Booking Holdings: The Glorious Travel Stock You'll Wish You'd Bought Before the Next Boom

Booking Holdings (NASDAQ: BKNG) is one company that operates in more than 220 countries with a wide menu of brands relating to travel or entertainment: Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable.

The company used to be a travel intermediary, with travelers paying the service provider, such as the hotel, upon arrival. In recent years, Booking has become the merchant of record, with the traveler paying it directly at the time of booking. This has allowed the company to bundle connected deals and increase its customer royalty while earning revenue from booking commissions, merchant fees, and advertising.

The stock, which had a 25-for-1 split on April 2, is down more than 16% so far this year. Its shares were already languishing because of concerns that artificial intelligence (AI) agents (such as ChatGPT, Gemini, or Claude) could eventually handle travel planning and booking directly with service providers, cutting out middlemen.

To add to Booking's woes, on April 22, the Italian Competition Authority launched a probe into Booking.com over alleged unfair commercial practices. The company was already hit with a 413 million euro antitrust fine in Spain in 2024, though it is appealing that decision.

Despite those concerns, here are three reasons why now might be a good time to buy the stock:

Image source: Getty Images.

It is already ahead of the curve with AI agents

The company is already using AI agents on all of its sites. Instead of competing with companies on AI travel agents, Booking is collaborating with tech companies such as Alphabet, Amazon, OpenAI, and Microsoft on their agentic plans. The scale of Booking's vertical integration gives it an edge because it already has access to proprietary data, resources, and a vast scale to help consumers plan trips.

Part of that is due to the company's Genius loyalty program, which includes discounts on pricing, free room upgrades, free breakfast, and other perks. In 2025, 50% of its bookings came from Genius members, who accounted for 30% of Booking's active travelers.

It is showing strong financial momentum

In 2025, the company reported revenue of $26.9 billion, up 13%, and adjusted earnings per share (EPS) of $228.6, up 22%. That growth was driven by cost savings from increased use of AI agents and by Booking's broader strategy beyond hotel rooms. Airline ticket bookings rose 37%, to 68 million tickets.

The company also saw multivertical transactions, where travelers booked flights, hotels, and cars, in the high 20% range, showing a rise in customer loyalty.

Booking is also joining the alternative accommodations party. While companies such as Airbnb are facing increased urban regulations, Booking Holdings saw its alternative accommodations bookings rise to roughly 36% of all room nights booked on its platform. Its total listings for alternative accommodations reached a record 8.6 million in 2025, up 8%.

Looking forward, the company predicts high-double-digit revenue growth in 2026 and even better growth for its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

Regional travel growth in Asia and the U.S.

Cross-border travel in China and Southeast Asia is expected to continue to rise in 2026. In the U.S., Booking made inroads thanks to its investment in its Genius loyalty program and brand marketing. The company is investing heavily in marketing in both areas and said it expects that growth to continue this year.

One concern regarding demand, though, is what impact the current situation in the Middle East will have on prices, particularly with a looming shortage of jet fuel in Europe. Higher prices could suppress travel demand, leading to fewer trips and shorter stays, and cut significantly into Booking's revenue.

Still a solid play in the travel sector

Booking Holdings is transitioning from a high-growth disruptor into a mature, highly efficient financial engine. Despite its year-to-date pullback, its fundamentals remain the strongest in the travel sector.

The company's merchant-model pivot and connected trip strategy offer a clear five-year roadmap, though European Union regulatory hurdles and AI-driven disintermediation loom as significant risks. Ultimately, Booking is a bet on the permanence of global travel and the dominance of a platform that has become an essential utility for travelers.

James Halley has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Airbnb, Alphabet, Amazon, Booking Holdings, and Microsoft. The Motley Fool has a disclosure policy.