Booking Holdings: 20% of revenue is from non-hotel accommodations

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Booking Holdings: 20% of revenue is from non-hotel accommodations
Photo Credit: Monkey Business Images/Shutterstock.com

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 the company.

As of Dec. 31, Booking.com had more than 5.7 million alternative accommodation listings, Fogel said. 

Quarterly results

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.

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