Booking (BKNG) Q3 2026 Earnings Call: Q&A Summary

Q: Doug Anmuth asked about tangible AI progress, specifically top-line benefits like conversion or frequency, and differences in newer agents like Muse and Grokbot.

A: Ewout Steenbergen highlighted four areas of improvement: higher engagement, higher conversion, higher booking value, and incrementality. He noted that while traffic from newer agents is accelerating, it remains significantly below 1% of total room nights.

Q: Mark Mahaney asked about the strategy behind the Muse partnership with Agoda and the reasons for marketing deleverage in the B2B segment.

A: Glenn Fogel stated that the company works with all players and that some agreements simply move faster than others. Ewout Steenbergen explained that B2B marketing deleverage is due to commission structures based on revenue share, which is a healthy indicator of business growth.

Q: Matt Cost asked if AI agents are merely a convenience for existing travelers or if they are generating incremental demand by reducing friction.

A: Glenn Fogel noted that while it is early, AI agents could become a significant channel for acquiring business at a lower cost. He emphasized that the company's goal is to use AI to make the connected trip easier, ensuring travelers choose Booking first.

Q: Alex Bruno asked about the components of B2C marketing leverage and the potential impact of the Digital Markets Act on Google search results in Europe.

A: Ewout Steenbergen attributed B2C leverage to disciplined management of paid channels and growth in direct traffic. Glenn Fogel noted that the company has not yet seen a significant advantage from the DMA and highlighted that complex regulatory frameworks in Europe might slow the adoption of horizontal personal agents.

Q: Justin Post asked if AI agents might preference direct sites over OTAs and requested details on 2027 investment plans.

A: Glenn Fogel argued that the company provides superior value to both travelers and partners, which will ensure they remain competitive. Ewout Steenbergen stated that the company will continue to make disciplined long-term investments while protecting profitability, noting that 2027 guidance will be provided in February.

Q: Benjamin Black asked how the Genius program will evolve without relying on supplier-funded discounts and if AI-driven efficiency could allow the company to outperform its long-term EPS algorithm.

A: Glenn Fogel stated that the company plans to improve Genius by providing more value to both travelers and partners. Ewout Steenbergen noted that while AI is delivering measurable value, it is too early to determine if it will change the long-term EPS algorithm.

Q: Meredith Jensen asked how changes in the distribution landscape might open new doors for collaboration between Booking and hotel suppliers regarding loyalty programs and guest recognition.

A: Glenn Fogel emphasized the importance of network effects and stated that the company is exploring ways to provide more value to both sides of the network, which will help keep the Genius program competitive.