Investing.com — The online travel industry will enter 2025 with mixed prospects, with analysts at Barclays (LON:) forecast a more challenging environment ahead.

While 2024 ended stronger than expected, Barclays said increasing foreign exchange (FX) headwinds and high expectations are likely to slow growth in 2025. key name of a note this week:

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

Barclays believes that BKNG remains a “name to own” in the longer term due to “strong execution” and “expected growth (ex-FX),” supported by a recovery in savings. “We don’t think there is much justification for further substantial re-ratings, but there is room for positive revisions to estimates,” Barclays said.

While FX headwinds may affect short-term growth, Barclays says BKNG’s international exposure and category mix, including double-digit growth in alternative accommodations and airfare, will position 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 the company had previously signaled this margin reduction, but analysts remained concerned that the “consensus is still too optimistic” about its ability to maintain profitability amid of higher investment in expanding its reach. Barclays set a price target of $110 for ABNB, noting that while its “segment versus traditional housing” is strong, growth initiatives come at a cost.

Expedia (NASDAQ: ) presents a mixed setup, says Barclays. With the easiest earnings comparison among peers, EXPE is said to benefit from its home exposure, which mitigates the impact of FX challenges.

However, the bank warned that the company faces slower domestic travel trends and uncertainty due to “management changes” and potential margin pressure. Analysts raised their price target for EXPE from $153 to $166, acknowledging its strong growth but highlighting the risk of execution challenges.

Finally, TripAdvisor (NASDAQ: ) is expected to face a difficult 2025, with expectations too high to meet the company. Barclays cut its growth assumptions, citing a “sharp y/y decline” in its core business, despite promising Viator and TheFork. Barclays expects “a point of margin compression” and remains cautious on TRIP’s outlook for the year.