Booking Holdings reported that Canadians, and Europeans to a lesser extent, shifted away from traveling to the U.S. in the first quarter, similar to what the U.S. Travel Association has found.
Booking Holdings CFO Ewout Steenbergen said during the company's Q1 earnings call on April 29 that Canadians are largely traveling to Mexico instead of the U.S., and Europeans are traveling to Canada, Asia and destinations in Europe.
"For us, it doesn't matter," he said. "We are agnostic to where they are traveling because usually they're spending the same amount, just at another destination."
Overall, Steenbergen reported "very stable demand" globally from January through March, with no economic impact on Booking Holdings' business.
In the U.S., however, the OTA is seeing signs of belt-tightening.
Globally, Booking Holdings saw a year-over-year increase in length of stay, according to Steenbergen, but length of stay for U.S. travelers decreased. That could be an indicator Americans "are becoming more careful with their spending."
Additionally, the CFO said luxury and upscale hotels in the U.S. are showing more resiliency than midscale and economy hotels in the first quarter. That dynamic was unique to the U.S.
CEO Glenn Fogel is confident in Booking Holdings' ability to navigate any downturns in travel.
"While we are encouraged by our first-quarter results and the relative stability of trends we have seen so far in the second quarter, we fully recognize the current geopolitical and macroeconomic uncertainty, and concerns about the strength of consumer demand," Fogel said.
Fogel said Booking Holdings is well positioned to weather any storms because of its "global diversification, substantial liquidity, strong free cash flow and historical record of executing effectively."
Booking Holdings recorded 319 million room nights in the first quarter, up about 7% year over year.
Revenue in the first quarter was up 8%, to $4.8 billion, and adjusted EBITDA grew 21%, to $1.1 billion. Both metrics exceeded the high end of Booking Holdings' prior guidance, Fogel said.