BKNG · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Booking Holdings Inc. · 2026-08-04 · Importance 37 · Surprise 32

Merchant gross bookings represented 73% of company-wide gross bookings in the second quarter of 2026, up from 69% in the second quarter of 2025 because Booking.com continued moving from agency to merchant bookings. The merchant mix increases personnel, payment-processing, chargeback, fraud-related, and other transaction expenses, which pressure operating margins despite incremental payment-facilitation revenue. Connected Trip expansion is increasing the proportion of lower-margin non-accommodation services, which may reduce overall operating margins as that mix grows. Alternative accommodations represented approximately 37% of Booking.com room nights in the second quarter, and related customer-service and partner costs may also reduce profit margins.