US Internet 2Q26 Online Travel Preview: Booking Alternate Destinations

Research evidence excerpt

US Internet 2Q26 Online Travel Preview: Booking Alternate Destinations

Powered by Lab Global30 JulyResearch2026ab Evidence UBS YES

US Internet Equities

Americas2Q26 Online Travel Preview: Booking Alternate

Destinations Internet Services

Stephen Ju

Analyst

stephen.ju@ubs.com

Key Takeaways +1-212-882 5192

We preview 2Q26 earnings for Airbnb (ABNB), Booking (BKNG), Expedia (EXPE), Vanessa Fong

Tripadvisor (TRIP), and Trivago (TRVG). Despite the Iran conflict overhang at the start of Associate Analyst

the quarter, we gather incremental signs that consumers have begun to make vanessa.fong@ubs.com

adjustments after having anticipated travel corridors/destinations closed due to the +1-212-882 0079

onset of the war. Although the conflict is far from being resolved, we believe consumers Tarini Padmanabhan

continue to travel albeit likely closer to home or to alternate destinations. Otherwise Associate Analyst

demand for travel remains robust benefiting not only from seasonal summer travel but tarini.padmanabhan@ubs.com

also world cup events which should boost bookings particularly in North America. +1-212-713 1201

Booking Holdings may face greater challenges particularly in Europe but the optionality

remains that a significant proportion of these dollars were shifted to North America

given European travelers opting to reserve travel on a platform with which they are most

familiar. Our latest ad expert checks also suggest that the sector continues to see

recovery given the gradual recovery of marketing spend compared to the prior quarter.

Our Updated Thoughts:

Even as we raise price targets across the board, BKNG (Buy, PT $266) remains our top

pick given our conviction behind its ability to sustain its 8-8-15 growth formula despite