Though Google’s entry into tourism bookings might indicate a future expansion into online travel booking, given their current positions in the travel industry, the two OTA giants do not have too much to fear as of now.
Recently, Google introduced a tourism booking mobile application called Google Trips. The application aims to make the traveling process smooth by consolidating the flight, hotel itineraries through Gmail, and organizing travel plans into categories such as Day Plans, Reservations, Things to Do, Food & Drink, etc. A GoodThink study had found that around three-fourths of the travelers find it stressful to keep in mind all the nitty gritty details during their trips. The application currently includes the most noteworthy itineraries for the world’s top 200 cities.
Priceline and Expedia are currently two of the most powerful online travel agents in the world. Google’s application is mostly to help tourists with their day plannings and does not look like a direct competitor. However, even if Google plans on expanding its services and ultimately offers online travel booking services, it will still take Google a considerable amount of time to reach the stature of these two leaders.
- Do Hotel Chains’ Loyalty Programs Pose A Significant Threat To The OTAs?
- Key Take-Aways From Priceline’s Q4 2016 Earnings Call
- What To Watch For In Priceline’s Q4 2016 Earnings
- Why Did Priceline Decide To Acquire The Momondo Group?
- How Might President Trump’s Recent Travel Ban Impact The Various Stakeholders Of The Travel Industry?
- What Are Some Of The Key Drivers For The Online Travel Industry In 2017?
According to our estimates, Priceline and Expedia together occupy around 20% of the total occupied hotel rooms currently and the percentage is going to reach close to 30% by the end of our forecast period.
The figure increases even more when we consider other emerging players like Ctrip or TripAdvisor (which is gradually entering the hotel booking arena with its Instant Booking platform).
Google does have some significant comparative advantages. Being the world’s largest search engine it has a massive storehouse of data to use to its advantage. Also, Google’s market capitalization stands at around $550 billion (whereas Priceline’s at $70 billion and Expedia’s at $17 billion). However, not all the ventures of bigger companies turn out to be a success especially since these OTA leaders have specialized experiences in the travel domain.
Google Trips does not pose a significant threat to either Priceline or Expedia in the near future, however, like everything else, we can only speculate the various scenarios that can pan out in the long run.
Editor’s Note: We care deeply about your inputs, and want to ensure our content is increasingly more useful to you. Please let us know what/why you liked or disliked in this article, and importantly, alternative analyses you want to see. Drop us a line at firstname.lastname@example.org
Have more questions on Priceline and Expedia? See the links below.
- What Is Priceline’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Priceline’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- 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?
- What Drove Priceline’s Revenue And EBITDA Growth Over The Last Five Years?
- Where Can Priceline’s Growth Come From In The Next 5 Years?
- What Is Priceline’s Fundamental Value Based On 2016 Estimated Numbers?
- 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?
- Why Did Priceline Discontinue Its ‘Name Your Own Price’ Option For Flight Bookings?
- How Is The U.S. Travel Industry Faring Currently?
- How Might Booking.com Further Help In Priceline’s Growth In The Vacation Rental Segment
- 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?
- 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?
- Expedia’s Evolved Relationship With Marriott International And Its Significance