Booking Holdings is beating Airbnb in home stays
It wasn’t so long ago that “home stays” – the practise of renting out your home, or a part of your home, to travellers for a night or two, disrupted the hospitality industry. A business model pioneered by, amongst others, Airbnb, has made and lost fortunes in the years intermittent. But one of the major players in the travel and hospitality industry has not only survived that disruption, but managed to become a market leader in it: Booking Holdings, which announced last month that it was beating Airbnb at its own game.
Over the last month, Booking Holdings has seen its share price rise by 8%
Source: Yahoo Finance
Here’s the bottom line: since 2007, 748 million people have used Booking.com (which is owned by Booking Holdings) to find home stay options. Those include homes, apartments, rooms, and stranger listings like “yurts and igloos”. Over the same period, Airbnb reports that 500 million guests have done the same through its service. That’s great news for Booking Holdings, which is an established player in the hotel reservations space and has been waging a war of attrition with Airbnb to ensure it could hold its own in this newer, disruptive, form of hospitality booking.
In a recent interview with Fortune Magazine, Booking’s CEO, Glen Fogel, praised the company’s home stay business, saying: “It is growing faster than our core business, and we’re pleased with that.” But he added: “When you look at our market share in the home area, we’re not as high in the U.S. as a competitor of ours. So we want to make sure the marketing efforts are growing brand awareness in the U.S.” The competitor, of course, is Airbnb.
Fogel continued to speak about the travel sector with confidence, saying: “as long as GDP continues to grow, the travel industry will too. We know we’ll get that tailwind of a growing industry.”
Dominion holds Booking Holdings in its Global Trends Ecommerce Fund.
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