Booking Holdings faces a challenging landscape as 2026 begins, marked by European regulatory pressures and rising competition from artificial intelligence. The company’s 2025 performance lagged behind key rivals.
This underperformance is attributed primarily to the European Union’s Digital Markets Act (DMA). The DMA has impacted Booking’s pricing strategies by limiting its use of 'price parity' clauses.
The regulatory environment combines with the rise of advanced AI travel agents from major tech giants. This shift is actively reshaping the online travel agency (OTA) market.
Analysts suggest a strategic pivot is necessary for Booking to regain momentum in 2026. This strategy requires accelerating its internal AI integration.
The company must also consider leveraging its cash reserves for acquisitions, focusing on the high-growth Asia-Pacific travel market. Investors will monitor Booking’s ability to adapt to these structural shifts.