Booking Holdings' alternative accommodations accounted for
$2.8 billion in revenue in 2018, or about 20% of the company's total revenue.
CEO Glenn Fogel disclosed the revenue breakdown for the
first time Wednesday during the company's fourth-quarter earnings call. In the
third quarter alone, he said, alternative accommodations reached a milestone in
driving more than $1 billion in revenue.
Around 40% of Booking.com's active customers booked an
alternative accommodation in the past 12 months, Fogel said.
Alternative accommodations are doing particularly well in
European capital cities, with Fogel acknowledging that Booking Holdings is a
Europe-centric company. It will look to increase the number of alternative
accommodations available in the U.S., especially single-family homes in beach
and ski locations.
For example, the CEO said he was looking to reserve a house
in the Hamptons for his family. After checking Booking Holdings'
accommodations, he reviewed some competitors. He walked away thinking, "We've
got to get some more of that stuff."
He called it a "great opportunity" to further grow
As of Dec. 31, Booking.com had more than 5.7 million alternative
accommodation listings, Fogel said.
Booking Holdings reported a 16% increase in revenue to $3.2
billion in the fourth quarter.
Net income was $646 million, up from a $555 million loss in
the fourth quarter of 2017.
For the full year of 2018, Booking Holdings reported gross
travel bookings of $92.7 billion, a 14% increase. Total revenue was up 17% to
$14.5 billion, while net income was $3.99 billion, up from $2.34 billion.
Booking Holdings stock fell nearly 10% in after-hours
trading Wednesday. The company is calling for revenue to be down 2% to flat in the
first quarter of 2019.