Airbnb And Priceline Group Fight To Be The First Stop In Travel Planning
Priceline is bigger—and faster—but Airbnb's masterful marketing gives it an edge.
At first glance, hotel-booking giant Priceline Group and alternative accommodations hub Airbnb may not seem like obvious competitors. But as with all great rivalries, each company needs what the other has in abundance.
At first glance, hotel-booking giant Priceline Group and alternative accommodations hub Airbnb may not seem like obvious competitors. But as with all great rivalries, each company needs what the other has in abundance.
Unicorn and media-magnet Airbnb has always been great at communicating who it is and what it does. Airbnb brought hotel alternatives like mushroom dome cabins, treehouses, and your buddy’s San Francisco studio into the mainstream, leading it to a $25.5 billion valuation and a reputation as a hotel industry-killer. However, it more immediately challenges online travel agencies (like Priceline Group) and their $200 billion in annual bookings.
Priceline, meanwhile, is the Airbnb of 1999, all grown up. The once-buzzy company known for its commercials starring William Shatner faced hard times when the dot com bubble burst, but has since rebuilt itself into a massive $66 billion company with six core brands: Priceline.com, Open Table, Agoda, RentalCars.com, Kayak, and perhaps the most direct Airbnb competitor, Booking.com. Altogether, Priceline Group raked in $2 billion in quarterly revenue and $374 million in profits in the spring of 2016. Part of the reason for that success? Powerful acquisitions and a focused vision.
Airbnb needs Priceline’s money-making prowess, while Priceline needs Airbnb’s powerful branding. Here's how the two rivals compare.