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Extensive SWOT Analysis of Booking com – World’s Leader in Online Travel Booking

Updated on: Dec 30, 2021
SWOT Analysis of Booking com - Featured Image

Last time, we discussed the SWOT analysis of Priceline, which is likely the world’s most well-known travel companion. This time, we’ll take a closer look at the SWOT analysis of Booking com.

You might have come across various online travel websites and even booked one for yourself but, Booking.com isn’t simply a website for booking hotels; it’s also a piece of technology that makes travelling easier. The market for internet travel has been levelled by a Dutch online travel service for lodging reservations and other travel items. 

With over 1.5 million hotel listings worldwide, on Booking.com you will face no trouble finding a place to sleep for the night, booking a last-minute flight or train, renting a car for your leisure or for the airport, or scheduling a table for yourself to savour the city’s greatest food.

But how Booking.com did place itself in one of the leading companies in the travel industry by sales? Well, in spite of all the external and internal forces Booking.com is one of the trusted brands due to its stable quality service and the huge number of tie-ups with hotels across the globe. 

Another aspect of Booking.com’s success is it has kept up adopting all the digital marketing methods and technology advances year after year. As the world moves online, marketing changes, and if you want to stay up to date on the latest and greatest, check out our Free MasterClass on Digital Marketing 101 by our CEO and Founder, Karan Shah.

In this blog, we’ll go through Booking.com’ strengths, weaknesses, opportunities, and threats in-depth, but before starting with the SWOT analysis of Booking com, first, let’s learn a little about the company.

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About Booking.com

SWOT Analysis of Booking com - Booking.com

The travel partner that places its client’s memories in 85,000 destinations across the world through its various stay partners and other travel amenities. Booking.com was founded in 1996 in Amsterdam, Netherlands as a tiny Dutch start-up and has since evolved to become the world’s leading digital travel company

Booking.com’s purpose is to make travelling across the world more accessible to everyone by investing in technology that removes the friction from travel. Booking.com connects millions of visitors to unique experiences, a variety of transportation options, and fantastic places to stay – from houses to hotels and more. 

Booking.com, one of the world’s leading online travel services according to market share, has over 28 million reported lodging listings, including over 6.2 million hotels, homes, apartments, and other unique places to stay, and is available in 43 languages. Booking.com makes it simple to go wherever you want to go and do anything you want with 24/7 customer service.

 

Quick Stats on Booking.com
Founder Geert-Jan Bruinsma
Year Founded 1996
Origin Amsterdam, Netherlands
No. of Employees 19,400+
Company Type Subsidiary
Market Cap $ 97.91 Billion (2021)
Annual Revenue $ 6.8 Billion (2020)
Net Income/ Profit $ 59 Million (2020)

 

SWOT Analysis of Booking com - Booking.com Website Outlook
(Booking.com Website Outlook, Source: Triptease)


Services by Booking.com

  • Flight/ Train Finder
  • Hotel Accommodation
  • Car rental
  • Restaurant reservation
  • Business Apartments


Competitors of Booking.com

  • Tripadvisor
  • Airbnb
  • Expedia Group
  • Despegar.com 
  • Priceline.com


SWOT Analysis of Booking com

As the name goes a SWOT analysis tells us about the strengths, weaknesses, opportunities and threats of a company. Such analyses are often done by companies to know their standing in the market. These analyses are not only done by companies to see their standing but also to see the standing of their competition.

To better understand the SWOT analysis of Booking com, refer to the infographic below:

SWOT Analysis of Booking com - SWOT Infographics of Booking com

So let us first start by looking at the strengths of Booking.com from the SWOT analysis of Booking com.

Strengths of Booking.com

  • Booking Holdings is Backing: One of the best American travel technology companies Booking Holdings operate the technological part of booking.com. Booking Holdings are already holding the operations of some of the biggest travel booking sites including Priceline, Agoda, Cheapflights and many more.
  • Customer Service: Booking.com takes a customer-centric approach to its business. All consumer feedback and criticism is taken seriously by the company, and it is instantly implemented in its business procedures and design. This makes customers feel valued and included in the company’s culture, which enhances their bond with the brand.
  • Robust Employee Training: Booking.com has also established training for all of its workers to familiarise them with the company’s customer service procedures. Employees benefit from the training since it helps them improve their abilities and prepares them for smooth client encounters.
  • Good Returns on Capital Expenditure: Booking.com has a solid track record of completing new initiatives and generating good returns on investment by establishing new revenue streams.
  • Affordable Hotels: With the world’s growing hospitality industry, customers can easily book any hotel under Booking.com for a minimum charge of Rs. 3,000 to Rs. 5,000. This provides customers with complete hotel facilities with no interruptions.
  • Range of Hotels: Booking.com delivers a variety of hotels enclosing mid-market to the upscale market.
  • Facilities & Services: It can be difficult to find a suitable hotel with fresh toiletries, clean rooms, and affordable basic breakfast service. Finding this at a reasonable price is always difficult for the middle-class and this is where Booking.com comes into play. 


Weaknesses of Booking.com Hotels

  • Unwilling to Convince: Reluctance in customers or clients to use the internet for financial transactions like booking tickets online.
  • No Direct Customer Interaction: No direct customer-seller interaction due to this sometimes fraud data can be spotted on websites. 
  • Significant Losses: It has suffered significant losses in recent years, but with advances in technology they employ and their services, Booking.com is regaining ground.
  • Difficulty in On-ground Operations: Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers.


Opportunities for Booking.com

  • Sustainable Stay: Customers of Booking.com in the Indian market are looking to stay at hotels with sustainable accommodation and Booking.com is working on recommending sustainable hotels on their application and website by providing a badge of credibility to such hotels.
  • Budget Hotel Segment: Booking.com should make its presence in the budget hotel segment because there is an increasing demand for budget hotels in India. Due to frequent travels of officials. 
  • Full Utilization of Internet: Utilization of the internet to display hotels, offer visibility, presence, marketing and distribution. Showcasing affordable hotels which are an ideal option for a weekend stay will increase the bookings at Booking.com. 

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  • Business Class: There is a surge in the number of business travellers in India. This is where Booking.com can launch their business suit for entrepreneurs who are looking for luxury stay and accommodation at their respective destinations. 
  • Tie-ups With Travel Partners: Booking.com can tie up with bus travel businesses such as redBus. So that if redBus is promoting a group tour then Booking.com can work as an accommodation partner for that tour. If you wish to learn more about the SWOT analysis of the largest online bus ticket company redBus, you should read the SWOT analysis of the redBus blog by us. 


Threats to Booking.com

  • Increasing Competition: Booking.com competes in the hyper-saturated market of mid-tier hotels and faces fierce competition from MakeMyTrip and FabHotels. Even though they have a strong presence in the industry, they are dwarfed by the revenue of their competitors.
  • Customer Expectations: Due to increasing options of online hotel booking, customers are more possessed to urge online budget hotels with all the facilities at low prices. This habit of customers has affected the revenue generation of Booking.com.
  • Criticism & Controversies: Booking.com has been in several allegations and controversies which dissolve the brand image of Booking.com. Controversies and forced actions such as leak of customers’ data, disputes with hotels, prohibitions against offering lower rates in Swedish and Italian countries to grow travel agents business are some of the many.
  • Services By Competitors: The hospitality experience by Booking.com cannot match the level of existing market leaders. Competitors such as Oyo Rooms are deliberately capturing the market with their premium hotel segment. 
  • Safety Concerns: After a pandemic, people who stay in hotels are more likely to stay in a sanitized and safe hotel. A careless step from hotel partners will create a negative image of Booking.com as an unsafe stay and could face some legal action and cases from customers. 
  • Misbehaviour With Customers: Any sudden misbehaviour and informal way of talking with customers by the hotel manager or welcoming staff will affect the brand image of Booking.com. Travellers will not prefer to book hotels next time from Booking.com.


This ends our extensive SWOT analysis of Booking com. Let us conclude our learning below.

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To Conclude

From the SWOT analysis of Booking com, we can now understand that Booking.com is well-known among several countries in offering burgeoning budget hotels. It has established a strong foothold in the highly competitive market. However, it has suffered significant losses in recent years, but with advances in technology they employ and their services, Booking.com is regaining ground. 

Developing strong on-ground operations is critical in this sector to provide a consistent experience for customers. This makes hospitality a capital-intensive business because it necessitates significant funding and effort to establish.

So, we also now know that Online Marketing skills are gaining importance in today’s corporate world. As in the case of Booking.com, digital presence only helped them to come up with a solution and establish a great venture out of that. You can learn these digital marketing skills too, with our IIDE’s 3 Month Advanced Online Digital Marketing Course.

We hope the blog on the SWOT analysis of Booking com has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Booking com, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Booking com in the comments section below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

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