Booking Holdings

TUI/Musement's new strategic partnership with Booking.com has the potential to reshuffle the powers that be in tours and activities, especially in Europe. But TUI doesn't have a stellar track record in online offerings, and much of the promise will depend on its execution.

Booking Holdings may be calculating that partner memories aren't exceedingly long. On the other hand, with additional layoffs a possibility at flagship brand Booking.com, the parent company has its own problems to deal with.

Kayak, OpenTable, and Agoda have laid off employees. The flagship brand, Booking.com, initially took Dutch government relief money that forestalled downsizing, but has opted not to extend it. Amid other restructuring moves under way, that means layoffs are likely on the agenda as Chairwoman Gillian Tans re-ups.

Many companies won't reopen for business when coronavirus ebbs, but two that will definitely still be left standing will be Expedia Group and Airbnb. They could potentially find ways to cooperate in the face of bigger threats in the form of Google and Booking.com.

At first, John Brown cut costs rather than staff, including foregoing his salary for the rest of 2020. But the Agoda CEO now has to take the last measure, citing a deeper and more prolonged recovery than expected.

Surprises will inevitably pop up that Glenn Fogel, Steve Kaufer, and others can't envision now about what the travel industry may look like in 2022 and beyond. So the duo, both 20-year travel industry veterans, may be wrong about some crystal ball assumptions, but that doesn't mean their companies won't be able to adapt.

Will it be hotels or alternative accommodations that bounce back first? Booking Holdings officials said they see a shift toward alternative accommodations when travelers are booking stays at least two months in advance. But this trend won't necessarily stick over the long term.

The job cuts at Kayak and OpenTable represent the first reported layoffs and furloughs at parent company Booking Holdings growing out of the coronavirus crisis other than for 48 contractors at Booking.com whose agreements weren't renewed. Few travel companies will emerge unscathed so it wouldn't be surprising if more cuts were coming at other Booking brands.

Booking Holdings hired a new marketing chief in 2019 because it knew that its brand marketing in the U.S. was falling short, particularly against household name Expedia. Booking is pivoting to address shortcomings, realizing finally you can't keep kicking the can down the road with basically the same strategy.

Bear or bull? There are diverging options about an economic recovery and McKinsey covered various scenarios. In other coronavirus stories this week, Booking Holdings applied for UK and Netherlands government relief, the U.S. travel industry has a wish list for the next relief package, cruise lines appear ready to defy a no-sail order, and hospitality students see the job market disappear.