Booking Holdings Launches KAYAK Ask AI as Shares Slump 16% YTD
KAYAK launched Ask AI ahead of the World Cup, driving a 23% rise in U.S. host-city flight searches and hotel prices up 119% in Mexico. Booking processed $186 billion in gross bookings, but shares are down 16% YTD and trade at a forward P/E of 16.8x versus a 31.6x median.
1. Kayak Introduces Ask AI
Kayak rolled out Ask AI, a conversational planning tool that updates flight, hotel and rental car options in real time within a chat interface. The feature streamlines multi-city trip planning by allowing users to refine itineraries using natural language while viewing live pricing from hundreds of partners.
2. World Cup Travel Trends Surge
Data shows a 23% increase in flight searches to U.S. host cities year-over-year, with Kansas City searches up 168%. Hotel rates have risen 36% in U.S. markets, 55% in Canada and 119% in Mexico, prompting a new dashboard to monitor fan travel interest and price shifts.
3. Valuation Reset Sparks Stock Dip
Shares have fallen 16% year-to-date, pushing the stock to a forward P/E of 16.8x compared to a five-year median of 31.6x. This contrast highlights a valuation gap versus peers like Airbnb, which trades at 35x despite lower revenue scale.
4. Financial Performance and Outlook
Booking processed $186 billion in gross bookings and reported $26.9 billion in revenue for 2025, up 13% year-over-year, though growth is expected to slow to 9%–11% in 2026. The company targets $550 million in savings through its Transformation Program, holds $21 billion in buyback authority, and will release Q1 earnings on April 28.