Ava AbbottAirbnb is an online hospitality service that connects guests with hosts. It is based in San Francisco and was founded in 2008 by Brian Chesky, Joe Gebbia, and Nate Blecharczyk.
Currently, Brian Chesky is the CEO of Airbnb. The platform connects tourists, travelers, and vacationers with hosts who offer their homes and apartments for temporary rental. Airbnb has over 7 million listings run by 4 million hosts. It facilitated 193 million bookings in 2020. [1]
With its unique business model, Airbnb entered the exclusive club of the “unicorns” with over a $1 billion valuation in 2019 and went public in December 2020. The company generated $3.4 billion in revenues for 2020. Currently, Airbnb has 5,597 employees and 27 cities globally. [2]
The health crisis in 2020 devastated Airbnb’s earnings and prompted the company to implement over 100 changes in 2021. Airbnb also added new search options on its app. These changes will help the company fend off stiff competition from Booking.com, Vrbo, and other top players. [3]
Here is an in-depth analysis of top Airbnb’s competitors and alternatives:
1. Booking.com
Year founded: 1996
Headquarter: Amsterdam, Netherlands
Booking.com is an online platform for travel and hospitality services. It is part of Booking Holdings, one of the top players in hospitality, tourism, and travel services. Booking.com comes with a guest-friendly, easy-to-navigate user interface and instantly bookable options.
The platform offers over 27 million listings in more than 130,000 destinations across 227 countries.
Booking Holdings owns several brands in the hospitality, travel, and tourism sectors, including Rentalcars.com, Kayak, and Priceline. These brands give the company an edge over Airbnb. Its 2019 revenue of $15 billion was three times more than Airbnb.
The health crisis wiped out 54% of its sales in 2020 and decreased its revenues to $6.796 billion, more than double Airbnb’s revenue. Booking Holdings is the top competitor for Airbnb. [4]
2. Vrbo
Year founded: 1995
Headquarter: Austin, Texas
Vrbo is a website for vacation rentals that is similar to Airbnb. It has around 2 million house rentals globally. Most of its listings are bigger than properties on Airbnb. Also, Vrbo is more refined because its hosts tend to be professionals who list vacation rentals for a living.
According to an analysis by Key Data, Vrbo outperformed Airbnb with more than double the number of bookings in 2020. Vrbo’s average revenue per booking was $1,505, Airbnb was second with $941, and Booking.com was third with $695. Vrbo is the perfect Airbnb alternative and its second top competitor. [5]
3. FlipKey
Year founded: 2006
Headquarter: Boston, Massachusetts
FlipKey is a home rental service and a subsidiary of TripAdvisor. The platform offers a wide range of vacation rental options to guests. The main competitive advantage for FlipKey over Airbnb is its pay-per-booking pricing model that allows guests to pay after they get a reservation.
The company’s extensive catalog includes more than 830,000 listings in 190 countries. It charges a 3% host fee per booking based on the host’s total rent and 8-16% guest booking fee versus 10-14% for Airbnb.
TripAdvisor generated $604 million in 2020, down from $1.56 billion in 2019. It operates as part of the ‘TripAdvisor Rentals’ segment, increasing its competitive advantage. FlipKey is a worthy top Airbnb competitor. [6]
4. Vacasa
Year founded: 2009
Headquarter: Portland, Oregon
Vacasa is a vacation booking platform and one of the most tech-driven Airbnb alternatives. The platform exploits AI-driven tools for setting prices and scheduling post-stay cleans. It also utilizes 3D technology to give potential guests immersive tours of the properties they wish to book.
Vacasa sets itself apart from Airbnb and other competitors by providing end-to-end services. In an interview with CNBC, Vacasa CEO Matt Roberts said, “the company expects to generate more than $1.25 billion in gross bookings in 2021.”
It seeks to go public in 2022. Vacasa’s innovative use of technology makes it a formidable competitor for Airbnb. [7]
5. HomeToGo
Year founded: 2014
Headquarter: Berlin, Germany
HomeToGo is a search and comparison website that aggregates over 17 million listings in more than 200 countries. The company boasts of a long list of partners, including Airbnb, Booking.com, TripAdvisor, and more. It is one of the best Airbnb alternatives for budget tourists and travelers. HomeToGo generated $64 million in revenues in 2018 and $88 million in 2019.
Lakestar SPAC I seeks to take HomeToGo public later in 2021 at a $2.2 billion valuation. SPAC I raised about $335 million in February 2021 as part of HomeToGo’s IPO. SPAC’s backing increases HomeToGo’s competitive advantage over Airbnb. [8]
6. Sonder
Year founded: 2012
Headquarter: San Francisco, California
Sonder is a short-term apartment rental company that offers rooms with a hotel experience. It signs 3-5 year leases and partners with landlords to turn their properties into high-end hotel rooms. The company manages more than 12,000 rooms across 28 cities and six countries.
In 2020, Sonder closed a $170 million Series E round with a valuation of $1.3 billion. Sonder’s ever-growing portfolio makes it a worthy top Airbnb competitor. [9]
7. Outdoorsy
Year founded: 2015
Headquarter: Austin, Texas
Outdoorsy is a peer-to-peer rental agency with the world’s largest marketplace for campervans, motorhomes, and RVs. Before 2020, the company was growing 400% year-over-year. From April 2020 to October, Outdoorsy grew a whopping 4,600% and delivered 44% of its business. According to Jeff Cavins, CEO of Outdoorsy, its 37 million members booked over 3.2 million rental days in 2020 and pushed the company closer to $1 billion.
In December 2020, Outdoorsy saw a 70% spike in RV bookings among millennials from 2019. First-time renters made up 90% of the platform’s bookings in 2020. With over 14 million RV rentals to choose from, Outdoorsy is a worthy and unique Airbnb competitor. [10]
8. TurnKey Vacation Rentals
Year founded: 2012
Headquarter: Austin, Texas
TurnKey is a vacation rental company that manages premium homes in more than 80 destinations across the United States. The company operates more than 6000 vacation rentals and homes in premium destinations markets, including Los Angeles, Napa, Asheville, Holden Beach, and Santa Fe. It delivers exceptional service and provides a door code to each guest instead of a key.
In March 2021, Vacasa signed an agreement to acquire TurnKey. The deal brings together two top Airbnb competitors with complementary portfolios and capabilities. The acquisition increases TurnKey’s competitive edge over Airbnb. [11]
9. Agoda
Year founded: 1998
Headquarter: Singapore
Agoda is one of the largest online travel agencies in Asia. The company operates as a subsidiary of Booking Holdings and offers more than 1.8 million high-quality accommodations. It added a feature for booking flights on its site in 2019.
In 2020, Agoda was the first online travel agency in Asia to digitize quarantine programs (ASQ) hotel bookings. It has a dedicated “ASQ” booking platform for only Thailand and Hong Kong and seeks to expand the program across Asia. Booking Holdings’ backing increases Agoda’s advantage over Airbnb. It is a worthy Airbnb competitor and alternative in Asia. [12]
10. Onefinestay
Year founded: 2009
Headquarter: London, UK
Unlike Airbnb, Onefinestay is a luxury website that offers upscale vacation rentals in major cities like London, LA, New York, Paris, and Rome. It vets each host for its quality, elegance, and comfort to attain a curated collection. In 2016, Accor acquired Onefinestay.
In July 2020, Onefinestay launched 40 premium villas in Saint-Tropez. The cost of renting these villas start from $18,000 and allows travelers to experience the French Riviera. Accor’s backing gives Onefinestay an edge over Airbnb. [13]
11. VTrips
Year founded: 2020
Headquarter: Florida
VTrips is a rental property management company that operates in the United States. The company has acquired more than 15 companies after rebranding from Vacation Rental Pros in 2018. In June 2021, VTrips acquired Resort Collection, Distinctive Beach Rentals, and Resort Property. These acquisitions strengthen VTrips’ presence in Florida and Tennessee.
The company now manages more than 3000 exclusive homes and condominiums in five states, including Hawaii, Mexico, and South Carolina. VTrips’ growing portfolio makes it a top Airbnb competitor. [14]
12. WeNeedaVacation.com
Year founded: 1997
Headquarter: Brewster, Massachusetts
WeNeedaVacation.com is a vacation rental website that matches vacationers and homeowners. It has around 100 employees and lists more than 4,000 properties in Cape Cod, Martha’s Vineyard, and Nantucket. In the past few years, the website has been attracting more than 175,000 vacationers per year.
WeNeedaVacation lists a wide range of properties, allowing vacationers to find ideal rentals with the right price, size, and amenities. With around $20 million in annual revenues, Airbnb dwarfs WeNeedaVacation. However, its unique offering makes it a worthy Airbnb competitor. [15]
13. THIRDHOME
Year founded: 2010
Headquarter: Brentwood, Tennessee
THIRDHOME is a home exchange club with more than 10,000 registered luxury homeowners in over 90 countries. The platform allows homeowner members to swap their second luxury homes for stays in different destinations. It lists homes with an average value of $2.25 million, making it the ideal vacation rental service for millionaires.
In 2020, THIRDHOME entered into a strategic partnership with TurnKey to extend its services and perks to middle-class rental owners. It offers luxury home-stay options to TurnKey homeowners, which increases THIRDHOME’s competitive edge over Airbnb. [16]
14. HouseTrip
Year founded: 2009
Headquarter: Oxford, UK
HouseTrip is an online rental service owned by TripAdvisor. It offers 400,000 vacation homes, holiday villas, apartments, and cottages in 160 countries. With $30 million in annual revenues, the company lags far behind Airbnb. But TripAdvisor’s and its growing catalog give it an edge.
In 2020, TripAdvisor was looking to sell its vacation rental brands, including FlipKey, HouseTrip, VacationHomeRentals, Holiday Lettings, and Spain’s Niumba. These vacation rentals generate around $165 million, nearly 11% of TripAdvisor’s total annual revenue. Losing TripAdvisor’s backing can undermine the company’s competitive edge. [17]
15. Plum Guide
Year founded: 2016
Headquarter: London, UK
Plum Guide is an exclusive property listing site that offers the world’s best holiday homes. The company reviews all the homes available in a destination and selects the top 3% to feature on its platform. Plum Guide is the go-to platform for guests looking to rent the best homes.
In October 2020, Plum Guide partnered with BookingPal, a cloud-based travel technology company. Plum Guide can use more than 80 property management software integrations to access rental rates and data in real-time. The partnership increases Plum Guide’s competitive advantage over Airbnb. [18]
References & more information
- Curry, D. (2021, May 6). Airbnb Revenue and Usage Statistics. Business of Apps
- Menze, J. (2021, May 13). Airbnb revenue climbs 5% as travel rebounded in Q1 2021. Phocus Wire
- Bursztynsky, J. (2021, May 24). Airbnb announces a big new update focused on flexibility. CNBC
- Sorrells, M. (2021, Feb 24). Booking Holdings focuses on payment platform, connected trip, and U.S. growth as 2020 revenue drops 55%. Phocus Wire
- Hinote, A. (2021, Jan 24). Vrbo Is Performing Better Than Airbnb for Vacation Rental Managers. VR Mintel
- Fors, A. (2020, May 27). Everything You Need to Know About FlipKey. Hotel Tech Report
- Mody, S. (2021, April 20). Explosive demand for vacation rentals has made property managers a hot commodity. CNBC
- O’Neill, S. (2021, Jun 4). Lakestar Plans to Take HomeToGo Public in $1.2 Billion Bet on Vacation Rental Search. Skift
- Bertoni, S. (2020, June 24). Hospitality Startup Sonder Raises $170 Million at a $1.3 Billion Valuation during Covid-19 Travel Collapse. Forbes
- Chang, B. (2021, Jan 14). RV rental platform Outdoorsy says it will hit $1 billion in sales next month after seeing explosive growth during the pandemic. Business Insider
- Stevens, P. (2021, March 11). Vacasa to acquire TurnKey Vacation Rentals. Short Term Rentals
- Hamdi, R. (2021, Apr 26). Agoda Leads an Asia Experiment in Quarantine Hotel Bookings. Skift
- Onefinestay (2020, July 8). Hospitality Brand Onefinestay grows its Villa Collection. Accor
- Stevens, P. (2021, June 4). VTrips expands portfolio to 3000 properties. Short Term Rentals
- Weedon, E. (2021, March 09). Cape & Islands Rental Bookings Are Up 2x. Press Releases
- Stevens, P. (2020, Oct 22). TurnKey Vacation Rentals and THIRDHOME announce the collaboration. Short Term Rentals
- Schaal, D. (2020, Mar 13). TripAdvisor Is Trying to Sell Its Vacation Rental Businesses. Skift
- Stevens, P. (2021, May 5). BookingPal announces partnership with Plum Guide. Short Term Rentals
Kevin Johnson
Brianna Parker
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