Booking Holdings’ Chief Financial Officer, Ewout Steenbergen, believes that the company’s short-term rental business is underappreciated and understated in comparison to Airbnb. He pointed out that Booking Holdings is growing faster in its alternative accommodations business and has two-thirds of the listings that Airbnb has. Steenbergen claims that Booking’s alternative accommodations business has been growing faster than Airbnb’s in 12 out of the past 13 quarters. However, Booking only provides quarterly figures for total room nights, so this data cannot be confirmed.
Steenbergen also addressed the misconception that Booking is heavily dependent on Google for attracting customers. He stated that Booking has been successful in attracting direct traffic, with direct traffic accounting for a significant portion of their business-to-consumer realm. Booking could potentially attract more direct traffic by reducing its spending on performance marketing in search engines but chooses not to in order to attract new customers. Steenbergen also mentioned that Booking is investing in social media marketing and sees great potential in that area.
Another area where Booking Holdings is underestimated is in Asia, according to Steenbergen. He highlighted Agoda, the largest online travel platform in Asia outside of mainland China, which has a strong market position and high growth potential. Additionally, Steenbergen defended Booking’s “connected trip” strategy, which aims to get users to book flights, accommodations, cars, and experiences all through Booking’s brands. He noted that travelers on longer trips are increasingly making multiple bookings across different verticals through Booking’s platforms.
Steenbergen expressed optimism about Booking Holdings’ future, stating that the company is positioned for growth and success. He sees the connected trip strategy, the company’s strong position in Asia, and its alternative accommodations business as key factors driving growth and delivering positive economic results. He emphasized that Booking continues to evolve and grow above market rates. Investors should not overlook Booking Holdings’ potential for success and growth in the online travel industry.
Booking Holdings’ CEO and president, Glenn Fogel, will be speaking about these issues at the upcoming Skift Global Forum in New York City. This event will offer further insights into Booking Holdings’ strategies and outlook for the future. It is clear that Booking Holdings’ business is multifaceted and has substantial growth potential, despite being overlooked in comparison to competitors like Airbnb. Steenbergen’s insights shed light on areas where Booking Holdings is performing well and has room to grow, positioning the company for continued success in the online travel industry.
