Booking Holdings Inc.

Booking beat and raised guidance through 2025, then the Middle East conflict split travel in two: short trips held up while long-haul flying got scarce and dear. It has cut full-year guidance twice since and leans on buybacks to hold profit per share up. Did the second guidance cut come mostly from flights or rooms?

• The conflict, not demand, is what changed for Booking.

  Management cut full-year guidance at the midpoint twice in a row, and the second cut came mostly from fewer flight tickets, not weaker room nights. Long-haul Europe-to-Asia routes run through Gulf hubs, which carry the priciest trips. How much of the room-night loss fell on Europe-to-Asia routes?

• AI is now cutting real costs, not just running demos.

  Customer service cost per booking fell at a double-digit rate and that line shrank in dollars even as bookings grew, which management called proof the AI spending lands somewhere real. It is what funds the bigger reinvestment this year. How much of the customer service saving came from AI versus staffing cuts?

• Spending is rising faster than the sales it is meant to buy.

  Reinvestment rises to roughly $700 million for about $400 million of expected revenue, and the full-year margin gain was cut to nearly zero. Language-model referrals are still under 1% of room nights, so the payoff is a bet.