Bernstein issued a report on March 14, 2026, labeling generative AI a paradigm shift for online travel.
Analysts warn that AI represents a more significant threat to the sector than Google’s entry a decade ago. AI agents could compress profit margins and erode the competitive supply moat protecting Booking Holdings.
New AI platforms may diminish the cost advantages of scale by fundamentally restructuring the existing business model. Booking Holdings faces potential spending increases alongside disruptions to take rates and marketing efficiency.
Bernstein maintains a Market-Perform rating on the stock. The firm identifies terminal value risk as a primary concern for the company.