On Friday, BTIG maintained a Neutral stance on Booking Holdings (NASDAQ:BKNG), with a focus on the company's current quarter-to-date (QTD) performance and its upcoming adjustments to comply with the European Union's Digital Markets Act (DMA). According to the firm's assessment, Booking Holdings appears to be on track with its previously issued guidance.
Booking Holdings reported that room nights in January saw an increase of over 6%, and data tracked by BTIG for February indicates a 5.5% rise, which has been slightly boosted by the additional day in the month. For March month-to-date, growth is noted at around 3%.
These figures suggest that the company is likely to achieve its room night growth target of approximately 6%, aligning with the guidance range of 4-6% after accounting for the usual differences between tracked data and reported nights.
The firm also addressed Booking Holdings' need to modify its hotel contracts within the EU to adhere to the DMA's regulations. Specifically, the company is expected to eliminate rate parity clauses in these contracts later in the year.
Despite potential concerns about the impact of these changes, BTIG does not perceive them as a significant threat to Booking Holdings' business.
Booking Holdings' efforts to align with the DMA indicate its commitment to regulatory compliance in the European market. The company's ability to stay within its growth guidance for room nights demonstrates a steady performance in the face of regulatory changes.
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