I have commented on BKNG and ABNB before. Both companies are toll booth or entry points to lodging industry. BKNG has a strong position against hotels, ANBN is to vacation rentals. BKNG also covers vacation rentals.
To me, ANBN has saturated the vacation rental market. BKNG has saturated many years ago, and that's why BKNG is buying back shares, to me that's a much more efficient capital allocation strategy, than trying to create a new revenue source (very difficult).
All that said, the TAM is much larger for BKNG, as it's the entry point to the entire travel industry, where ANBN is a much smaller TAM. Between ANBN, and BKNG, BKNG is very clear a winner.
Thanks for your awesome write up though, I don't agree with your point that ABNB has a longer runway simply because it's a younger company, by that logic, a new startup should always overthrown the most dominant incumbents, which is very rare in reality.
As a shareholder, I've grown slightly more skeptical of Airbnb's diversification. I agree services and experiences overall are a bit underwhelming, but I'm willing to wait and see what else Chesky's planning.
Really good write up. Airbnb is certainly an independent host favourite and doubling down on co-hosts may be a decent strategy, but although the independents portfolio is significant, the contribution per property with Airbnb dependent agencies, who probably represent double digit inventory percentages, is much higher per property as they book 24/7/365.
The recent drop of cancellation policy changes, software connected agency and host US changes plus services with no shared rewards, guest favourite (forget Superhost) introduction and this is a red flag signal. Add in social challenges blamed on Airbnb and it's not helping. Certainly agencies are derisking and expecting more changes across the board. Add in macro economics and software take rates and it's looking a little challenging for all.
Booking is taking advantage has as many alternative bookable properties as Airbnb does and will no doubt have better non hotel admin tools in planning. Airbnb needs a plan and hotels may not be it. Experiences and services look to be a share price sticking plaster. Hard to see direction. Is Chesky the right man for this part of the journey?
We could certainly do that, but it would add more complexity to our overall hosting setup of the property. And we don't need another channel, the villa is very well booked via Airbnb. So I think we'll focus on getting the perfect setting as a "Superhost" there.
I have commented on BKNG and ABNB before. Both companies are toll booth or entry points to lodging industry. BKNG has a strong position against hotels, ANBN is to vacation rentals. BKNG also covers vacation rentals.
To me, ANBN has saturated the vacation rental market. BKNG has saturated many years ago, and that's why BKNG is buying back shares, to me that's a much more efficient capital allocation strategy, than trying to create a new revenue source (very difficult).
All that said, the TAM is much larger for BKNG, as it's the entry point to the entire travel industry, where ANBN is a much smaller TAM. Between ANBN, and BKNG, BKNG is very clear a winner.
Thanks for your awesome write up though, I don't agree with your point that ABNB has a longer runway simply because it's a younger company, by that logic, a new startup should always overthrown the most dominant incumbents, which is very rare in reality.
As a shareholder, I've grown slightly more skeptical of Airbnb's diversification. I agree services and experiences overall are a bit underwhelming, but I'm willing to wait and see what else Chesky's planning.
Really good write up. Airbnb is certainly an independent host favourite and doubling down on co-hosts may be a decent strategy, but although the independents portfolio is significant, the contribution per property with Airbnb dependent agencies, who probably represent double digit inventory percentages, is much higher per property as they book 24/7/365.
The recent drop of cancellation policy changes, software connected agency and host US changes plus services with no shared rewards, guest favourite (forget Superhost) introduction and this is a red flag signal. Add in social challenges blamed on Airbnb and it's not helping. Certainly agencies are derisking and expecting more changes across the board. Add in macro economics and software take rates and it's looking a little challenging for all.
Booking is taking advantage has as many alternative bookable properties as Airbnb does and will no doubt have better non hotel admin tools in planning. Airbnb needs a plan and hotels may not be it. Experiences and services look to be a share price sticking plaster. Hard to see direction. Is Chesky the right man for this part of the journey?
Shouldn't you list your property at BKNG as well to compare the host experience properly?
We could certainly do that, but it would add more complexity to our overall hosting setup of the property. And we don't need another channel, the villa is very well booked via Airbnb. So I think we'll focus on getting the perfect setting as a "Superhost" there.
Great write-up! What I like even more is your Villa in Mallorca. I'll bear this in mind for my next trip to this wonderful island!
Thanks for the feedback. We would love to host you in our "Villa Calmatzo" on your next trip to the beautiful Southwest of Mallorca.