Demand for alternative accommodations on Booking.com continued to grow in the third quarter of 2026, confirming that these types of properties are gaining ground in the global travel market.
In particular, room nights booked at alternative accommodations on the platform increased by 7% year over year, compared with 4% growth in the second quarter. Meanwhile, the number of available listings rose by 9%, reflecting the continued expansion of supply.
According to the financial results of Booking Holdings, the parent company of Booking.com, alternative accommodations accounted for approximately 37% of all room nights booked on the platform during the third quarter, an increase of around one percentage point compared with a year earlier.
This category includes short-term rentals of houses and apartments but extends beyond them, covering other distinctive and independent types of accommodation.
More listings and stronger competition
The 9% increase in available properties on Booking.com, combined with the 7% rise in room nights, highlights another trend: growing competition among property owners and managers.
However, the expansion of supply does not automatically mean that every property will receive fewer bookings. The traffic attracted by the platform, as well as the geographical market in which each business operates, also plays a decisive role.
In this environment, listing quality, photographs, comprehensive property information, guest reviews and participation in loyalty programs, such as Genius, are becoming increasingly important for attracting guests.
Travelers are choosing destinations closer to home
Another interesting finding from the group’s results concerns the geographical distribution of travel demand. Domestic room nights increased by a high-single-digit percentage in the third quarter, while international room nights grew at a mid-single-digit rate.
Domestic travel performed particularly strongly in Asia, where growth reached double digits, while Europe recorded high-single-digit growth.
This trend is linked, among other factors, to higher airfares, reductions in certain flight connections and the impact of geopolitical instability in the Middle East. As a result, some travelers are opting for shorter getaways and destinations closer to home.
At the same time, the average daily rate (ADR) across all accommodation types and brands within the group increased by approximately 3% year over year on a constant-currency basis, with Europe showing the strongest momentum.
Growth expected to slow in the final quarter
Despite the positive performance recorded in the third quarter, Booking Holdings has adopted a more cautious outlook for the final quarter of 2026. The group’s management expects total room nights to increase by 1% to 3% year over year.
This forecast is mainly attributed to the fact that the fourth quarter of 2025 recorded the strongest quarterly performance of the previous year, with room nights growing by 9%. This therefore creates a particularly high comparison base.
Other factors influencing the outlook include weakening international travel demand, high airfares, geopolitical developments and localized disruptions in European cities.
However, slower growth does not necessarily indicate a decline in demand. As the company’s analysis suggests, travelers are continuing to make bookings, but in some cases they are changing their destinations, trip duration or mode of transportation.
Read also: Airbnb: 35% of first-time hotel bookers later choose a home – Q3 results
Early signs for 2027 are positive
Looking ahead to next year, Booking Holdings management reported that bookings already made for the first half of 2027 show encouraging signs. However, the company clarified that this is an early indication that could change due to cancellations or shifts in traveler behavior.
Overall, the third-quarter results confirm that alternative accommodations are gradually strengthening their position within Booking.com’s portfolio, accounting for a growing share of the platform’s total activity.
The coming months will be particularly important in determining whether the acceleration in demand recorded during the summer can be sustained throughout the winter season, amid growing competition, higher transportation costs and changing travel preferences.
