May 25, 2024

Booking Holdings Inc. BKNG is gaining from strong customer momentum on the back of expanding partnerships and robust travel booking offerings, which remain the key growth catalysts for the company. Its shares have gained 32.7% in the past year compared with the Retail-Wholesale sector’s 32.5% growth.

In this regard, Booking Holdings’ subsidiary, Agoda partnered with DBS to introduce a reward points redemption system for Hong Kong customers, enhancing their access to value travel deals.

Per the terms of the partnership, Agoda’s Hong Kong customers holding DBS$ and COMPASS Dollar credit cards can experience a seamless redemption while making hotel payments at the site, allowing insufficient point holders to reduce their booking costs.

Additionally, DBS Black World Mastercard cardholders can enjoy a 50% off conversion rate on DBS$1 equivalent to HK$2 and an additional 7% off on hotel booking payments throughout the year.

Booking Holdings is expected to gain solid traction across DBS customers in Hong Kong on the back of its latest partnership. This, in turn, will likely expand its customer base in Asia.

Booking Holdings Inc. Price and Consensus

Booking Holdings Inc. Price and ConsensusBooking Holdings Inc. Price and Consensus

Booking Holdings Inc. Price and Consensus

Booking Holdings Inc. price-consensus-chart | Booking Holdings Inc. Quote


Expanding Partnerships Aid Customer Momentum

Apart from the DBS partnership, Agoda collaborated with Meituan to boost the Chinese travel market by sharing hotel inventories, content and critical business domains.

The partnership includes joint “Chinese Preferred” hotels in 1,000 global destinations to offer Chinese travellers a wider range of cost-effective options, leveraging Agoda’s platform-exclusive accommodations at competitive prices on Meituan.

Booking Hodings’ subsidiary, Priceline, formed a long-term partnership with Amadeus to enhance its air distribution and IT capabilities, allowing Priceline to access content through the Amadeus Travel Platform.

Priceline can also access Amadeus’ unique air content and a Custom Search solution, providing customers with personalized offers and driving growth in key performance areas like response time and conversion.

Booking Holdings’ growing endeavors to expand its customer base through collaborations will aid the company to capitalize on growth opportunities present in the online travel booking market. Per an MMR report, the online travel booking market is likely to reach $1.18 trillion by 2030, witnessing a CAGR of 9.7% between 2024 and 2030.

Solidifying prospects in this promising market is expected to drive BKNG’s overall top-line performance in the near term.

The Zacks Consensus Estimate for 2024 revenues is pegged at $23.13 billion, indicating growth of 8.2% year over year.

Intensifying Competition

The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against peers like TripAdvisor TRIP, Airbnb ABNB and Expedia Group EXPE, which are also making continuous efforts to capitalize on growth opportunities present in the online travel booking market.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, Tripadvisor’s introduction of an AI-powered travel itinerary generator for Trips, enabling personalized itineraries based on human insights from over a billion reviews and opinions from over eight million businesses on the platform, remains noteworthy.

Meanwhile, Airbnb unveiled a new label feature to rank the top listed properties of the company with a badge, allowing customers to see the top 25% and 1% properties on the listing page. Additionally, the company will also mark the bottom 10% of properties with a badge, allowing users to sort reviews by lowest rating.

ABNB’s label feature is based on key metrics, such as subcategory ratings, review sentiment, host cancellations and quality-related customer service issues, enabling customers to choose wisely among a wide range of properties.

Expedia Group, on the other hand, unveiled the 2024 Expedia Travel Agent Affiliate Program spring sale offering, providing customers with a 25% discount on thousands of hotels worldwide for bookings made between Feb 20 and Mar 25, 2024, along with book-to-win incentives and a spring raffle for rewards points.

Further, Expedia partnered with Afterpay to improve booking experiences in Australia, offering flexibility in payments through Afterpay’s Pay in 4 product and allowing users to explore and book more than three million properties globally.

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