# Booking Holdings merchant model and regulatory scrutiny

> Live situation record from CLSTR: https://clstr.news/situations/booking-holdings-merchant-model-and-earnings
> Updated: 2026-08-10T23:18:29.000Z. Sources: 8. Developments: 3.

In late July 2026, Italy’s competition authority opened an investigation into Booking Holdings’ fee‑based visibility programmes that reward hotels with higher commissions for better search placement. The probe specifically examines programs such as “Accelerator” and “Preferred Partner,” which allow properties to choose extra commission for specific dates and markets to influence rankings. This investigation questions whether such paid visibility unfairly makes higher‑paying hotels appear more favorable to travelers.

The probe underscores the company’s rapid shift from an agency‑style to a merchant model. In its second‑quarter 2026 earnings, merchant revenue rose 26.7% to $3.70 billion, while agency revenue fell 2.3% to $1.53 billion. Consequently, the merchant model now accounts for approximately 66.8% of total revenue. Deferred merchant bookings—funds held from travelers before the company fulfills its obligations—increased to $8.2 billion, up from $6.9 billion a year earlier.

Despite these regulatory challenges, including a class-action lawsuit involving over 10,000 European hotels regarding commission structures and price parity clauses, the firm reported strong financial growth. Second-quarter 2026 net profit reached $1.95 billion, a 118% increase year‑over‑year, on total revenue of $7.35 billion. Gross booking value reached a record $51 billion, driven by 325 million room nights. Management noted that travel demand remains resilient despite geopolitical uncertainty in the Middle East.

## Claims

- Booking Holdings reported a Q2 net profit of $1.95 billion, up 118 % year‑over‑year. (corroborated by 2 sources)
- Q2 revenue was $7.35 billion, an 8 % increase from the prior year. (corroborated by 2 sources)
- 325 million room nights were booked in Q2, a 5 % rise YoY. (corroborated by 2 sources)
- Gross booking value reached $51 billion in Q2, up 9 % YoY. (corroborated by 2 sources)
- CEO Glenn Fogel said travel demand remains resilient despite geopolitical uncertainty. (corroborated by 2 sources)
- The merchant model now accounts for about 66.8 % of total revenue, up from 61.3 % a year earlier. (single source)
- Deferred merchant bookings were $8.2 billion at March 31 2026, up from $6.9 billion a year earlier. (single source)
- Booking forecasts Q3 room nights to grow 3‑5 % and bookings 4‑6 % YoY, with overall travel demand stable. (single source)

## Timeline

### 2026-08-10: Booking Holdings reports 118% profit surge to $1.95 billion

Booking Holdings saw a 118% jump in Q2 2026 net profit to $1.95 billion. In Spain, while its local subsidiary reports modest figures, actual revenue from the market is estimated at €1.7 billion.

2 sources. https://clstr.news/cluster/booking-holdings-reports-118-profit-surge-to-195-billion

### 2026-08-05: Booking Holdings posts doubled Q2 profit, forecasts resilient travel demand

Booking Holdings posted a $1.95 bn Q2 profit, up 118 %, with revenue at $7.35 bn. Travel demand stays resilient; Q3 bookings expected to rise 4‑6 % despite Middle East conflict.

4 sources. https://clstr.news/cluster/booking-holdings-posts-strong-q2-earnings-warns-of-slower-travel-growth

### 2026-07-30: Booking Holdings' fee structure under regulator probe as hotels pay for higher rankings

Booking Holdings lets hotels pay extra commission to boost listings, a practice now probed by Italy’s regulator; its 2026 report shows merchant revenue rising to $3.7 bn and $8.2 bn in deferred bookings.

2 sources. https://clstr.news/cluster/booking-holdings-fee-structure-under-regulator-probe-as-hotels-pay-for-higher-rankings

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Cite as: Booking Holdings merchant model and regulatory scrutiny. CLSTR, https://clstr.news/situations/booking-holdings-merchant-model-and-earnings