r/stocks
BKNG is on sale now
Market overreacted to Iran war and oil prices; BKNG's commission-based model and strong income make it a great buy.
- Market overreacted to geopolitical tensions, misunderstanding the resilience of the travel business.
- Consumers will just switch destinations rather than cancel vacations when travel gets expensive.
- BKNG's commission-based model ensures revenue regardless of which specific airline, hotel, or destination is chosen.
The market really overreacted in regards to the Iran war, misunderstanding the travel business. It's true that high oil prices are going to have an impact on travel. But when travel gets more expensive, people don't give up on taking a vacation, they just choose a different destination.
Booking Holdings income is still going up. Overall the travel industry is not panicking at all about the war. Japan is still getting more and more tourists for example. Flights may be expensive but the yen is still cheap, making it an attractive destination. People are also becoming somewhat conditioned to search for good deals when there are disasters.
Some places and services will suffer from higher oil prices. But Booking Holdings will be collecting its referral fee no matter which destination, airline or hotel you choose. People aren't going to try new booking services because flights got more expensive.
say less, just ordered a whopper
Oil prices don't just affect the aviation industry. They affect almost everything, including food prices. This translates to increased cost of living, in other words, increased inflation. When the cost of living increases, people have less disposable income, which means less expenditure on travel.
It’s not just travel that is more expensive. Everything in life is getting more expensive. That has personally kept me from making travel plans. I can assure you I’m not alone in this. The expendable income is less and less because groceries have gone up so much. Just getting to the job everyday costs more.
I haven't been on a real vacation in forever because of the price but everywhere is packet and hotels are insanely expensive because of it. Reddit is too addicted to anecdotal comments.
Travel as been massively since COVID and has shown no signs of slowing down.
But when travel gets more expensive, people don't give up on taking a vacation they just choose another destination
Source: trust me bro
Down 18% and still a 23PE. i'll consider buying if it falls another 20%
That doesn't really seem like a big P/E to me. The average P/E for NASDAQ 100 is 35 right now, long term average 28.
They will most likely miss Q3 earnings