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Booking Holdings (BKNG) to Boost Clientele With Taipei Deal

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Booking Holdings Inc.’s (BKNG - Free Report) subsidiary, Agoda, partnered with the Taipei City Government Department of Information and Tourism to serve as the Official Accommodation Partner for the World Masters Games (WMG).

Per the terms of the deal, Agoda now offers a dedicated booking page for the WMG, simplifying accommodation searches for competitors and visitors.

Additionally, Agoda will feature WMG on its Facebook page and travel guides to promote the event. It will also offer several discounts on accommodation in support of this collaboration.

Booking Holdings is expected to gain solid customer momentum in Asia on the back of this latest partnership.

Expanding Partnerships Aid Customer Momentum

The latest move is in sync with the company’s growing efforts to boost its clientele on the back of expanding partnerships and robust online travel booking offerings, which remain the key growth catalysts for the company. Its shares have gained 35.2% in the past year compared with the Retail-Wholesale sector’s 29.7% growth.

Apart from this large-scale government partnership, Agoda recently collaborated with DBS to introduce a reward points redemption system for Hong Kong customers. This deal will allow Agoda’s Hong Kong customers holding DBS$ and COMPASS Dollar credit cards to experience a seamless redemption while making hotel payments at the site, allowing insufficient point holders to reduce their booking costs.

This partnership will aid Booking Holdings to gain solid momentum across DBS customers in Hong Kong, further expanding its customer base in Asia.

Also, Booking Hodings’ subsidiary, Priceline, formed a long-term partnership with Amadeus to enhance its air distribution and IT capabilities, allowing Priceline to access content through the Amadeus Travel Platform.

Priceline can also access Amadeus' unique air content and a Custom Search solution, providing customers with personalized offers and driving growth in key performance areas like response time and conversion.

Booking Holdings’ growing endeavors to expand its customer base through collaborations will aid the company to capitalize on growth opportunities present in the global travel and tourism, as well as online travel booking market space. Per a Statista report, the global travel and tourism market is expected to hit $927.3 billion in 2024 and reach $1.06 trillion by 2028, indicating a CAGR of 3.5% during the forecast period of 2024-2028.

Per an MMR report, the online travel booking market is likely to reach $1.18 trillion by 2030, witnessing a CAGR of 9.7% between 2024 and 2030.

Solidifying prospects in these promising markets are expected to drive BKNG’s overall top-line performance in the near term.

The Zacks Consensus Estimate for 2024 revenues is pegged at $23.08 billion, indicating growth of 8% year over year.

Stiff Competition

The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against peers like TripAdvisor (TRIP - Free Report) , Airbnb (ABNB - Free Report) and Expedia Group (EXPE - Free Report) , which are also making continuous efforts to capitalize on growth opportunities present in the travel and tourism market space.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, Tripadvisor’s launch of an AI-powered travel itinerary generator for Trips, enabling personalized itineraries based on human insights from over a billion reviews and opinions from over eight million businesses on the platform, remains noteworthy.

Meanwhile, Airbnb introduced a new Extenuating Circumstances Policy in a bid to strengthen its presence in the travel and tourism market space by supporting travelers.

This policy offers cancellation and refund support for guests affected by major events like natural disasters, government travel restrictions, or weather. It overrides the host's booking cancellation policy, allowing guests to cancel reservations for refunds and without fees.

Expedia Group, on the other hand, collaborated with Tourism and Events Queensland, Tourism Tropical North Queensland, Tourism Northern Territory and Brisbane Economic Development Agency to enhance travelers' experiences, improve sustainable tourism and showcase Australia's unique culture, boosting its presence in the Asia-Pacific region.

Additionally, Expedia added IAG Loyalty to its clientele in the European region with its latest partnership. Per the terms, IAG Loyalty will leverage its competitive rates and availability in 25,000 destinations and 700,000 properties worldwide to expand the British Airways Executive Club and other loyalty programs.

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