Company Overview: Booking Holdings
Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel platform operator. Since its founding in 1997, the company has grown into a core platform connecting millions of travelers with accommodations worldwide, establishing itself as a global leader in the digital travel industry.
With brands such as Booking.com, Priceline, Agoda, Kayak, Rentalcars.com, and OpenTable, the company offers a wide range of integrated travel services, including hotel bookings, flights, car rentals, and restaurant reservations. Especially through AI-driven personalized recommendations and price prediction algorithms, its technology-centric platform strategy enhances both profitability and user experience.
The company is headquartered in Norwalk, Connecticut, USA, and operates in over 220 countries and territories worldwide. Following the pandemic, it has been focusing on sustainable travel and a mobile-first strategy as part of its long-term growth approach.
Booking Holdings is regarded as a high-potential long-term investment candidate, with a stable platform business model benefiting from the global recovery in travel demand.
Financial Summary (2022–2024)
Booking Holdings has maintained steady growth driven by the global rebound in travel demand following the pandemic. The table below summarizes key financial metrics over the past three fiscal years.
| Metric | 2022 (Dec 31, 2022) | 2023 (Dec 31, 2023) | 2024 (Dec 31, 2024) |
|---|---|---|---|
| Revenue (Million USD) | 17,090 | 21,365 | 23,739 |
| PER | 51.28 | 42.92 | 25.54 |
| PBR | 50.59 | – | – |
| EBITDA (Million USD) | 5,354 | 6,344 | 8,517 |
| EBIT (Million USD) | 4,903 | 5,840 | 7,926 |
| Pre-tax Profit (Million USD) | 3,923 | 5,481 | 7,292 |
| Net Income (Million USD) | 3,058 | 4,900 | 5,882 |
| Dividend Yield (%) | 0.62 | 0.69 | 0.83 |
| ROA (%) | 12.48 | 17.26 | 22.60 |
※ Source: Naver Finance – Booking Holdings
Recent Performance Highlights
- Consistent Revenue Growth: Annual revenue increased steadily from $17.09 billion in 2022 to $23.74 billion in 2024, reflecting the recovery in global travel demand.
- Improved Operating and Net Income: EBIT rose from $4.9 billion to $7.9 billion, and net income from $3.1 billion to $5.9 billion, indicating stronger profitability.
- EBITDA Expansion: EBITDA grew from $5.4 billion in 2022 to $8.5 billion in 2024, highlighting the company’s robust platform-based revenue model.
- Rising ROA: Return on Assets increased from 12.48% to 22.60%, demonstrating more efficient capital utilization.
- Falling PER: The Price-to-Earnings Ratio dropped from 51.28x to 25.54x, suggesting valuation normalization as earnings improved.
- Increasing Dividend Appeal: Dividend yield rose from 0.62% to 0.83%, indicating stronger potential for shareholder returns driven by robust cash flow.
Global Competitor Comparison
Booking Holdings faces intense competition from global travel and accommodation platforms such as Expedia, Airbnb, and Trip.com. The table below compares key metrics among these major competitors.
| Category | Booking Holdings | Expedia Group | Airbnb | Trip.com Group |
|---|---|---|---|---|
| Core Business | Hotels, Flights, Car Rentals | Online Travel Booking, B2B | Lodging Sharing Platform | China-focused OTA Platform |
| Recent Revenue (Billion USD) | 23.74 | 12.96 | 9.60 | 5.31 |
| Operating Margin (%) | 33.4 | 12.7 | 18.6 | 6.5 |
| PER (TTM) | 25.5 | 19.8 | 34.2 | 21.3 |
| ROE (%) | 54.7 | 18.2 | 31.5 | 8.9 |
| Strategy | Global OTA, AI Recommendations, Mobile Focus | Integrated B2C + B2B Strategy | Expanding Experiences, Community-Based | Expanding Presence in China and Abroad |
※ Source: IR Reports & Market Research (2024–2025)
Key Strengths of Booking Holdings
- Global Market Leadership: Booking Holdings leads the global travel market through powerful brands such as Booking.com, Agoda, and Priceline.
- Diversified Portfolio: The company offers end-to-end travel solutions across hotels, flights, car rentals, and restaurant bookings, strengthening its platform-based revenue model.
- AI & Automation Capabilities: Booking utilizes AI-powered recommendation systems and price prediction algorithms to improve user experience and maximize booking conversions.
- Mobile-Centric Strategy: The company boasts a strong mobile ecosystem, with more than half of all bookings made via mobile apps.
- Global Scale & Localization: Operating in Europe, Asia, and North America, the company expands its market share through localized user experiences.
- Financial Stability & Cash Flow: Backed by steady earnings, high EBITDA margins, and strong cash flow, the company is well-positioned to pursue long-term strategic growth.
Investment Attractiveness of Booking Holdings
Booking Holdings demonstrates strong long-term growth potential in the global online travel platform market, backed by powerful brand equity and a technology-driven strategy. Below is an investment attractiveness assessment based on key criteria.
| Category | Score | Explanation |
|---|---|---|
| Valuation | 75 | PER is stabilizing, and the company is highly valued compared to global competitors due to its platform dominance. |
| Growth | 80 | Booking Holdings is experiencing steady growth following the post-pandemic travel recovery, with additional potential through AI-powered service expansion. |
| Profitability | 85 | The company maintains high EBITDA and EBIT margins, ensuring a stable and scalable business model. |
| Stability | 80 | A geographically and service-diversified portfolio enables the company to mitigate external risks effectively. |
| Dividend | 60 | While dividend yield remains relatively low, gradual increases are expected, along with more shareholder-friendly policies. |
※ Source: Booking Holdings IR Reports and Financial Data.
Key Risks of Booking Holdings
While Booking Holdings holds a strong position in the global travel market, there are several risk factors worth noting:
- Rising Competition: Intense rivalry with platforms like Airbnb and Expedia is pressuring booking fees and platform margins.
- Volatility in Travel Demand: Global economic uncertainty or the resurgence of pandemics could significantly impact travel demand.
- Currency and Regional Exposure: With large portions of revenue from Europe and Asia, the company is sensitive to currency fluctuations and regional regulations.
- Technology Maintenance Costs: Maintaining AI and recommendation systems requires substantial investment, adding cost burdens.
- Data Privacy & Compliance Risks: As a global platform, the company must comply with GDPR and data regulations across regions, with potential legal liabilities for violations.
Overall Opinion on Booking Holdings
Booking Holdings is a key player in the global travel platform market, exhibiting solid profitability and stability amid post-pandemic recovery. Its strong brand portfolio and technology-centric strategies serve as powerful drivers for future growth.
- Mobile-First User Base: A growing share of bookings is made via mobile, reinforcing platform competitiveness.
- Tech-Driven Profit Optimization: AI-powered personalized recommendation engines play a crucial role in boosting conversions and earnings.
- Risk Mitigation Capacity: While the travel industry is sensitive to economic shifts, brand strength, strategic agility, and high ROE help mitigate potential risks.
Conclusion: Backed by global travel recovery and digital transformation trends, Booking Holdings is a compelling long-term investment candidate. Despite rising competition and external risks, the company’s solid fundamentals and technological strengths make it a highly attractive long-term investment.
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※ This content is for informational purposes only. Final investment decisions are solely the responsibility of the investor.
