According to fresh analysis from Wall Street, Booking Holdings is establishing itself as a major force in the B2B travel marketplace, putting competitive pressure on the industry’s conventional leader, Expedia. New findings reveal that Booking’s business-to-business activities are much more significant than once believed, prompting a shift in the market’s competitive dynamics among online travel agencies.
Booking’s B2B Growth Outpaces Expectations
BTIG analyst Jake Fuller highlighted in a recent research note that Booking Holdings’ B2B operations achieved about 196 million room nights over the past 12 months. This figure outpaces the estimated 170 million partner room nights recorded by Expedia, a roughly 15 percent advantage. For years, most in the industry assumed Booking’s B2B segment was less impactful because the company does not release detailed reports on its B2B financials. Fuller’s analysis, shared Thursday, challenges this view and suggests that Booking’s strength in the sector has been routinely overlooked.
By contrast, Expedia consistently publishes thorough data related to its B2B division. In the second quarter, Expedia’s B2B segment posted $1.5 billion in revenue—a 23% rise compared to the previous year. Meanwhile, Expedia’s larger direct-to-consumer side reached $2.7 billion, growing by 8% year-over-year.
Unveiling Previously Concealed B2B Activity
Booking Holdings, unlike Expedia, has generally not provided exact figures or extensive details about its B2B dealings. These typically encompass hotel bookings, flights, car rentals, and other products sold to third-party affiliates such as banks and airlines. The absence of this data in public disclosures led many to believe Booking’s influence in the B2B arena was relatively minor. Yet, recent studies indicate Booking’s B2B capabilities could spur significant business restructuring and bring new competitive challenges to the industry.
Competitive Landscape Undergoes Transformation
The recent increase in Booking’s B2B volumes is occurring alongside broader changes in the online travel industry, as companies expand both their business-to-business and direct-to-consumer strategies. With Booking’s B2B sector now considered larger than previously supposed, other players may need to rethink the ways they assess and communicate their B2B achievements. The ripple effect may reshape how online travel agencies cultivate partnerships and diversify their revenue.
Expedia remains transparent about the advances within its partner-focused business, in sharp contrast to Booking Holdings’ more discreet strategy. As Booking reorganizes internally and further details about its B2B activities emerge, the competitive implications for online travel agencies will likely become more apparent.