Summary
A titan of the global tourism booking industry, Booking Holdings Inc will look to acquire other small websites and bring them under its umbrella. The firm enjoys robust network effects powering incredible unit economics and helping it take a slice of a tenth of all global tourism bookings. The industry was walloped by the pandemic but will continue to rebound. It is likely to return to its pre-pandemic trend within a few years. Inflation is high, and interest rates are rising. Consumers whose wallets will be squeezed will become increasingly frugal; this benefits Booking.com as travellers hunt for the best price online. Starting a dividend or acquiring a company like Trainline, Webjet, or Seera could catalyse the value revelation here.
Stock: Booking Holdings Inc common equity
Ticker: NASDAQ: BKNG 0.00%↑
Date: July 12, 2022
Market cap: $70.6bn
Rating: Add
Price: $1,735
Target: $2,885
Setting the stage
Booking.com is a global travel reservation business. It makes money by helping consumers book a…