Booking.com continues to feel the effects of inflation on the U.S. travel market, as cautious consumers delay their vacation plans. According to Ewout Steenbergen, CFO of the online travel platform, demand has softened as travelers hold off on booking trips due to ongoing financial concerns.
In an interview with Bloomberg News on December 17, Steenbergen noted that the “booking window,” which tracks how far in advance travelers plan their vacations, has shrunk in the U.S. This suggests that consumers are opting to make decisions closer to their travel dates, likely as a result of inflationary pressures on their disposable income.
This trend stands in contrast to Europe, where travelers are booking further ahead, with many planning ski trips for February or holiday getaways during Easter, Steenbergen pointed out. His comments signal a slowdown in the travel industry, following a post-pandemic boom. As the largest online travel company by market value, Booking.com’s performance often serves as an indicator for broader industry trends.
Steenbergen also highlighted a “bifurcation” in demand within the U.S. market: luxury travel remains strong, while lower-income travelers are feeling the pinch. Many are opting for shorter trips or less expensive accommodations, trading down due to financial constraints.
Despite these challenges, Steenbergen expressed optimism for a rebound in the U.S. travel market. He expects conditions to improve once inflation’s impact is more fully absorbed into the economy. “At some point, we expect this to normalize and strengthen, particularly as consumers continue to prioritize short trips over other discretionary expenses,” he said.
In related news, Booking Holdings, the parent company of Booking.com, recently announced a companywide review, including potential workforce reductions and cost-cutting initiatives. The company plans to streamline operations by seeking real estate savings and optimizing procurement processes. These changes, it said, will improve efficiency, boost organizational agility, and free up resources for reinvestment in customer and partner offerings.
“We believe these efforts will help position the company for long-term success,” Booking Holdings stated in a regulatory filing. The company also confirmed it would consult with works councils and employee representatives about the expected impact of these changes.
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