Booking's full-year booking volume outlook exceeds expectations, concerns about slowing travel demand have turned into a blessing in disguise.

Booking Holdings (BKNG.US), which owns travel brands such as Kayak and Priceline, announced its third-quarter financial results after the market closed on October 28th, Eastern Time. The outlook for full-year bookings was better than expected, easing investors' concerns about the overall economy and the US government shutdown impacting travel demand. The company's stock price rose in after-hours trading. Data shows that in the quarter ending in September, the company's revenue increased by 13% year-on-year to $9.01 billion, higher than analysts' expectations of $8.73 billion. The company's adjusted earnings per share for the quarter were $99.50, a 19% increase from the same period last year, exceeding analysts' expectations of $95.85 per share. Booking stated in its Tuesday announcement that it expects a 7% growth rate in "room nights" for the full year. Analysts had previously expected this growth rate to be 6.7%. This optimistic outlook is due to strong performance in the third quarter, with room nights sold and total booking value exceeding analysts' expectations. In the three months ending on September 30th, room nights sold increased by 8% to 323 million nights, surpassing analysts' average expectation of 316 million nights; total booking value was $49.7 billion, higher than the average expected value of $47.9 billion. Booking executives stated in a post-earnings conference call that demand remained resilient in all major regions, driving performance above expectations, with the US market benefiting from stronger outbound travel demand. However, the average daily rate (ADR) paid by travelers in this region declined compared to last year, indicating a tendency towards cautious spending among consumers. Chief Financial Officer Ewout Steenbergen stated in the conference call: "In the US market, we see that the average daily rate is still slightly lower than last year, and the length of stay of travelers has also shortened, which may indicate that some American consumers still have a cautious attitude towards non-essential expenses." As of the time of writing, Booking's stock price had risen by approximately 3.4% in after-hours trading. The stock had accumulated a 3.1% increase since the beginning of the year, slightly lagging behind the S&P 500 index. Following Booking's earnings announcement, shares of online travel industry competitors Expedia (EXPE.US) and Airbnb, Inc. Class A (ABNB.US) also saw increases, with both companies planning to report their financial results on November 6th. When Booking released its previous financial report in July, it warned that "increased uncertainty in the economic and political environment" would put pressure on travel demand. Looking at the entire travel industry, the financial outlook of various companies this quarter has shown a mixed trend. American Airlines Group Inc. (AAL.US) and Delta Air Lines, Inc. (DAL.US) expect strong performance by the end of the year, but Southwest Airlines Co. (LUV.US) stated that if the second-longest government shutdown in US history continues, holiday travel season performance may be weaker than usual. Although Booking's expectations for some key indicators in the holiday season in the fourth quarter were lower than Wall Street forecasts, its third-quarter performance was still well received by investors. The online travel giant expects a room night growth rate of 4% to 6% in the fourth quarter, lower than Wall Street's previous expectation of 5.7%; its revenue growth rate expectation for the fourth quarter is 10% to 12%, also lower than the market consensus expectation of approximately 11.5%.