Priceline Vs Expedia: Who Is Growing Faster?

by Trefis Team
-3.13%
Downside
1864
Market
1806
Trefis
PCLN
Priceline
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Priceline and Expedia are currently the world’s largest OTAs in terms of geographical spread and revenues. Though Ctrip’s market capitalization ($21 billion) recently surpassed that of Expedia’s ($17 billion) post its stake in Qunar and eLong, in terms of reach Ctrip is still more concentrated in China than the rest of the world, unlike these two entities. Currently, Priceline is far ahead of Expedia in terms of revenues and EBITDA. However, Expedia is expected to grow at a much faster rate in the future in terms of both the top and bottom line and its revenues might even surpass those of Expedia’s as per our estimates.

We believe Expedia’s constant acquisitions and consolidation efforts in the U.S., the largest market for online travel, along with its revenue being less concentrated in one division, might be some of the reasons for the company’s more rapid growth. Currently, while Expedia derives 70% of its revenues from hotels, Priceline derives over 90% of its revenues from hotels alone.

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These two OTA giants together enjoy around 18% of the global market share of hotels presently and that is expected to reach almost 30% by the end of our forecast period.

 

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Have more questions on Priceline and Expedia? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Priceline and Expedia

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