Booking Holdings cuts annual revenue growth forecast as Middle East war weighs
Booking Holdings Revises Revenue Outlook Amid Geopolitical Tensions
By Anshuman Tripathy
April 28 (Reuters) - Booking Holdings cut its annual revenue growth forecast on Tuesday and warned that the war in the Middle East could weigh on bookings through the end of June, sending shares of the online travel agency down about 4% in after-hours trading.
Impact of Middle East Conflict on Bookings
The company said growth in room nights — a key gauge of occupancy and revenue generation — was reduced by roughly 2 percentage points in the first quarter due to the conflict, which erupted in late February.
An uncertain rest of the year threatens the recovery in demand for the travel industry as trade volatility and prolonged wars could further push up costs for customers.
Broader Effects on Global Travel Patterns
"The impact of the conflict was also felt outside the Middle East region, as we saw changes in broader travel patterns, particularly in transit corridors, such as the one between Europe and Asia," finance chief Ewout Steenbergen said on a post-earnings call.
Long-Term Outlook for Middle East Market
Booking CEO Glenn Fogel said the company viewed Middle East — which represents 7% of its 2025 global room nights — as a long-term strength and that it was well-positioned for when normal travel demand resumes.
Industry-Wide Challenges and Comparisons
Earlier on Tuesday, Hilton Worldwide also hinted at weaker room revenue in the Middle East and North Africa due to travel disruptions.
Financial Performance and Forecasts
Norwalk, Connecticut-based Booking Holdings said it now expects annual revenue growth to be in high single-digits, compared with its prior forecast of low double-digits.
"We are mindful that a sustained disruption could introduce broader inflationary pressures, including fluctuations in jet fuel prices, airline capacity reductions, as well as weigh on traveler sentiment more broadly," Steenbergen said.
Quarterly Results
Gross bookings for the first quarter came in at $53.8 billion, up 15% from a year earlier.
The Kayak-parent reported a quarterly adjusted profit of $1.14 per share, compared with the analysts' average estimate of $1.08 per share, according to data compiled by LSEG.
Total revenue for the three months ended March 31 was $5.53 billion, up 16% from a year earlier. Analysts had expected $5.52 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Sahal Muhammed and Sriraj Kalluvila)
