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Key Points
- Morningstar lowered its 2025 revenue growth outlook for major online travel firms due to tariffs and economic concerns.
- Booking and Airbnb are seen as having ‘wide moats,’ while Expedia’s moat is ‘narrow’ and Tripadvisor has none.
- Investors are believed to be undervaluing Airbnb’s potential despite its strong network advantage and international growth.
Summary
Morningstar has halved its 2025 revenue growth projections for major online travel firms, including Booking Holdings, Airbnb, Expedia Group, and Tripadvisor, due to concerns over tariffs and the economic outlook. Booking and Airbnb are considered to have strong competitive advantages, while Expedia’s is moderate and Tripadvisor has none. Despite this, Morningstar suggests that investors are underestimating Airbnb’s potential for international growth and network benefits.
