In this Booking Holdings Ltd deep dive, we sit down with Alan Pullen from Magellan Investment Partners to analyse the evolution of a travel giant. From its origins as Priceline.com during the dot-com era to its transformative acquisition of Booking.com, we explore how the company’s shift from an agency model to a merchant model has reshaped its financial profile. We break down the "Connected Trip" strategy and examine how the integration of brands like Agoda and OpenTable creates a powerful network effect that continues to dominate the fragmented European and global hotel markets. As investors look for long-term value, this analysis scrutinises the Booking Holdings moat in the face of rising competition. We address the critical question: Is Google or AI a legitimate threat to their market share, or will these technologies serve as enhancers for their data-driven ecosystem? Whether you are looking at management alignment, loyalty program efficacy, or the investment case for BKNG stock, this episode provides a comprehensive look at the risks and opportunities within the current economic environment. Alan Pullen is the co-portfolio manager for the Magellan Global Opportunities Fund (ASX:OPPT). Talking Points: - William Shatner’s regret: Being paid in Priceline stock - What hotel reservations used to look like and what happened to Wotif? - The start of Booking Holdings’ life as Priceline in 1997 - Priceline lists on the Nasdaq in 1999, just before the dot-com crash - How did Priceline fare during the dot-com crash? - Surviving the crash and acquiring a small Dutch business called Booking.com - Booking.com’s original agency business model vs. the merchant model - How the agency model accelerated Booking’s success and disrupted incumbents - Booking’s network effect and the fragmented European hotel market - How has Booking.com competed in markets outside of Europe? - Booking’s acquisition of brands like Agoda and OpenTable - Booking’s business model today: The merchant model overtakes the agency model - Does Booking benefit from the "float" provided by the merchant model? - Understanding the “Connected Trip” and why the app is vital to Booking Holdings - OpenTable and Booking’s move into "Experiences" - The power of Booking Holdings’ data - How important is the Booking Holdings loyalty programme? - What is Booking Holdings’ moat? - What do hotels pay to Booking? - Booking Holdings’ competitors and business risks - Is Google a threat to Booking Holdings? - Is AI a threat or an enhancer for Booking Holdings? - Management quality: Are incentives aligned with shareholders? - Macro risks: How exposed is Booking Holdings to economic volatility? - The investment case for Booking Holdings - Key questions investors should ask when reading Booking Holdings reports - How important is US growth for Booking Holdings? - When is the right time to buy Booking Holdings? Resources for this episode

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How booking.com built a travel empire (and why Google can’t kill it yet)