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Investing.com — Online travel industry enters 2025 with mixed outlook, analysts say Barclays (LON:) predicts a tougher environment ahead.

Although 2024 ended stronger than expected, Barclays notes that increased foreign exchange (FX) headwinds and high expectations are likely to limit growth in 2025. The bank has reviewed the names of A few important notes this week:

Booking Holdings (NASDAQ: ) stands out as a strong pick in the Barclays report, despite its high valuation.

Barclays believes BKNG remains a “name to own” for the long term due to “strong performance” and “expected growth (ex-FX),” supported by restructuring . “We don’t think there’s much reason to give more points, but there’s room for better estimates,” says Barclays.

While FX headwinds may affect short-term growth, Barclays says BKNG’s international exposure and mix of categories, including double-digit growth in some accommodation and airfares, positions it for continued success.

Airbnb, on the other hand, faces a more cautious outlook, according to Barclays. The bank pointed to “EBITDA margin compression” in 2025. The bank said that the company previously marked this network contract, but analysts are still worried that “the deal is still optimistic” about its ability to maintain profitability amid high investment in expanding its reach. Barclays has set a price target of $110 for ABNB, noting that although its “share against traditional accommodation” is confirming, growth measures come at a cost.

Expedia (NASDAQ:) offers a mixed setup, says Barclays. With the easiest cash comparisons among peers, EXPE is said to benefit from its domestic exposure, which mitigates the impact of FX issues.

However, the bank warns that the company faces light domestic travel trends and uncertainty due to “regulatory changes” and potential pressure. Analysts raised their price target for EXPE from $153 to $166, acknowledging its solid growth but highlighting the risk of execution problems.

Ultimately, TripAdvisor (NASDAQ:) is expected to face a tough 2025, with expectations too high for the company to meet. Barclays backed off its growth outlook, citing a “significant y/y decline” in core business, as Viator and TheFork show promise. Barclays expects “weakness” and remains cautious on TRIP’s outlook for the year.