Key Facts
- CEO
- Glenn Fogel
- Quarter
- Q2 2026
- SEO Pressure
- Attributed to Google's AI Overviews
- Direct Traffic
- Mid-60% range, unchanged
- Paid Search Spend
- Billions annually
Background
Booking Holdings, the parent company of Booking.com, faces increasing pressure on its organic search results from Google's AI Overviews, according to CEO Glenn Fogel. Speaking during the company's second-quarter earnings call on Tuesday, Fogel noted that changes in Google's display have 'definitely put some pressure on SEO.'
AI Overviews are summaries generated by Google that appear at the top of search results pages, often reducing the visibility of traditional blue links. This shift has implications for travel companies that rely on organic search traffic to reach customers.
Booking Holdings spends billions of dollars annually on paid search, which constitutes a much larger portion of its business compared to SEO. Despite the SEO pressure, Fogel emphasized that direct traffic, which accounts for the mid-60% range of overall traffic, 'hasn't gone down at all.'
Current Situation
During the earnings call, Fogel acknowledged the impact of AI Overviews on organic search, stating, 'I do believe that some of the changes that were made in the display at Google definitely put some pressure on SEO.' He expressed his displeasure at 'losing SEO' but noted that the overall effect on business remains small.
The company is actively exploring ways to secure prominent placement within major AI models like ChatGPT and Gemini, though Fogel admitted that no travel business has yet found a consistent solution. 'As these platforms evolve, such an achievement becomes a moving target,' he said.
Booking's direct traffic has remained resilient, with figures in the mid-60% range. This stability suggests that the company's brand strength and customer loyalty are mitigating some of the impact from changes in search engine results pages.
| Metric | Value |
|---|---|
| Direct traffic share | Mid-60% range |
| Paid search spend | Billions annually |
| SEO impact | Small part of overall business |
Impacts
The pressure from Google's AI Overviews could affect Booking Holdings' marketing strategy, potentially leading to increased investment in paid search and direct channels. Since paid search is already a significant expense, any shift in SEO effectiveness may reinforce the company's reliance on paid acquisition.
For travelers, changes in search visibility could influence how they discover and book accommodations. If organic results are downplayed, users may see more sponsored listings or AI-generated summaries, which could alter their booking behavior.
The broader travel industry may face similar challenges, as competitors also navigate the evolving landscape of AI-driven search. Companies that successfully adapt to these changes could gain a competitive edge, while those that lag may see higher customer acquisition costs.
Future Outlook
Scenario analysis: The possibilities below are not certain predictions.
Looking ahead, Booking Holdings may need to diversify its marketing channels further to reduce dependence on search engines. If AI Overviews continue to grow in prominence, the company could invest more in direct booking incentives, loyalty programs, and partnerships with AI platforms.
The impact of the Middle East conflict on long-haul travel demand remains uncertain. Fogel did not provide a specific timeline, but if the conflict persists, it could continue to dampen demand for long-haul travel, affecting Booking's international segments.
Alternatively, if AI platforms develop more stable and predictable ways for businesses to appear in responses, Booking could benefit from early partnerships. However, as Fogel noted, the moving target nature of these platforms means that any advantage may be temporary, requiring ongoing adaptation.
Source: skift.com
