Booking Holdings’ Third Quarter Report: AI Integration and Strategic Growth Propel Earnings Beyond Expectations

Published on October 29, 2025

Booking Holdings’ third-quarter report for 2025 has shown impressive results, driven by a strategic focus on AI integration and continued growth. The company, which owns major platforms like Booking.com and Kayak, has exceeded earnings expectations, thanks to these innovative efforts. By partnering with OpenAI, Booking.com has integrated cutting-edge AI technology into its services, enhancing the user experience and streamlining the travel booking process. This integration has not only improved efficiency but also led to faster search results, better conversions, and higher customer satisfaction. At the same time, Booking Holdings has seen strong growth across key markets. The strategic growth efforts in regions like the U.S. and Asia have further strengthened the company’s market leadership. Overall, Booking Holdings’ third-quarter performance showcases its ability to innovate while driving sustainable earnings growth, positioning itself well for the future of the travel industry.

Booking Holdings Inc. reported strong third-quarter results for 2025, surpassing Wall Street expectations. The company, which owns brands like Booking.com, Kayak, and OpenTable, posted gross bookings of $49.7 billion, a 14% year-over-year increase. Adjusted earnings per share reached $99.50, exceeding analyst estimates of $95.66, while total revenue climbed 13% to $9.01 billion.

AI Integration with OpenAI

A significant development during the quarter was Booking.com’s partnership with OpenAI. The company joined the initial group of partners integrating their services into ChatGPT’s new app ecosystem. CEO Glenn Fogel expressed enthusiasm about this collaboration, highlighting the opportunity to enhance travel planning through AI-driven tools. The integration aims to provide users with personalized travel recommendations and streamline the booking process.

Chief Financial Officer Ewout Steenbergen noted early positive indicators from the AI integration, including faster search times, improved conversion rates, reduced cancellation rates, and high customer satisfaction. These early signals suggest that AI enhancements are contributing to a more efficient and user-friendly experience on Booking.com’s platform.

Regional Growth and Market Dynamics

The company’s global reach contributed to its robust performance. In the United States, bookings grew in the high single digits, driven by stronger outbound travel and momentum in the B2B sector. Europe also experienced high single-digit growth, while Asia and the rest of the world saw low double-digit increases.

Despite the growth, there are concerns about hotels bypassing online travel agencies (OTAs) and direct bookings. Fogel acknowledged this trend but expressed confidence that OTAs like Booking.com will continue to provide essential services, such as transaction fulfillment, value assurance, and regulatory compliance, which are complex for individual hotels to manage independently.

Financial Performance and Outlook

Booking Holdings’ financial performance in Q3 2025 demonstrated operational efficiency and strategic growth. Adjusted EBITDA increased by 15% year-over-year to $4.2 billion, reflecting a 120 basis point expansion in adjusted EBITDA margin to 47.0%. Net income rose 9% to $2.7 billion, and free cash flow grew 76% to $2.3 billion, indicating strong cash generation capabilities.

Looking ahead, the company projects fourth-quarter gross bookings to increase between 11% and 13%, with revenue growth expected between 10% and 12%. Adjusted EBITDA for Q4 is anticipated to be between $2.0 billion and $2.1 billion, reflecting continued growth and operational leverage.

Conclusion

Booking Holdings’ third-quarter performance underscores its strong position in the online travel industry. The integration of AI technologies, particularly through the partnership with OpenAI, enhances the user experience and operational efficiency. With robust growth across key regions and a positive financial outlook, the company is well-positioned to navigate the evolving travel landscape.

Source: Phocuswire