Booking Holdings (BKNG, Financial) saw a 4% rise in shares after a robust Q4 performance, driven by strong travel demand. The company, which owns brands like Booking.com, Kayak, and OpenTable, reported an impressive earnings beat and increased its dividend by 10%. Peers Expedia Group (EXPE, Financial) and Airbnb (ABNB, Financial) also benefited from the travel surge, with positive outlooks for continued demand.

• BKNG posted adjusted EPS of $41.55 and a 14.4% year-over-year revenue growth to $5.47 billion, surpassing its previous quarter's 8.9% increase. Room nights grew by 13%, exceeding BKNG's forecast of 6-8%. Gross bookings rose by 17%, far above the 7-9% forecast.
• For the year, BKNG exceeded its long-term growth targets, achieving gross bookings growth of at least 8% and constant currency-adjusted EPS growth of 15% or more.
• BKNG's alternative accommodations saw a 19% increase in room nights, outpacing the overall business. This growth was attributed to a strong supply and the platform's ability to offer both traditional and alternative accommodations.
• Looking into 2025, BKNG remains optimistic, expecting Q1 room night growth of 5-7% and gross bookings growth of 5-7%, despite a 4-point impact from foreign exchange headwinds.
• BKNG aims for constant currency growth rates above long-term estimates in FY25, driven by consumers' preference for travel experiences.
• AI is central to BKNG's future plans, with AI-powered offerings like travel-specific agents enhancing customer experiences. The integration of Gen AI into services like Booking.com's AI Trip Planner and Priceline's AI assistant is underway.
• AI is also expected to slow the growth of BKNG's fixed expenses by boosting operational efficiency in 2025.

BKNG is capitalizing on the robust travel demand, maintaining strong bookings growth while integrating AI to enhance its competitive edge. Despite competition from ABNB and EXPE, BKNG is adapting swiftly and leveraging AI advancements to strengthen its market position.