Is Booking in Better Shape for a Recovery Than Airbnb and Expedia?

Along with the debate about the shape of a potential travel industry recovery, crosscurrents are emerging about which companies and business models would lead the charge.

Cowen Equity Research published a recent investor note contending that Booking Holdings is "in a better position to maintain staff today and invest in the recovery" compared with other online travel booking giants Airbnb and Expedia Group.

The Cowen note, written by Kevin Kopelman and Emily Lavin, centers on Bookings' advantageous liquidity position as compared to privately held Airbnb and public company Expedia.

Cowen estimated that the trio had the same fixed costs — around $750 million per quarter — before coronavirus-induced cost chops, but that recent financing moves leave Booking Holdings with about $8.5 billion in liquidity, and Airbnb and Expedia each with around $1-2 billion after the outflows of considerable prepaid bookings.