How Might Booking.com Further Help In Priceline’s Growth In The Vacation Rental Segment?
According to Priceline Group’s interim CEO, Jeffery Boyd, Booking.com might be a more preferable choice for users for alternative accommodation bookings (such as vacation rentals) than Expedia’s HomeAway because of the latter’s imposition of a booking fee earlier this year. HomeAway currently charges 6% of the rental amount excluding taxes and any refundable deposits for its vacation rentals. HomeAway has faced customer dissatisfaction post this decision and some customers have even filed lawsuits against this decision. HomeAway is the biggest platform for vacation rental properties currently with over 1 million properties on its website.
Currently, Booking.com offers close to 500,000 vacation rentals and apartments and does not charge any booking fee. In fact, the refusal to charge a booking fee is one of the primary reasons why Booking.com is the most popular accommodation booking site in the world. The other reasons are Booking.com’s wide range of accommodations and its instant confirmation of the bookings.
Priceline’s hotels division contributes around 90% of its revenues and Booking.com is the primary driver for the growth of this segment. Booking.com again delivered a solid quarter in Q2 with the list of accommodations on its platform crossing 1 million, reflecting a 30% year-on-year growth. The brand has almost doubled the number of properties on its platform in around two years time. Booking.com is presently looking into more aggressive penetration into the single-owner, single-room market.
Have more questions on Priceline? See the links below.
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