesday’s (Feb 18) close amid AI disruption concerns. BLOOMBERG