The Flexible Accommodation sector, a maturing segment of the travel industry, is experiencing increasingly intense competitive dynamics. Historically, Airbnb capitalised on its early mover advantage, but current figures suggest a notable shift in market supremacy, with Booking.com gaining substantial ground.
Recent data are revealing: last year, Booking.com recorded 400.4 million nights booked in short-stay accommodation (STR), which represents a significant 80% of the total number of nights managed by Airbnb. Even more indicative is that Booking.com generated nearly double the number of nights per advert on its platform compared to Airbnb. In terms of growth in the number of Flexible Accommodation listings, Booking.com showed a rate of increase of 17%while Airbnb only grew by 4%. These statistics point to an accelerated dissipation of Airbnb's first mover advantage.
One of the main strategic divergences that explain this evolution lies in the adoption of established practices in the online travel ecosystem, particularly the implementation of loyalty programmes. It is a constant in the industry: from major online travel agencies (OTAs) such as Expedia, to local activity platforms such as Viator and GetYourGuide, to airlines, car rental companies, cruise lines and hotel chains, all integrate loyalty programmes.
The existence of a loyalty programme is a key strategic asset. It reaffirms a brand's perceived value proposition and fosters an emotional connection with the consumer, which translates directly into increased repeat business. This repeat business not only strengthens the user base, but also generates a direct and therefore more efficient and profitable flow of business. Loyalty programmes have, in fact, become one of the value pillars of leading travel and tourism companies. retail.
In this context, Airbnb's lack of a loyalty programme is perceived by some analysts as its "Achilles' heel". While the company has emphasised its cultural roots, positioning itself as "a noun and a verb" in the colloquial language of travel - a statement reminiscent of other historical brands such as Xerox - its direct competitors have moved in this direction.
The Expedia (One Key) and Booking.com (Genius) loyalty programmes already bring together 220 million members each. These programmes offer attractive rewards, discounts and benefits for booking a wide range of Flexible Accommodation properties, including many of the same units found on other platforms.
It is crucial to understand that travellers who opt for Flexible Accommodation do not operate in an isolated niche. PhocusWright's research indicates that a 45% of users of short-stay accommodation compare their options with hotels. These same travellers may opt for a hotel for a business trip or shorter leisure stays, while a Flexible Accommodation may be their choice for a family reunion or an extended stay.
This puts Airbnb not only in direct competition with Booking.com and Expedia (via Vrbo), but also with the large hotel chains, boutique and luxury hotel brands. All of these entities have robust loyalty or rewards programmes. A clear example is Marriott's Bonvoy programme, which grew by 16% in 2024reaching 228 million members. This programme generated the 73% of room nights booked in the U.S. and the 66% globally. In addition, Marriott's Homes & Villas division, with more than 140,000 selected households and villages worldwide, it competes directly with Airbnb's core business.
Unlike Airbnb, Booking.com has cultivated a robust loyalty programme and, in doing so, is demonstrating a considerable ability to close the gap in the Flexible Accommodation sector. Market dynamics demand constant adaptation, and customer loyalty emerges as a key differentiator in this intense race.
