Guess Who‘s Back, Back Again - In 2Q

Research evidence excerpt

Guess Who‘s Back, Back Again - In 2Q

Equity Research

6 July 2026

Online Travel

Guess Who's Back, Back Again - In

2Q

We have a favorable view towards the online travel space U.S. Internet

heading into 2Q earnings as expectations are low, Middle East POSITIVE Unchanged

tensions are in cooling-off mode, and we are already seeing U.S. Internet

Ross Sandlersigns of travel demand picking up. At mid-teens P/E with

improving fundamentals, we would add to positions here. +1ross.sandler@barclays.com415 263 4470

BCI, US

The Key Takeaway: The backdrop for OTA stocks is favorable right now based on: 1) travel Alex Hughes

demand picking up into the summer season, 2) consensus estimates that appear low given that +1 212 526 3069

management teams guided when Middle East tensions (and jet fuel prices) were much higher, alexander.hughes@barclays.com

and 3) attractive valuations at mid-teens P/E. Industry data we track (see our Quarterly Travel BCI, US

Tracker below) implies demand was healthy despite some impairment early in the quarter. Michael DiSanto

Elevated airfare is coming down, capacity is improving, and U.S. domestic travel looks +1 212 526 1054

particularly solid as evidenced by TSA/CBP passenger volume. Persistent revPAR strength is michael.disanto@barclays.com

another indication of a healthy domestic demand backdrop (link). Notably, even midscale/ BCI, US

economy revPAR is positive in 2Q after being under pressure much of last year, while the high- Alexander Kessinger

end continues to accelerate. With this domestic strength and the World Cup, we think stocks +1 212 526 1324

with the highest relative exposure to U.S. domestic trends (ABNB/EXPE) are well positioned alexander.kessinger@barclays.com

near-term.