Airbnb, Booking.com and the Battle for Hearts – and Homes
By Douglas Quinby , Vice President of Research at Phocuswright, Inc.
It's shaping up to become one of travel's great competitive rivalries: Airbnb vs.Booking.com. One has achieved global dominance in online hotel distribution, the other in private accommodation. But as Phocuswright Research has been forecasting for several years, the silos and segments within accommodation are collapsing as travelers increasingly consider and book both. Each of these online travel giants are moving aggressively into each other's turf and the stakes – the more than US$600 billion global travel accommodation market – are high.
Booking.com has made clear its intentions to accelerate its growth in the private accommodation sector, while Airbnb has formally opened its platform for independent and boutique hotels, including partnerships with hotel technology firms to facilitate connectivity. Both present clear strategic threats to one another – Airbnb with its disruptive commission model for hotels, and Booking.com with its uncanny ability to acquire and convert demand. Both companies also face key strategic challenges:
- How will Booking.com make inroads on supply with a higher commission model for owners and a rigid insistence on instant booking and confirmation?
- And how will Airbnb expand its supply portfolio into hotels without diluting its core brand positioning?
Go deep into the European vacation rental market with Phocuswright's Private Accommodation in Europe: 2010-2020. The report provides market sizing and projections, in-depth analysis of key players, insights on travelers' attitudes, and much more.
Get answers to these questions and more directly from top executives at Airbnb and Booking.com during Phocuswright Europe, 15-17 May in Amsterdam.
Register through Friday, 16 March to save on your ticket!