Why Booking Has More at Risk From the Iran War Than Expedia

Key Points

• Booking Holdings is more exposed to negative impacts from the Iran war than Expedia due to its larger presence in Asia and Europe.
• Rising energy prices in Europe are expected to hurt Booking Holdings more, while Expedia may benefit from U.S.-based events and a stronger domestic market.
• The Iran war may encourage a shift toward domestic travel and create opportunities for online travel agencies to gain market share, though overall risks remain high.

Summary

A Truist Securities report indicates that Booking Holdings faces greater risks than Expedia from the Iran war due to its larger footprint in Asia and Europe, where rising energy prices and inflation are more pronounced. While Expedia may see benefits from major U.S. events and its strong domestic focus, Booking is likely to feel more adverse effects. The conflict may also encourage more domestic travel and provide online travel agencies with opportunities to increase their market share, though the overall outlook remains challenging.