How Do We Expect Expedia’s Hotels Division To Trend?
Expedia’s hotels division contributes around 70% of its revenues and around 78% of our stock price valuation for the company. Being the second largest online travel agency (OTA) in terms of revenues, Expedia has one of the most extensive network of accommodations on its platform. The company grows through both organic and inorganic means. Expedia’s 2015 acquisitions included big players including Travelocity, Orbitz, and HomeAway, which helped in the consolidation of the U.S. OTA market. Internationally, Expedia entered into a partnership with China’s OTA leader, Ctrip, and sold its stake in the loss-making Chinese OTA, eLong. As a growing number of people move to buy their travel online, and the online penetration of travel expenditures increases, companies like Expedia will tend to benefit further. We expect the growth story of Expedia’s hotel segment to continue in the future with a CAGR of ~14% over the next 7 years.
[trefis_forecast ticker=”EXPE” driver=”0092″]
Have more questions on Expedia? See the links below.
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- What Drove Expedia’s Revenue And EBITDA Growth Over The Last Five Years?
- What Is Expedia’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- Expedia Year 2015 Review
- How Have Expedia’s Different Segments Performed Over The Last Five Years?
- Expedia Q1 2016 Earnings Results
- How Does Expedia’s Financial State Currently Look?
- What Percentage of Expedia’s Stock Price Can Be Attributed To Growth?
- Who Relies More On Debt: Priceline Or Expedia?
- What Might Be The Long-Term Impacts Of Brexit On The Online Travel Agencies?
- Where Might Expedia Be Looking For Acquisition Opportunities Currently?
- Expedia’s Q2 2016 Earnings Preview
- Expedia’s Second Quarter Growth Was Undermined By Integration Issues Of Its Acquired Entities
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