Priceline dominates the online travel industry. It quietly goes about its business and continuously puts up strong results year after year, turning a once-beleaguered near-dot-com-bust into one of the most successful technology companies in the world.
This report analyzes Priceline's revenue trajectory and the drivers behind it including gross bookings, daily rates, and take rates. We also provide our outlook on corporate expenses and the company's future margin path. We discuss digital advertising trends both for Priceline and the industry as a whole, focusing on how much the top players spend on traditional versus digital ads and on search versus meta.
This report will cover:
- How the agency model helped Booking.com rapidly scale its hotel business
- Trends in merchant versus agent revenue for Priceline and Expedia
- Why Priceline's margins are so much higher than its peers
- How Booking.com is growing its vacation rental business and its competitive outlook versus HomeAway, Airbnb, and TripAdvisor
- Booking.com's rationale for flight testing
- Priceline's approach to corporate travel and broader industry dynamics and strategy in Asia
- Rationale for Priceline purchasing Momondo
- How much Priceline and Expedia spend on Trivago, TripAdvisor, Kayak, and Google
- What Kayak could be valued at as a standalone entity
- Whether OpenTable is a good asset acquired at a bad price or a fundamentally impaired one
- What Priceline.com actually contributes to the company financially
- How Priceline uses Rentalcars.com to have a more complete OTA platform
- Analysis of Priceline's revenue, gross bookings, room nights, daily rates, and take rates trends along with our forward outlook
- A detailed look at the company's margins, looking at the headwind from variable ad spend and tailwind from fixed cost operating leverage
- Strategic and financial comparison of Priceline with Expedia, Ctrip, TripAdvisor, and Trivago
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