Booking Holdings, under the leadership of CEO Glenn Fogel, recently shared its financial results for the second quarter of 2024. While there was no mention of the $452.5 million fine incurred by the company in Spain, Fogel remained positive during the call with analysts. The company reported total revenue of $5.9 billion, a 7% increase year-over-year, and gross travel bookings of $41.4 billion, up by 4%. Additionally, the adjusted EBITDA for Q2 was $1.9 billion, marking a 7% growth from the same period in 2023.
One of the key highlights of the call was Booking Holdings’ alternative accommodation business, which now consists of 7.8 million listings worldwide, an 11% increase from the second quarter of 2023. Fogel mentioned that the company continues to grow this segment faster than its overall business. He expressed disappointment at the lack of inventory in the United States but sees it as an opportunity for future growth. Fogel believes that Booking.com’s advantage lies in its ability to display all types of accommodations, including hotels and alternative properties, on a single platform, giving customers the freedom to choose based on their preferences.
Fogel emphasized the company’s success in leveraging its marketing efforts, particularly in social media marketing at Booking.com. He noted that the brand has been increasing its spending on social media in a disciplined manner, allowing them to reach travelers on platforms they actively use. While Fogel did not delve into specifics, he hinted at a shift in strategy that has proven to be successful in generating better ROIs. Additionally, he highlighted the importance of bringing in customers to book directly and repeatedly, focusing on enhancing the overall planning, booking, and travel experience to encourage direct bookings.
As Booking Holdings continues to expand its “connected trip” capabilities, Fogel believes that generative artificial intelligence will play a vital role in enhancing this functionality. He mentioned that customers who make bookings across multiple verticals, such as flights, hotels, and car rentals, tend to have a higher repeat rate. With advertising revenue accounting for just 4.5% of total revenue in Q2, there is a significant opportunity for growth in this area. Steenbergen highlighted the potential for additional advertising income from the company’s apps, although finding the optimal balance between ad revenue and user experience remains crucial.
Despite a slowdown in room night growth in Q2, Booking Holdings saw a notable increase in airline ticketing, reflecting continued growth in flight offerings on platforms like Booking.com and Agoda. The company reported a 7% year-over-year increase in room nights booked, with a projected slowdown to 3- to 5% growth expected in Q3. Regionally, Europe and the United States experienced mid-single digit increases, while Asia saw growth in the mid-teens, and the rest of the world in the high single digits. Fogel remains focused on gaining market share and providing value to both travelers and suppliers, regardless of external market conditions.
Booking Holdings, under the leadership of CEO Glenn Fogel, continues to demonstrate resilience and adaptability in the ever-evolving travel industry. By focusing on alternative accommodations, enhancing marketing strategies, and exploring new revenue opportunities, the company is well-positioned for future growth and success. Fogel’s vision of providing a seamless booking experience for travelers and suppliers alike sets a foundation for sustained innovation and customer-centricity in the years to come.