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Booking Holdings Stock: Benefiting From Strong Travel Demand (NASDAQ:BKNG)

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Young family having fun traveling together

Miniseries/E+ via Getty Images

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posting balances (NASDAQ:BKNG) has been one of the top compounders, with its stock price going from $50 in 2008 to over $2000 in 2020, a 4,000% increase. The company is the world’s leading provider of online travel and related products Services. It primarily operates through six brands including Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK and OpenTable. It is present in over 200 countries with over 100 million active users worldwide. However, the unprecedented pandemic of 2020 shattered the company as the entire travel industry shut down due to global lockdowns. With the company down 30% from its all-time high, I think this presents a good buying opportunity for investors while the company continues to recover.

As the pandemic eases and travel restrictions ease, Booking Holdings should benefit significantly from these tailwinds. It reports strong financial results and has a very solid balance sheet. Recent earnings from other travel companies also point to resilient travel demand and spending despite a slowing economy. The company also now trades at a historically low valuation. Therefore, I believe Booking Holdings is a buy at the current price.

BKNG stock chart
BKNG Data from YCharts

Strong results

posting balances reported very strong gains back in May, signaling a better than expected recovery. The company reported revenue of $2.7 billion, up 136% year over year (YoY) from $1.1 billion. Agency revenue was $1.5 billion, up 102%, dealer revenue was $1.1 billion, up 182%, while advertising and other revenue was $195 million, an increase of 282%. Bookings also posted robust growth, rising 129% year over year to $27.3 billion, the highest quarterly amount in the company’s history. The increase is largely due to improvements in overnight stay trends (up 100% YoY), higher overnight ADRs and significant growth in global air products.

Booking Holdings also returned to profitability during the quarter. Non-GAAP net income for the quarter was $161 million compared to a non-GAAP net loss of $($215) million in the year-ago quarter. Non-GAAP net income per share was $3.9 compared to a loss of $(5.3) per share a year ago. Adjusted EBITDA also increased to $310 million in the quarter from minus $195 million, for a margin of 11.5%. Operating cash flow improved significantly to $1.7 billion from minus $207 million. The operating cash flow margin was 63%. Unlike many other travel companies, which have vulnerable balance sheets due to heavy debt burdens, Booking Holdings’ balance sheet is very strong. It ended the quarter with $10.1 billion in debt and $10.6 billion in cash, more than enough to cover all of its debt.

Glenn Fogel, CEO, next Q1 results

“Despite an uncertain macroeconomic environment, so far in the second quarter of 2022 we have seen a continued strengthening in global travel trends and we are preparing for a busy summer travel season. I am encouraged by how well our teams are at capturing travel demand in this recreational environment and our progress in expanding our payments platform at Booking.com as we work towards our Connected Trip vision.

income from other companies

Recent earnings reports from travel companies indicate strong travel demand and spending as consumers are finally able to travel abroad after nearly two years of global border closures. Companies like Hilton (LDS), Visa (v) and American Airlines (EEL) all indicated stronger than expected travel volume during their earnings. Hilton reported revenue of $2.2 billion, up 68.4% year-on-year, American Airlines reported revenue of $13.4 billion, up 80.1% year-on-year, while Visa a reported cross-border volume growth of 40%. Management’s comments during the earnings calls are also very positive and encouraging. I believe that other companies’ optimistic forecasts for Booking Holdings should bode well as the company is set to report earnings on August 3rd.

Robert Isom, CEO of American Airlines, continued travel demand:

Leisure demand exceeded 2019 levels in the second quarter and customers continue to show us their growing desire to travel. Loyalty program enrollments continue to be at record levels and spending on our co-branded cards is growing faster than ever.

Vasant Prabhu, CFO of VISA, continued cross-border travel volume

The robust recovery in cross-border travel continued. Index to 2019, cross-border travel volume, excluding transactions within Europe, rose to 112 in June from 94 in March. This was helped by the opening up of much of Asia earlier in the quarter.

Number of Visa transactions

Visas

Convincing rating

After falling 30% from its all-time high, Booking Holdings is now trading at a very compelling valuation. The current PE ratio looks expensive at 156x, but that’s because it’s pricing in growth for the remaining quarters of this year. If we factor in EPS (earnings per share) growth, the company is actually trading at a FWD-PE ratio of 19.6x, which is historically undervalued. From the chart below you can see that the company has traded around an average PE ratio of 25x and almost never below 20x PE since the Great Financial Crisis.

With pent-up travel demand, the company is expected to continue its strong growth, which will further weigh on its valuation. According to Seeking Alpha analyst estimate, FWD 23’s PE ratio is forecast at 15.1x, a sharp discount compared to its historical average. The company’s share price is now trading at 2017 levels, but this year’s sales are expected to be up 41.7% from 2017. I believe the current valuation is attractive and a reversal in the average PE ratio will offer over 25% upside potential in the near term.

PE ratio of BKNG stock
BKNG PE ratio Data from YCharts

Outbreak of monkeypox

Monkeypox has been one of the latest hot topics. The virus outbreak first began in the UK earlier this year and is rapidly spreading around the world. It’s over now 22,000 cases worldwide with nearly 5,000 cases in the US alone. Health authorities around the world are very alarmed and vaccines are now on the way. I believe investors should monitor this closely as it could create significant headwinds for Booking Holdings.

Last Thursday, San Francisco and New York state of emergency declared about the disease, citing the rapid rise in cases over the past month. The statement will allow local authorities to mobilize more resources and personnel to combat the outbreak and speed up emergency planning. No emergency closures or restrictions are planned at this time as monkeypox is believed to be spread through very close contact. The scale and impact of this outbreak is still very small compared to COVID, but lockdowns or border closures may be possible if it continues to spread rapidly. This will once again bring the travel industry to a halt and significantly affect the company in the short term. I think the likelihood of this happening is remote, but it’s definitely a risk to be wary of.

Conclusion

In conclusion, I believe the current decline is unwarranted and long-term investors should take advantage of this opportunity. Although the stock price is close to 30%, Booking Holdings continues to see a robust recovery. It posted a very strong result with the highest booking amount in the company’s history. Sales increased by triple digits with strong growth across all revenue streams and the company returned to profitability. The results of other travel companies also indicate that the demand for travel remains very strong. The company is also now trading at a historically low valuation while continuing to benefit from reopening tailwinds. The recent monkeypox outbreak could bring unprecedented headwinds for the company, but the risk of it happening is very slim right now. Therefore, I rate Booking Holdings as a buy.



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In the coming three holidays, this route of Rishikesh may remain jammed, you can also choose this route.

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Everyone has made it their goal to travel during the three-day public holiday on August 15, there will hardly be anyone who will not use these public holidays. Though there are many places to visit near Delhi but if you want to visit Rishikesh with friends then let us tell you that in such place you can get a lot of crowd in these three days. In addition, you may have to face traffic jams when driving from Delhi to Rishikesh. In such a situation, today we will tell you some such routes, with the help of which you can to some extent avoid traffic jams.

Route 1: New Delhi – Meerut – Muzaffarnagar – Roorkee – Haridwar – Rishikesh via NH 334

For those who choose Route 1, it takes about 6 hours to reach Rishikesh via NH 334. Rishikesh is 235 km away from New Delhi. On this route, the road will take you through some important places like Meerut and Muzaffarnagar. The roads are in very good condition, it is easy to walk a short distance from here. In the coming 3 days holiday this place between Rishikesh and Nainital will be better, which place would you like to visit?

(Image credit: TOI.com)

Route 2: New Delhi – Hapur – Chandpur – Najibabad – Haridwar – Rishikesh Via NH 9

-2-9

If you choose route 2, it will take you around 7 hours to reach Rishikesh via the NH 9 and the total distance from New Delhi to Rishikesh is around 288 km. You can plan to visit here on the weekend, leave on Saturday morning and then rest in the evening and start your trip the next day. Then you can come to Delhi at night on Monday ie 15th August. These 6 countries will fulfill the dream of living abroad, lakhs of rupees will be given to the citizens upon their settlement

(Image credit: Economic Times)

Short stop in Meerut and Haridwar –

Coming from Route 1 you will see many Punjabi dhabas in Meerut. Here you can stop to have some breakfast water. This stopover is perfect from where you can eat delicious parathas. Once you reach Haridwar you can have your lunch by stopping here and also visit some ghats and famous temples here. This place is one of the holiest places in the country and large numbers of pilgrims come here to wash away their sins and seek blessings. Rishikesh is 25 km from here which you can reach in 45 to 60 minutes. Now that you have seen the place to visit, book a government guest house for less than Rs 1800

(Image credit: indiatimes.com)

How to reach – How to reach

-how to reach

Apart from the road, if you are thinking of traveling by train and plane, you can go this way.

By plane: Jolly Grant Airport is the nearest airport at a distance of 21 km. This airport is connected to many places across the country.

By train: Rishikesh railway station is well connected to the rail network and trains run from all over the country. I have seen many hill stations near Manali, Mussoorie, now see these magnificent hill stations near Dehradun

Places to visit in Rishikesh – Places in Rishikesh

-Places-in-Rishikesh

There are many places to see in Rishikesh but there are some places you can visit in a 1 to 2 days trip such as Beasi, Kaudiyala, Mun ki Reti, Bharat Mandir, Rishikund, Terah Manzil Temple.

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Why You Should Travel To Rajasthan In August

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Why You Should Travel To Rajasthan In August


Jaipur: The long weekend is just around the corner and if you haven’t planned a trip yet, add a visit to Rajasthan to your plans. With the onset of the monsoon season, the scorching heat of June and July is behind us and the weather is pleasant to visit the “Desert State of India”. In fact, the month of August is one of the best times to experience Rajasthan in all its verdant splendor that surrounds the state’s historic forts.Also read – Rajasthan: Woman fills in well with 4 children, all die; she survives

Why you should travel to Rajasthan in August

In August, Rajasthan enjoys light rains and comfortable temperatures of around 33 degrees Celsius due to the advent of monsoon rains. During this period the weather is just perfect – not too hot or not too cold. Also read – Explained: What is Lumpy Skin Disease That Killed Over 3,000 Cattle in Rajasthan, Gujarat?

Plus, the rain showers turn the state’s barren and arid land green, making up for the spectacular views. During this time, the view from the top of the forts and historical sites is one of lush greenery – a sight not to be missed. In addition, the rain and pleasant weather make the hard work to climb the summit worthwhile. Also read – Tina Dabi shares images showing Jaisalmer’s monsoon beauty after Rajasthan receives its heaviest rainfall in 66 years

Sightseeing in Rajasthan in August

Udaipur

This image shows the Ganges River in Udaipur. (Photo/AFP)

Udaipur – the city of lakes – is a sight to behold in August. The city has seven lakes including Fateh Sagar Lake, Lake Pichola, Swaroop Sagar Lake, Rangsagar and Doodh Talai Lake which are recharged by the monsoon rains. Travelers can book a stay at the Taj Lake Palace right in the middle of Lake Pichola for breathtaking views of the city. Aside from these beautiful lakes, the city is home to some of the country’s grandest palaces, which are major tourist attractions.

jalore

Jalore Fort (Source: Facebook)

Tucked away in Aravallis, Jalore is another great place to visit during the monsoons. During this period, the Aravalli forest is particularly spectacular after fresh rain showers. Jalore is also called the city of granite and majesty. Sundha Mountain, just outside the city limits, is a great place to visit and the views from the top are stunning. Make time for Jalore Fort and Swarn Giri Fort as well, they are some of the city’s top attractions.

Other

Garh Palace (Bundi) (Photo/ Pinterest)

A grand spectacle, Bundi is all about magnificent forts and ancient baoris (stepped reservoirs). During the monsoon these step reservoirs are filled with fresh water and make for a breathtaking view. Also, the hills around Bundi are revived with green vegetation and the rivers have swelled again after the rains.

Mount Abu

Mount Abu (India only/Getty Images)

The beautiful hill station in Rajasthan always enjoys pleasant weather and it’s even better during the monsoons. Mount Abu offers countless activities for tourists like trekking, hiking, zip lining to name a few. But if you want it to be a peaceful vacation, you can visit places like Guru Sikhar, Nakki Lake, Mount Abu Sanctuary, Toad Rock Viewpoint, Dilwara Jain Temple, among others.

jaipur

Hawa Mahel, Jaipur (Photo/Pinterest)

The Pink City shines in all its glory in August. After the monsoon showers have washed away all the dust and dryness of summer, Jaipur’s fantastic architecture looks like it has had a fresh coat of paint. The colors of the red sandstone monuments emerge after rain and Jantar Mantar, Hawa Mahal, Mandir Palace, Laxmi Narayan Temple, City Palace, Amer Fort, Jaigarh Fort, Rambagh Palace and other places look like they have get a new life.



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Top Things To Do In Jodhpur

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Located on the edge of the Thar Desert in western Rajasthan, Jodhpur continues to be a global tourist magnet. Jodhpur has been given several epithets such as Blue City and Sun City. The Rajasthanis affectionately call it Jodhana. The former capital of the Marwar kingdom is home to Rajasthan’s largest fort and several grand palaces, temples, gardens and markets full of old world charm and offers an amazing travel experience. Here we present you the best things to do in Jodhpur. By Karan Kaushik

Things to do in Jodhpur

Walk through the pages of history at Mehrangarh Fort

Mehrangarh, often touted as the citadel of the sun, stands tall and proud as Rajasthan’s greatest fortress. It was built by Rao Jodha in 1459. Perched on a sheer bluff 400 feet above the city, this burnished red sandstone structure is backed by many stories. Its beauty has attracted many admirers such as Rudyard Kipling; he called it “the work of giants.” Today it is widely regarded as one of the best preserved forts in India. The main attraction of the fort is its Museum. Miniature paintings, palanquins, weapons and valuable mementos of the royal family are on display here. The main attractions of the fort are Sangar Chowki, Zenana Mahal and Phool Mahal.

Go ziplining over the Blue City

The Flying Fox Zipline Tour in Jodhpur is an exciting experience that will stay in your memory forever. Former British Prime Minister Boris Johnson described this zip line as Jodhpur’s best part. “The zip lines send you around the moats and pinnacles like Batman,” he had said. The zipline takes you over two desert lakes and the Rao Jodha Ecopark, offering stunning views of Mehrangarh and the Blue City.

Rao Jodha Desert Rock Park

Located near the famous Mehrangarh Fort, this 72-hectare ecologically restored desert came back to life in 2006 after careful reconstruction. Rao Jodha Desert Rock Park, once an arid, decaying, barren land of vegetation, now boasts a local nursery, convenience store and cafe. Visitors can even hike trails amidst the 250 native plant species here and embark on a mission to spot several species of reptiles and over 200 birds along the way.

Revel in the Umaid Bhawan Palace

The magnificent Umaid Bhawan Palace has hosted prolific figures from around the world over the past few decades. The palace is a fine example of Indo-Saracenic architectural style and was named after and built by Maharaja Umaid Singh. It is also known as the Chittar Palace due to the use of Chittar sandstone in its construction. Interestingly, no mortar was used in the entire construction. Instead, hand-carved blocks of sandstone were interlocked. Today is part of the palace doubles as a hotel, while the others house model airplanes, guns, antique clocks, and priceless crockery for the public.

Admire the architecture of Rajasthan at Mandore Garden

Like Jodhpur itself, Mandore Garden has many names. Maddodara, Mandowar, and Mandavyapura-Durga are some of the oldest names all believed to have descended from Rishi Mandavya. Locals believe that the gardens were originally tended by Nagas, followed by Pratiharas, Chahamanas, Sultans of Delhi and finally Rathores. Today the garden is the site of many magnificent antiques temple, monuments and high rock terraces. The monoliths here date from the early fifth century. Indeed are two intricately carved monoliths depicting scenes from Krishna Leela were excavated in 1909-10. On the other side, the hilltop Mandore Palace and Fort date back to the sixth century. The highlight at Mandore Gardens, however, is the government-run museum, which houses artifacts and relics of historical importance.

Explore the twin lakes of Ranisar-Padamsar

These interconnected pristine waters are considered the twin lakes of Jodhpur and are located near Mehrangarh Fort. Both lakes date back to 1459 and were built with the intention of natural water conservation. Although it’s in a largely deserted area Condition, these lakes have a very unique quality – they rarely run out of water. Head here at the height of dawn to enjoy the water in all its glory and watch the towering fortress dance in the waves.

Take gram worthy photos in Jaswant Thada

Dating from 1899, Jaswant Thada is a famous cenotaph. While it now serves as the cremation ground for the Marwar Rajput royal family, it was originally built by Maharaja Sardar Singh of Jodhpur in memory of his father, Maharaja Jaswant Singh II. That cenotaph is built entirely of thin and intricately carved marble slabs. They have been polished to shine under the summer sun. The main cenotaph – that of Maharaja Jaswant Singh – is surrounded by portraits of rulers. In addition, the Jaswant Thada site features pavilions, a tiered garden, three other cenotaphs and a small lake.

Shop at the Clock Tower Market

No trip to Jodhpur is complete without going on a Shopping Spree. Enjoy hot Pjas Kachoris and Mirchi commander before you start splurging on everything Rajasthani. The Sardar Market in Girdikot is centered around the famous Ghantaghar or Clock Tower. The market sells everything from Jodhpuri mojaris to Lehariya Sarees, Dupattas, Safas, ethnic jewelry and more.

Plan a detour to Osian

Ossian or Osiyan is an oasis town in the Thar desert of Jodhpur district. Often referred to as the Khajuraho of Rajasthan, this historic city is famous for its Hindu and Jain temples. While here, visit the Jain Mahavira Temple which houses an idol of Mahavira made of cow’s milk, mud and a gold cloak. Then there is the Sachayee Mata Mandir, the most important Hindu temple in Osian. You may also fancy a camel safari or an ATV ride in the sandy terrain of Osian.

Feature Image Credit: Shutterstock; Hero photo credit: Makm Photography/Unsplash

Related: Looking for a cultural holiday? Drive straight to Rajasthan!



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