Booking: Short-term rental accommodation alternatives

Following a strong third quarter, Booking Holdings raised its outlook for the full year, citing growth in both hotel and alternative short-term rental accommodation.

The company’s alternative accommodation room nights outperformed Booking’s core hotel business. Short-term rentals were up 14%, compared to an 8% jump in total hotel and STR nights. Short-term rentals accounted for 35% of accommodation bookings in the third quarter, up 2% YoY.

During the company’s earnings call, CEO Glenn Fogel said the company’s alternative accommodation business is about two-thirds the size of “the largest accommodation player in this market,” namely Airbnb.

Strength in the European short-term rental market was what really drove the overall 8% increase in room nights, a result which actually exceeded the company’s forecasts.

Short-term Rental Accommodation Boost

Overnight stays: Alternative short-term rental accommodation now accounts for 35% of Booking.com’s total bookings. A 10% increase in overnighgt stays in alternative accommodations means more choice for travelers – and more competition for hotel-heavy platforms.

Genius Loyalty: Mobile bookings grew by over 50%, with Genius loyalty users driving a significant portion of those bookings. For travelers, it’s not just about the stay – it’s about the rewards and convenience.

“Open The Door” Campaign: Booking.com launched its “Open The Door” campaign in key markets to attract new hosts. This campaign highlights the flexibility and revenue potential of hosting, positioning Booking.com as an attractive option for property owners.

What drives Booking.com’s success

While Vrbo (Expedia Group) is moving toward a logic of separating hotels from alternative accommodations, Booking.com’s strategy is to blur the lines between them, giving guests the best of both worlds. Its diverse inventory and active marketing to hosts have helped it increase new listings, making it the most flexible option for travelers.

By combining accommodations, flights, and activities, Booking.com is creating a “one-stop travel shop.” The more travelers can book on one platform, the more loyal they become—and the more likely they are to return.