Why Booking Shares Could Rise 41% in a Slowing Travel Market

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The travel website has high margins, low overhead, and lots of free cash flow. The current business has deep strengths in Europe and its rolling out new...

Travel can be hard, as anyone who has had a flight canceled recently can tell you. Booking Holdings makes investing in travel easy.

Booking isn’t a little-known destination for investors. The stock has gained 50% in 2023, to a recent $3,040, driven by total bookings, which rose 15% to $39.7 billion in the second quarter. It’s fair to wonder if all the gains are already in the stock, particularly amid signs that travel could start to slow.Booking, though, is more than just a simple play on the travel market. The advantage it gets from Europe is what sets it apart from Expedia and other travel sites. U.S.

Despite its success, Booking isn’t getting complacent. It’s betting on what it calls “connected travel,” providing everything from the flight and the hotel to the car that gets travelers to and from the airport. It’s also using artificial intelligence to make it easier for customers to find what they want. In the long term, these efforts will boost company profits by keeping consumers coming to what is increasingly an all-in-one website.

 

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