Booking's Network Advantage and Demand Remain Resilient Despite Some Macroeconomic Concerns

Although softer US consumer sentiment presents a near-term headwind, Booking's leading network of hotel properties and other services continues to expand in developed and emerging markets, as well as vertical markets such as rentals, attractions, flights, and payments (where it looks to focus on near-term investment), resulting in a fully connected trip offering. In developed markets, replicating Booking’s leading network in Europe is proving costly and time-consuming for key competitors, given that around 60%-65% of all hotels in the region are small boutique establishments. In emerging markets, the firm has a presence in China with its Trip.com and Meituan-Dianping partnerships, and in its own Booking.com and Agoda.com platforms, which are crucial. This expanding network positions Booking well for the increasing global shift to booking via mobile applications.