Booking B2B Leads Expedia in Room Nights
A Wall Street estimate suggests Booking Holdings' B2B business booked about 15% more room nights than Expedia's over the past year, challenging the
Booking Holdings' business-to-business segment booked an estimated 196 million room nights in the last twelve months. This figure, from a BTIG analyst, surpasses Expedia's partner business by roughly 15%. The analysis challenges the travel industry's longstanding assumption about which online giant leads in supplying hotel inventory to partners.
According to a research note published Thursday by BTIG analyst Jake Fuller, Expedia's B2B business booked approximately 170 million room nights over the same period. "The consensus is that BKNG's B2B business is probably small given the lack of disclosure, but that's not the conclusion we come to," Fuller wrote. Expedia has traditionally been viewed as the clear leader in travel's B2B sector, which involves selling hotel rooms, flights, and other inventory to banks, airlines, and other partners instead of directly to consumers.
The perception of Expedia's lead has persisted partly due to differing corporate disclosures. Expedia publicly reports financials for its partner solutions division, while Booking Holdings provides no separate financial details for its B2B operations. In the second quarter, Expedia's B2B segment reported revenue growth of 23%, reaching $1.5 billion. This outpaced the 8% growth seen in its larger, consumer-facing business, which generated $2.7 billion in revenue.
Implications for Hotel Distribution
The new estimate indicates Booking's B2B operations are far larger than previously understood. This revelation comes as Booking Holdings is undergoing a corporate reorganization. Industry observers suggest this in-process restructuring could have significant implications for competition among online travel agencies and their partners.
For hotels and resorts, the dynamics between these two B2B powerhouses directly affect distribution channels and potential loyalty programme integrations. The scale of room night volume flowing through each platform influences partnership terms and the visibility of property rates across a vast network of third-party sellers.
The Disclosure Divide
The stark contrast in financial transparency between the two companies has shaped market perceptions. Expedia's detailed public reporting has cemented its image as the sector leader. Booking's silence on the performance of its B2B arm allowed for an assumption of a smaller-scale operation.
Fuller's estimate, derived from Wall Street analysis rather than official company data, upends that narrative. No matter how the numbers are parsed, the analysis suggests Booking Holdings' B2B business is a major force. The ongoing corporate reorganization at Booking could further alter the competitive landscape for hotel inventory distribution.
