Booking and Expedia Face Only ‘Modest’ Hit From a Drop in Cross-Border Travel

Key Points

• A decline in cross-border travel is expected to have only a modest impact on Booking Holdings and Expedia due to their focus on local bookings.
• Booking Holdings is seen as best-positioned among online travel agencies, with limited U.S. exposure and historical resilience during disruptive times.
• Airbnb is considered more vulnerable in economic downturns due to less aggressive stock buybacks, no dividend payouts, and limited operational flexibility.

Summary

A BTIG report suggests that a drop in cross-border travel will moderately affect Booking Holdings and Expedia, as their primary business comes from local bookings. Booking Holdings is well-positioned due to its limited U.S. exposure and historical resilience, while Airbnb is more vulnerable in economic downturns due to less aggressive financial strategies.