Key Takeaways

  • Booking Holdings CEO Glenn Fogel said on Tuesday (Q2 2026 earnings call) that the company's push toward itsconnected travel vision—where travelers book multiple travel verticals with the company in a single trip—made progress in the second quarter.
  • Connected travel transactions grew by a low-double-digit percentage, more than double the growth rate of overall Booking.com transactions. Connected travel transactions accounted for a low-double-digit percentage of Booking.com's total transactions.
  • "This is important because our data shows that travelers who book across multiple travel verticals return more frequently," Executive Vice President and CFO Ewout Steenbergen said on the call.

Deep Dive

Booking Holdings, which owns Booking.com, Agoda, and Priceline, is deploying artificial intelligence and leveraging its loyalty program to advance its broader connected travel strategy. According to Fogel, customer engagement among higher-tier members of the Booking.com Genius loyalty program improved during the quarter.

Fogel said that Genius members who reach higher tiers "plan earlier, return more consistently, and have higher direct booking rates than non-Genius travelers." Level 2 and Level 3 Genius members accounted for more than 30% of the active customer base and contributed "approximately 55%" of room nights—up from the same period last year.

According to Fogel, Booking Holdings' AI customer service initiatives are reducing customer friction, lowering contact rates, and improving operational efficiency. The company has expanded voice AI support to most eligible inbound traveler calls and is expanding digital automation applications.

"Thanks to the combination of AI and human capabilities, customer service costs per booking continue to decline at a double-digit rate, while overall customer satisfaction remains high," Fogel said.

According to the earnings report, Booking Holdings reportedrevenue of $7.4 billion, up 8% year over year; total bookings increased 9% year over year.

Booking Holdings is driving AI discovery features across its portfolio. Booking.com is testing a new AI-driven discovery experience designed to help travelers in the early inspiration phase of trip planning. The feature offers flight prices, traveler reviews, and AI-generated insights such as best times to visit and itinerary suggestions.

Agoda launchedGallery View, which Fogel said "provides travelers with a more intuitive way to browse search results, pairing hotel images with relevant traveler reviews." Priceline is deploying the next generation ofPenny (its agentic AI travel assistant), integrating customer support and AI discovery features into a single tool.

According to Fogel, travelers using Penny have higher satisfaction. "That makes sense," he said. "If you give people a better way to do things, they'll be happier to use it."

Fogel said AI is already transforming the customer experience. "For example, initial tests of Penny's integrated hotel checkout experience show that incorporating more of the booking process into a single seamless experience has the potential to boost traveler engagement while driving stronger business outcomes," Fogel said. "These innovations are just a few examples of how we're using AI to reduce friction across the entire travel journey and advance our broader connected travel vision."

Regarding third-party AI, Booking Holdings remains confident. Fogel said: "While AI-driven recommendations currently contribute a relatively small portion of our overall business, we see encouraging momentum, which reinforces our belief that the strengths we've built over the years—helping travelers confidently find the right travel options—will position us well as travelers further shift toward AI-driven discovery."