On Thursday, Booking Holdings announced its low first quarter results, still beating estimates helped by more robust demand.
Its stock price went down by -1.61% to $2,603.57 per share on May 04. Likewise, it is bound to decline by -3.48% to $2,513.00 apiece in the upcoming session.
The company’s earnings per share dropped to $11.60 but surpassed analysts’ $10.67 forecast. Nonetheless, it is lower than the previous $24.74 data.
Moreover, the revenue of Booking fell to $3.80 billion, topping the $3.76 billion consensus. Therefore, the latest reading is below the former $4.00 billion figures.
Also, it posted its first-quarter net profit of $266.00 million or $7.00 per share compared to a $700.00 million loss.
Significant players in the hospitality industry in recent quarters benefitted from flexible work arrangements. It helped them balance high labor and expenses for maintenance.
According to the CEO of Booking, there is a solid start to the year with Q1 room nights and gross bookings. Additionally, these factors hit their highest quarterly levels as they exceeded their previous expectations.
Some industry experts have confidence about the demand in the near term. However, high inflation and issues toward a possible slowdown threaten consumer spending.
The previous month, a US hotel operator hinted a weaker travel demand for the year’s second half.
AI Usage to Help Booking
Booking Holdings plans to make more online travel advances by using artificial intelligence (AI).
A form of AI called generative AI can improve travel searching, getting reservations, and customer service.
On the other hand, some analysts have concerns about the future of Booking since significant technology jumps can be disruptive.
Based on the company’s CEO, generative AI can be utilized for the productivity growth of its software developers.
Moreover, Booking hopes to apply the super-charged AI to its long-term goal of having a connected trip for customers. In addition, the CEO feels confident since they have already worked with AI in the past.
