Booking's Expansion in Flights, Payments, and Vacation Rentals Strengthens Its Network Advantage

Booking has built a leading network of hotel properties and other services, which drives an increasing user base. We see this network effect continuing to expand in developed and emerging markets, as well as vertical markets such as rentals, attractions, flights, and payments (where it looks to focus on near-term investment), resulting in a fully connected trip offering. In developed markets, replicating Booking’s leading network in Europe is proving costly and time-consuming for key competitors, given that around 60%-65% of all hotels in the region are small boutique establishments. In emerging markets, the firm has a presence in China with its Trip.com and Meituan-Dianping partnerships, and in its own Booking.com and Agoda.com platforms, which is crucial. This expanding network positions Booking well for the increasing global shift to booking via mobile applications. Booking.com is a top-10 travel iOS application in 143 markets versus 114 for Airbnb and 22 for core Expedia, according to App Annie on Feb. 5, 2025.