Amidst an increase in regulation for privately listed short stay accommodation, Booking.com surpassed Airbnb in 2024, according to consumer expenditure data from Fonto.
Analysing daily consumer transactions shared with Fonto by more than 80,000 Australians, 2024 saw Booking.com overtake Airbnb in market share and average spend metrics in the Travel category for the first time since data was collected in 2021.
Last year saw increased regulatory scrutiny on private short-stay accommodation by various levels of government:
- From a regulatory & compliance point of view, Airbnb was hit with a $15M fine and potential compensation payouts of up to $15 more in late 2023 as it faced misleading pricing accusations from the Australian Competition & Consumer Commission (ACCC).
- In Victoria, the launch of the State Government’s “Airbnb tax” of 7.5% on all short-stay accommodation from January 1 is expected to significantly impact demand and competitive pressures throughout 2025
- Similarly, some local councils elsewhere in Australia are applying limitations to the number of days properties can be made available for short stays. Byron Bay for example, placed a 60 day annual limit on properties within its council area in late 2024 with other councils considering similar constraints to ease housing and affordability pressures.
With these pricing, trust and competitive pressures all coming to the fore, Booking.com steadily grew its market share throughout 2024 to 22.9% for the December 2024 quarter, surpassing Airbnb’s 20.3% share. This marked the 3rd consecutive quarter of market leadership by Booking.com.
Additionally, customers with Booking.com spent 5% more on average per transaction than Airbnb during the December 2024 quarter, a significant turnaround from 2022 and 2023 where their average spend per transactions were significantly lower than the competitor.
2025 will continue to be a battleground in the category as both brands respond to a shifting competitive environment.
For more information regarding consumer expenditure data for travel or for a category relevant to you, reach out to the team at insights@fonto.com.au
