Booking Holdings (BKNG Quick QuoteBKNG - Free Report) reported third-quarter 2024 earnings of $83.89 per share, beating the Zacks Consensus Estimate by 7.63%. The figure rose 16% year over year.

Revenues of $7.994 billion beat the Zacks Consensus Estimate by 4.76% and increased 8.9% year over year on a reported basis and 9% on a constant currency basis. 

Third-quarter gross bookings increased 9%, which was approximately one percentage point higher than the 8% room night growth due to about two percentage points from higher flight bookings growth, partially offset by a decrease in constant currency accommodation ADRs of less than 1%.

Merchant bookings were $28.4 billion, up 27.3% year over year. Agency bookings were $15.1 billion, down 14% year over year.

Growth Momentum Across Core Business Segments

Booking Holdings demonstrated robust performance across multiple business segments in the third quarter of 2024, driven by strategic initiatives and expanded service offerings. The company's room night growth exceeded guidance by 3 percentage points, reaching 8% overall growth, primarily attributed to improved European market conditions beginning in August and an expanded booking window compared to 2023 expectations.

Regional performance showed varied strength, with Asia leading at low double-digit growth and Europe achieving high single-digit increases, while other global regions and the U.S. market demonstrated mid-single-digit and low single-digit growth, respectively.

Alternative accommodations emerged as a particularly strong growth driver, with Booking.com's alternative accommodation segment outperforming the overall business with 14% room night growth. This segment now represents 35% of Booking.com's global mix, marking a 2 percentage point increase from the previous year. The platform's alternative accommodation listings expanded to 7.9 million properties, reflecting a 10% year-over-year increase, which contributed to enhanced customer choice and segment growth.

Complementary travel verticals showed significant expansion, with airline ticket bookings increasing 39%, driven by enhanced flight offerings through both Booking.com and Agoda platforms. The rental car segment also demonstrated strong performance with a 16% increase in booked days, primarily fueled by Booking.com's growth. Both these verticals exceeded expectations and showed acceleration from the second quarter.

Strategic initiatives, including alternative accommodation growth, connected trip vision advancement, AI capability development and Asian market expansion, contributed to improved customer experience and supplier partner benefits. These developments reflect the company's successful execution in enhancing its comprehensive travel service platform while maintaining growth across diverse market segments.

What Should Investors Do With BKNG Stock?

Booking Holdings’ continuing efforts to bolster its market position and strong prospects in the promising e-commerce market are expected to benefit its top-line growth in the near term.

The Valuation Score of B suggests that BKNG shares are cheap at this moment.

However, the stiff competition and challenging macroeconomic conditions are headwinds. Stiff competition from the likes of TripAdvisor (TRIP Quick QuoteTRIP - Free Report) , Airbnb (ABNB Quick QuoteABNB - Free Report) and Expedia Group EXPE, which are also making continuous efforts toward bolstering travel initiatives, pose a risk to BKNG’s market position.

Given the bright prospects of Booking Holdings, existing shareholders should maintain their positions while new investors should wait for a more favorable entry point.

Booking Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.