How Is The U.S. Travel Industry Faring Currently?
According to the U.S. Travel Association’s Travel Trends Index report, domestic leisure travel in the U.S. is at its lowest growth level since December 2012. This might imply lower domestic travel spending as is evident by the year-on-year decline in travel volume growth.
However, domestic leisure travel is still outpacing the business travel growth in the U.S. It is supported by factors like a healthy labor market and increasing wages. After the recession, inbound international travel helped the travel sector to grow, however, now due to the U.S. dollar’s steep rise with respect to a lot of other currencies, inbound international travel is displaying slow growth. Visits from Canada are on the decline, while Europe is still reeling under the Brexit decision. Hence, despite its lackluster growth, domestic leisure travel is the main driver for the U.S. travel industry currently. However, the slow growth suggests that the second half of 2016 might not witness robust demand as well. International travel is expected to remain flat till this year’s end.
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Implications For Major OTAs
Priceline has almost 90% of its gross bookings coming from outside of the U.S., hence it might not be as impacted as Expedia, which has recently undertaken a consolidation of the U.S. online travel market with its important acquisitions such as Travelocity, HomeAway, and Orbitz. Expedia’s Q2 2016 results were adversely impacted by the integration problems of its acquired entities on its platform.
This, coupled with a sluggish domestic demand, might impact the company negatively because of this slow growth.
Have more questions on Priceline and Expedia? See the links below.
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- What Is Priceline’s Revenue And EBITDA Breakdown?
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- How Has Priceline’s Stock Performed In The Last Five Years?
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- Where Can Priceline’s Growth Come From In The Next 5 Years?
- What Is Priceline’s Fundamental Value Based On 2016 Estimated Numbers?
- Top 3 U.S. OTAs: A Comparison Of Operating Margins
- Why Might TripAdvisor Be An Attractive Acquisition Target For Priceline?
- What Has Been The Immediate Impact Of The Brexit Decision On The Online Travel Companies?
- Which Will Be The Most Important Segment To Fuel Priceline’s Future Growth?
- How Fast Are Priceline’s Advertising Revenues Growing?
- Priceline’s Q2 2016 Earnings Preview
- Priceline’s Robust Q2 2016 Suggests That The Company’s Growth Story Is Expected To Continue
- How Is Priceline’s Hotels Division Expected To Trend?
- How Is Priceline’s Revenue Growth Trending?
- 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
- How Do We Expect Expedia’s Hotels Division To Trend?
- How Is Expedia’s Top Line Trending?
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