AI Can Plan the Trip but Booking Holdings Wants the Transaction

Generative artificial intelligence (AI) can recommend a hotel, assemble an itinerary or suggest a cheaper travel date. It cannot independently guarantee inventory, calculate cancellation terms, authenticate a customer, manage currency conversion or settle funds with multiple suppliers.

That side of the business—the commercial infrastructure—is what Booking Holdings executives told investors they were focusing on during Tuesday’s (Aug. 4) second quarter 2026 earnings call.

“We remain focused on what we can control—building better experiences for travelers, creating greater value for our partners, and strengthening our business for the long term,” said Glenn Fogel, CEO of Booking Holdings. “Despite continued geopolitical and macroeconomic uncertainty during the second quarter, the underlying desire to travel remained resilient, and we are pleased with our results, which reflect the strength of our global platform and the disciplined execution of our teams.”

Booking Holdings reported an 8% increase in revenue from a year earlier to approximately $7.35 billion, exceeding the consensus estimate of roughly $7.19 billion. Gross bookings rose 9% to approximately $51 billion, while room nights increased 5%, and travel demand remained resilient despite macroeconomic uncertainty and continued disruption in the Middle East. The company maintained its full-year expectation for high-single-digit revenue growth and low- to mid-teens adjusted earnings growth.

Booking Sees Payments As the Connected Trip’s Control Layer

Traditional online travel agencies were built around search. A customer entered a destination and dates, compared a ranked list of hotels and completed a reservation. The platform’s primary economic role was matching demand with inventory. AI allows Booking to move closer to coordinating the entire journey.

Rather than functioning solely as an advertising or reservation intermediary, Booking can manage how customers pay, how suppliers receive funds and how refunds, cancellations and changes are handled. The company can also embed loyalty benefits and merchandising offers across multiple travel categories.

Booking’s connected-trip strategy is designed to link accommodations with flights, rental cars, attractions and other services. During the second quarter, transactions containing more than one travel category grew in the low double digits and expanded more than twice as fast as Booking.com’s overall transaction volume.

Merchant gross bookings represented approximately 73% of total gross bookings during the quarter, four percentage points more than a year earlier. Management described payments as the “glue” connecting the company’s travel products because they create a more consistent checkout experience while generating additional contribution-margin dollars.

Booking’s Supplier Tools Turn AI Into a B2B Product

Booking Holdings already operates platforms spanning accommodations, flights, restaurants, rental cars and travel search, including Booking.com, Priceline, Agoda, KAYAK and OpenTable. The company describes its platforms as using AI and machine learning to personalize travel for consumers and partners across more than 220 countries and territories.

Booking Holdings has deployed voice AI across the majority of eligible inbound traveler calls and is using automation, analytics and real-time agent assistance to resolve customer issues. Customer-service cost per booking is declining at a double-digit rate while satisfaction remains high, management said. The company is also developing tools that help accommodation providers respond to guests, improve property content and operate more efficiently. AI-powered messaging can answer common traveler questions more quickly, while data and personalization tools can help properties present their inventory more effectively.

That creates a B2B distribution proposition. Suppliers gain access to demand, payments, customer-service infrastructure and automation through one platform. Booking Holdings gains more consistent data and greater control over the customer experience.

Booking’s Genius loyalty program strengthens that dynamic. Higher-tier members represented more than 30% of active customers and generated a high-50% share of room nights during the quarter. They also returned more frequently and booked through direct channels at higher rates than non-Genius travelers.

AI may change where a traveler asks the first question, but it does not eliminate Booking Holdings’ need to authenticate the customer, collect funds, pay suppliers, manage disputes and support the transaction when something goes wrong.

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