Airbnb vs Booking: I ran the numbers and the winner surprised me - Airbnb (ABNB) vs Booking Holdings (BKNG)

Dennis Riosa — Economist | Entrepreneur | Financial Educator

This week, we’re diving into the online travel sector to compare two of the most influential players in the industry: Airbnb and Booking Holdings. While both companies serve travelers and vacationers worldwide, they operate on different business models and target different segments of the market. Let’s explore.

Industry Overview

The online travel industry is booming again as post-pandemic consumer spending shifts toward experiences and international exploration. The main themes shaping the sector include:

• Revenge Travel: Consumers are eager to travel more, spending heavily on lodging and experiences.

• Digital Booking Trends: The move toward mobile-first platforms and seamless UX remains essential for customer retention.

• Global Expansion: Platforms are expanding supply across underserved regions in Asia, Latin America, and Africa.

• Macro Challenges: Currency fluctuations, geopolitical uncertainty, and inflation still pose risks to discretionary travel.

So how do Airbnb and Booking Holdings stack up in this competitive, rapidly evolving environment?

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Airbnb Inc. (NASDAQ: ABNB)

Airbnb was founded in 2008 in San Francisco with a bold mission: to help people “belong anywhere.” What began as a way for travelers to rent air mattresses in someone’s home has evolved into a global platform that redefined lodging and disrupted the traditional hotel industry. Today, Airbnb operates in over 220 countries and regions, offering more than 7 million active listings ranging from city apartments and beach houses to castles and treehouses.

Unlike traditional hotel chains or travel agencies, Airbnb follows an asset-light, peer-to-peer model, meaning it doesn’t own the properties listed on its platform. This makes it highly scalable and capital efficient, allowing rapid geographic expansion with relatively low overhead. The company has also expanded its offerings to include “Airbnb Experiences” such ascurated tours, classes, and events hosted by locals, tapping into the growing demand for immersive travel.

Airbnb’s core demographic skews younger and more digitally native, favoring flexibility and authenticity over luxury. In 2023, it launched "Airbnb Rooms" to appeal to budget-conscious solo travelers and promote cultural exchange. With strong brand recognition, a loyal community of hosts and guests, and continuous feature innovation, Airbnb remains a major force in reshaping global travel behavior.

Recent Stock Performance:
As of May 17, 2025, Airbnb stock closed at $152.63, down from $159.20 on May 10, marking a weekly decline of approximately 4.1%. Despite the dip, ABNB remains up roughly 12% year-to-date, supported by solid earnings and long-term bullish sentiment in travel recovery plays. The stock has traded in a range between $113.24 and $170.43 over the past 52 weeks.

3 Reasons to Invest in Airbnb:

• Strong Brand Loyalty: Airbnb remains the top-of-mind platform for alternative lodging worldwide.

• Innovative Platform: From “Experiences” to “Airbnb Rooms,” the company continually enhances its ecosystem.

• Margin Expansion: Q1 2025 reported record profitability, with adjusted EBITDA margin reaching 37%.

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Booking Holdings Inc. (NASDAQ: BKNG)

Booking Holdings is a titan in the global travel industry. Headquartered in Norwalk, Connecticut, the company operates a powerful portfolio of travel-focused brands, including Booking.com, Priceline, Agoda, Kayak, Rentalcars.com, and OpenTable. Its crown jewel, Booking.com, is one of the most visited travel websites in the world, particularly dominant in European hotel reservations.

Founded in 1997 as Priceline, the company rebranded to Booking Holdings in 2018 to better reflect its flagship brand and global presence. Unlike Airbnb’s peer-to-peer model, Booking operates primarily as an online travel agency (OTA), aggregating thousands of hotels, flights, rental cars, and more into a one-stop-shop for travelers. This B2B2C model allows it to monetize both consumer traffic and supply-side partnerships.

Its strength lies in diversification and scale. With a presence in over 230 countries and territories, Booking Holdings services every travel segment, from last-minute domestic getaways to luxury international trips. Its sophisticated algorithms and high-conversion mobile app have made it the go-to choice for price-sensitive users and business travelers alike.

Booking’s deep inventory, data-driven pricing engine, and resilient demand across all geographies make it a travel sector powerhouse, with the operational muscle to withstand economic fluctuations and capitalize on seasonal surges.

Recent Stock Performance:
As of May 17, 2025, Booking Holdings closed at $3,785.42, up from $3,662.10 on May 10 — a 3.3% weekly gain. Year-to-date, BKNG is up around 21%, outperforming the S&P 500 and most of the travel sector. The stock recently touched a 52-week high of $3,830.90, reflecting strong investor sentiment following impressive quarterly earnings.

3 Reasons to Invest in Booking Holdings:

• Massive Global Reach: The company dominates in Europe and maintains deep penetration in Asia and the Americas.

• High Profitability: Q1 2025 saw operating income rise 18% YoY, with strong free cash flow.

• Flexible Supply Model: Hotels, resorts, and alternative stays provide diverse inventory and defensiveness.

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So… which travel stock would YOU invest in?

Would you choose Airbnb, with its disruptive business model and direct host-guest network?

Or do you prefer Booking Holdings, with its unmatched scale, brand portfolio, and proven profitability?

Let me know in the comments. I want to hear how you think through this choice.

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SPOILER ALERT!

Here’s my personal take on the two stocks:

While both companies offer compelling long-term potential, Booking Holdings (BKNG) currently appears to be the more attractive investment. Its diversified revenue streams, broad geographic exposure, and consistent profitability make it a solid compounder in the travel space. The company’s OTA model provides flexibility in adapting to demand cycles and maintaining high margins.

Airbnb, on the other hand, remains a disruptive innovator with a passionate user base and strong brand. Its asset-light model allows for explosive margin potential, and the company has proven resilient in turbulent times. However, the current valuation, coupled with recent softness in bookings from urban areas, makes me slightly cautious.

That said, both companies are benefiting from the long-term rebound in travel and for many investors, holding both could be a smart bet on the future of global tourism.

But that’s just my opinion; this is not financial advice and this content is for educational purposes only.

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Every Friday: STOCK COMPARISON CHART

I post a new side-by-side stock breakdown every Friday. If you want to stay on top of my insights and get more valuable information with each post, make sure to subscribe.

And if you liked this one, please share it with a friend who’s into markets, investing, or in this case travel.

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HERE ARE THE 1-YEAR DAILY CHARTS:

AIRBNB INC. (NASDAQ: ABNB)

Created with TradingView

BOOKING HOLDINGS INC. (NASDAQ: BKNG)

Created with TradingView

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If you were only to invest in one of the two, which one would you pick? Let me know your choice in the comments and tell me why you would choose one over the other.

And if you want more, I suggest you check out last week’s Friday Stock Comparison between JPMorgan and Bank of America just a click away.

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With love,

Dennis Riosa
Make | Things | Happen