Worldwide: Leading OTA Booking.com’s parent company Booking Holdings posted $699 million worth of losses in the first quarter of 2020.
The company also reported a drop in total bookings of 43 per cent for that quarter.
The company was able to book revenues of $2.3 billion, higher than expected for the period. However, this period does not include most of the losses due to the global pandemic, leading some investors to speculate worse results to come.
In the earnings meeting, Booking Holdings CEO Glenn Fogel said: “In March, our reported room nights declined over 100%, meaning we received more cancellations during that amount than new bookings. Looking at things a different way, our newly booked room nights, which exclude the impact of cancellations, were down over 60% year-over-year in March and down over 85% in April.
This gives you a clear indication of how much our business is currently impacted by this crisis.”
This news has led analysts to predict a 51 per cent dive in sales for 2020 in comparison to the twelve months prior. According to Simply Wall Street analysts, the wide gap in potential stock targets for the company may reveal a lack of certainty regarding the company’s future in the market.
Booking.com has already gone through significant trouble as a result of the pandemic. The company said in an internal memo it was planning major layoffs, even after receiving $4 billion loan injection from various investors.
It has also halted all rentals across the UK during the lockdown period after fielding criticism from various members of government. The company hopes that a potential immediate rebound in domestic tourism may help make up for declining total bookings.
Accoriding to Skift, Fogel said that domestic travel and alternative accommodations were already being prioritised in those countries with reduced lockdown restrictions. He added that the company was seeking to augment its liquidity and stabilise during this period.