Online Travel Agency Stocks Slide Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy BKNG?
Source: Benzinga
- Significant Stock Decline: Booking Holdings has dropped 25% in February, marking its worst month since April 2010, while Expedia and Tripadvisor fell 32% and 24%, respectively, indicating investor concerns about the sector's future.
- AI Impact Intensifies: As consumers increasingly turn to AI assistants for flight and hotel searches, the traditional role of online travel agencies may be diminished, leading to pressure on market share and profit margins.
- Mixed Market Reactions: Despite the AI-driven selloff, Bank of America reiterated buy ratings on both Expedia and Booking, suggesting that the market's reaction to this trend may be overblown.
- Uncertain Industry Outlook: Until investors see evidence that OTAs can effectively integrate AI on their own terms, the sector may remain in a state of turbulence, impacting future growth and profitability.
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Analyst Views on BKNG
Wall Street analysts forecast BKNG stock price to rise
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 4153.870
Low
5407
Averages
6153
High
6850
Current: 4153.870
Low
5407
Averages
6153
High
6850
About BKNG
Booking Holdings Inc. is a provider of travel and restaurant online reservation and related services. The Company offers its services through five primary consumer-facing brands: Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Through its brands, consumers can book an array of accommodations (including hotels, motels, resorts, homes, apartments, bed and breakfasts, hostels, and other alternative and traditional accommodation properties) and a flight to their destinations; make a car rental reservation or arrange for an airport taxi; make a dinner reservation; or book a vacation package, tour, activity, or cruise. Consumers can also use its meta-search services to easily compare travel reservation information, such as flight, hotel, and rental car reservations from hundreds of online travel platforms at once. Booking.com offers accommodation reservation services for approximately 4.0 million properties in over 220 countries and territories and in over 40 languages.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technological Innovation Strategy: The company is leveraging generative AI for personalized travel recommendations and is encouraging customers to bundle hotels, car rentals, and attractions through its Connected Trip strategy, aiming to expand market share and enhance customer experience.
- Attractive Valuation: Following a nearly 30% pullback, Booking's valuation has become more appealing, with its forecasted P/E ratio for 2027 expected to be below 14 times, representing a 41% discount to its average P/E ratio over the past five years, attracting investor interest.
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- Travel Insurance Limitations: Standard travel insurance policies typically exclude coverage for disruptions caused by acts of war and military actions, leaving many insured travelers at risk of not being reimbursed for non-refundable expenses such as flights and hotels.
- Airline Flexible Policies: Airlines are offering flexible rebooking options for affected travelers; for instance, United Airlines allows passengers scheduled to fly through the Middle East to change their flights without incurring fees, which helps mitigate financial losses for travelers.
- Uncertainty of Future Conflicts: President Trump has projected that the military conflict may last four to five weeks but could extend longer, creating ongoing uncertainty that will continue to impact air travel and related economic activities.
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