Booking Holdings bets on AI to cut costs and drive efficiency
Travel giant targets $450 million in savings by 2027, reinvesting in automation as U.S. demand softens
Booking Holdings is undertaking a major transformation initiative led by CFO Ewout Steenbergen to streamline operations and cut up to $450 million in costs by 2027. A significant portion of the savings will be reinvested into artificial intelligence projects aimed at automating internal processes and boosting efficiency.
Key takeaways
- Cost-saving goal: Booking aims to save up to $450 million by 2027, with $150 million expected in 2025.
- AI investment: Part of the cost savings will be reinvested into AI-driven automation and innovation.
- Operational focus: The company is focused on internal efficiency amid broader economic uncertainty.
- Demand outlook: Global demand is stable but showing signs of softening in the U.S. market.
- Financials: Q1 2025 revenue was $4.8 billion, up 8% YoY, with room nights and gross bookings both up 7%.
- Forecast update: Booking revised its full-year outlook to mid-to-high single-digit growth, citing geopolitical and economic uncertainty.
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