Booking Holdings has seen rapid growth in its short-term rental business, outpacing that of Airbnb. The CEO, Glenn Fogel, believes that the homes area is a crucial part of the company’s business strategy. With two-thirds of room nights for short-term rentals being sold by Booking Holdings compared to Airbnb, the company has experienced continuous growth over the past 13 quarters. Fogel emphasized the importance of offering options for hotels and apartments on one platform to simplify the consumer experience and drive additional purchases.
Despite Booking Holdings’ success globally, Fogel acknowledged that the company is still relatively small in the U.S. market, presenting a significant opportunity for expansion. The company currently has 7.8 million short-term rental listings worldwide, with a majority of those listings being in Europe. Fogel highlighted the potential growth in the U.S. market as a key focus for the company’s future development. He also emphasized the impact of offering various accommodations on one platform, leading consumers to explore and purchase products they may not have initially considered.
Addressing the issue of junk fees and price transparency, Fogel expressed support for regulations that require upfront disclosure of total prices, excluding taxes, by hotels. He acknowledged that such regulations could level the playing field for companies and prevent competitive disadvantages for those willing to disclose additional fees. Fogel stressed the need for federal regulation on price transparency rather than a state-by-state approach to ensure consistency and fairness across the industry.
As the competition in the travel industry intensifies, both Booking Holdings and Expedia have experienced slower growth rates. Skift Research reported that Booking’s growth declined from over 40% in 2011 to just 4% in 2019, with projected growth below 10% in the next decade. Despite these challenges, Fogel remains optimistic about the opportunities for growth, particularly in exploring advancements in artificial intelligence and technology. He believes that the evolving landscape of technology presents exciting possibilities for the company to innovate and adapt to changing consumer preferences.
The shift towards offering a comprehensive range of accommodations on a single platform has been a key strategy for Booking Holdings’ success in the short-term rental market. By integrating both hotels and apartments on one website, the company aims to simplify the booking process for consumers and drive additional sales. Fogel highlighted the data-driven approach of Booking Holdings, demonstrating how consumer behavior can be influenced by presenting a diverse range of choices. This strategy has contributed to the company’s growth and competitive positioning in the short-term rental sector.
Looking ahead, Fogel emphasized the importance of staying ahead of technological advancements and leveraging artificial intelligence to enhance the customer experience. Despite facing challenges in a competitive market, Booking Holdings remains focused on developing innovative solutions and expanding its presence in key markets, such as the U.S. The company’s commitment to price transparency and regulatory support reflects its dedication to creating a level playing field for all players in the travel industry. With a strong foundation and a focus on innovation, Booking Holdings is poised to navigate the evolving landscape of travel and hospitality.
