How Do we Expect Expedia’s Car Rental And Cruise Business To Grow?
Expedia’s car rentals, cruises, and other division is the second largest division in terms of revenue contribution (~12%) to the company. The segment makes up around 10% of our stock price valuation for Expedia. Expedia acquired French car rental company, Auto Escape, in June 2014. The acquisition increased its exposure to the $36.9 billion global car rental industry, which is expected to grow at a compounded rate of around 14% to reach close $80 billion by 2019. Cruises have historically been clubbed together with destination services and offered complementary as part of holiday packages. However, there has been an emergence of cruises as a separate travel product. We can reasonably expect Expedia to capture this trend and get more cruise lines to sell tickets via its websites. As a growing number of people move to buy their travel services online, and the online penetration of travel expenditures increases, companies like Expedia will tend to benefit further. We expect the division to continue growing at a CAGR of ~6% over the next 7 years.
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
Notes:
- Expedia Stock is Up 75% Since 2023. Where Is It Headed Post Q4?
- What To Expect From Expedia’s Q3 After Stock Up 8% This Year?
- Can Expedia Stock Return To Pre-Inflation Shock Highs?
- Can Expedia’s Stock Rebound After Falling 50% Over The Last Year?
- Expedia Stock To Likely See Little Movement Post Q4
- 28% Gains Left For Expedia Stock?
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