Booking Holdings takes $1 billion hit to third-quarter results linked to FTC action

Nov 3 : Priceline parent Booking Holdings said on Tuesday it recorded a $900 million reduction in revenue and accrued a loss of $100 million related to an FTC action involving its subsidiary’s connection to deceptive hotel ads.As a result, the online travel agency’s third-quarter revenue declined 1 per cent y


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Booking Holdings takes $1 billion hit to third-quarter results linked to FTC action

Booking Holdings takes $1 billion hit to third-quarter results linked to FTC action

Booking.com logo is seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration

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Nov 3 : Priceline parent Booking Holdings said on Tuesday it recorded a $900 million reduction in revenue and accrued a loss of $100 million related to an FTC action involving its subsidiary’s connection to deceptive hotel ads.

As a result, the online travel agency’s third-quarter revenue declined 1 per cent year-over-year. Shares of the company were down 1.8 per cent in extended trading.  

Booking disclosed in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices.

The FTC had been investigating Priceline’s relationship with Guest Reservations, a third-party website that advertises stays at specific hotels. The company previously said it was in talks with the FTC to resolve the matter.

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The agency was considering whether Guest Reservations’ websites, which often charge higher prices and fees for hotel rooms, ​violate a rule against impersonating other businesses, along with other potential violations regarding fees. 

Reuters reported in October that the case could carry more than $500 million in potential penalties. 

Priceline supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions, according to an ongoing lawsuit against the companies ‌filed by San Francisco.

The charge comes as global travel demand moderated somewhat toward the end of the third quarter, reflecting softer international travel trends, while domestic travel has remained resilient, Booking said in a statement on Tuesday.

 Booking said gross bookings grew 10 per cent year-on-year during the quarter and room night grew 7 per cent, as the travel industry has been supported by affluent travelers.

The Norwalk, Connecticut-based company posted a profit per share of $4.66 for the third quarter, compared with $3.98 per share in the year-ago period. Analysts were expecting $4.50 per share.

Total revenue for the quarter ended September 30 came in at $8.89 billion, compared to about $9 billion a year earlier. 

Source: Reuters

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