The geopolitical crisis in the Middle East does not “erase” travel demand. It simply changes its direction. This is the main conclusion from the presentation of Booking.com’s results for the first quarter of 2026. According to the data, the conflict in the Middle East reduced the platform’s growth rate (in nights and total bookings) by about two percentage points. However, the picture is not negative: in the U.S., nights increased by a double-digit percentage, mainly due to domestic tourism, while in Europe and Asia strong intra-regional travel was also recorded.
Demand is not declining, the travel map is changing
This also changes the key question for this season: it is not whether people will travel, but where. With air travel becoming more expensive and uncertain, more and more people are turning to nearby, road, or domestic destinations — a trend that particularly benefits alternative accommodations (homes, apartments, short-term rentals). Despite the pressures, Booking.com’s financial results show resilience. Here are the first-quarter performance figures:
a) Nights increased by 6% (338 million)
b) Bookings increased by 15% ($53.8 billion 15%)
c) Revenue reached $5.5 billion (+16%)
d) Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 19% and adjusted earnings per share increased by 14%.
Alternative accommodations as a pillar
Alternative accommodations as a pillarAlternative accommodations remain a key pillar of growth, reaching about 38% of total nights, with a continuous increase in supply. Although their growth rate has slowed compared to the recovery period after the pandemic, this appears more as a return to normal levels rather than an indication of weakening.
What this means for property managers and owners
For property managers, the message is clear: channel diversification and adaptation to the new geography of demand are critical. Booking’s platform, with payment tools, fraud prevention, and a strong loyalty program (Genius), offers broad reach — especially among travelers looking for an “all-in-one” experience. At the same time, the strengthening of direct bookings through the app and the increase in prepaid bookings show that the company is increasingly controlling the user experience. This means greater price competition, but also more stable revenue flows for owners.
In conclusion, 2026 does not seem to be a year of declining tourism, but of redistribution. Domestic tourism is expected to strengthen, and those who adapt early — with flexible policies, local marketing, and proper pricing — will be the ones who see the greatest increase in occupancy and revenue.
