Independent hotels remain the backbone of Booking.com’s growth strategy

OTA highlights reliance on smaller properties as AI platforms and Airbnb compete for hotel supply

Booking Holdings CEO Glenn Fogel underscored the critical role of independent hotels in the company’s business model as new competitive pressures emerge from AI booking platforms and Airbnb. Independent properties continue to generate the majority of room nights on Booking.com, reinforcing their importance to the platform’s global inventory. At the same time, technological shifts and alternative distribution channels are reshaping how these hotels may reach travelers. Booking is responding with increased AI investment, expanded travel offerings, and continued partner support initiatives.

Key takeaways

• Independent hotels drive booking’s inventory strength: Smaller properties provide most room nights on the platform, making them central to Booking’s long-term growth strategy.
• AI platforms introduce new distribution dynamics: Emerging AI travel agents could automate hotel search and booking, potentially influencing how independent hotels gain visibility.
• Airbnb targets the same hotel segment: The platform is increasingly courting boutique and independent hotels, often positioning lower commissions as a competitive advantage.
• Connected trip bookings continue to expand: Combined bookings across flights, accommodation, and other services are growing, although they still represent a minority of total transactions.
• AI investment supported by cost savings: Booking expects significant operational savings by 2026 and plans to reinvest them into AI capabilities and strategic initiatives.
• Stock split broadens investor access: The planned share split is intended to improve affordability for retail investors without affecting the company’s operational strategy.

Source: Skift

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