Booking Holdings CEO Says Google AI Overviews Are Squeezing SEO Performance
Top executive acknowledges that Google's updated search display is impacting organic traffic, though core business metrics remain robust.
Stock photo for illustration only, not from the actual event
- CEO Glenn Fogel addressed the pressure on SEO results caused by Google's AI Overviews in Q2.
- Booking's direct traffic remains stable, holding firmly in the mid-60% range.
- The company spends billions annually on paid search, making SEO a smaller part of its overall marketing mix.
- External geopolitical factors and long-haul travel costs have created moderate growth headwinds.
The evolving search engine landscape is creating new hurdles for online travel agencies, with Booking Holdings acknowledging headwinds stemming from recent shifts in search technology. During the company's second-quarter earnings call with analysts, Chief Executive Officer Glenn Fogel noted that the changes implemented in Google's search display have placed noticeable pressure on organic search optimization results.
While Google's AI Overviews—which generate synthesized summaries directly at the top of search result pages—improve convenience for everyday web users, they inevitably push traditional blue links further down the page. Despite admitting a personal dislike for losing ground in SEO, Fogel emphasized that organic search represents a relatively minor component of Booking's overarching business strategy, especially when weighed against the billions of dollars the company funnels into paid search annually.
Stock photo for illustration only, not from the actual event
The rise of generative AI features like Google's AI Overviews represents a fundamental shift in how internet users discover information, often satisfying search intent directly on the results page without requiring a click-through to publisher websites. For travel giants like Booking, adapting to this zero-click environment requires continuous refinement of digital acquisition channels and visibility across emerging conversational AI platforms.
"I do believe that some of the changes that were made in the display at Google definitely put some pressure on SEO."
Glenn Fogel, CEO of Booking Holdings
Beyond search algorithms, the executive team addressed broader macroeconomic and geopolitical headwinds, including the ongoing conflict in the Middle East which tempered long-haul travel demand and elevated airfares. These factors contributed to a slowdown in year-over-year metrics, registering a 5% increase in room nights, a 4% rise in alternative accommodations, and an 8% growth in revenue. Nevertheless, net income surged by 118% to reach $2 billion, supported by resilient domestic travel strength heading into the third quarter.
As part of its forward-looking initiatives, Booking is heavily scaling its artificial intelligence integration across customer service operations, automated discovery features, and visibility optimization within major large language models like ChatGPT and Gemini, even as referral traffic from those engines remains modest. The company also raised its transformation-program savings target to $650 million in annual run-rate savings by 2027.
Source: Skift
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