p2
1618 days ago
 

For Priceline, Booking.com, Agoda — it’s a sharing and marketshare thing

p2Priceline continued its torrid growth, particularly internationally, in the fourth quarter and increasingly is sharing hotel inventory across its brands.

Here’s the tale of the tape:

  • Profits more than doubled — 130% actually — to $78.5 million.
  • Gross bookings jumped 53% to $2.3 billion in the fourth quarter, and international revenue, fed by Agoda’s growth in markets like Thailand, for instance, climbed 74.9% to $222.9 million.
  • In the U.S., domestic gross bookings rose 21% because of growth in hotel sales — both of the retail and merchant/opaque variety — as well as retail airline tickets and vacation packages. Sales of opaque airline tickets and rental cars were weak.

As Priceline continues the growth of its Booking.com and Agoda units internationally, it is accelerating its leveraging of that inventory across its brands.

Priceline President and CEO Jeffery Boyd told analysts yesterday afternoon that the company has begun experimenting with showing Booking.com North American hotels to Priceline.com customers. Booking.com, he says, already is Priceline.com’s primary source of European hotels.

Booking.com’s hotel portfolio now includes 78,000 hotels dispersed across 76 countries.

In the future, Boyd expects the keyword market to heat up as “international hotels [are] getting more aggressive in competing for keywords” in the hopes of attracting direct sales.

However, Priceline’s companies may avoid that encumbrance to some extent.

He says: “But for small independent hotels that make up the majority of the international markets in which we do business, they just don’t have the resources and the expertise to aggressively market on a lot of different channels … ,” Boyd says. “[It's] very hot for them to get distribution through affiliates, it’s very hard for them to do search marketing in multiple languages. So I think there’s a very significant limit to how aggressive they can be and trying to market directly in online channels.”

 
 
Dennis Schaal

About the Writer :: Dennis Schaal

Dennis Schaal was North American editor for Tnooz.

 

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  1. Dennis Schaal

    Dennis Schaal

    Martin: Now, we’ll have to see if Expedia’s Venere and Orbitz Worldwide’s RatesToGo makes their presences felt. But, Priceline sure seems to be making inroads, quarter after quarter.

     
  2. Dennis Schaal

    Dennis Schaal

    Thanks, Kristin, much appreciated!

     
  3. Kristin Zern

    Great info. Thanks Tnooz for such great reporting!!! Kevin May and Dennis Schaal very awesome work!!!!! I appreciate it a lot. Makes my job so much easier.
    KUDOS! Kristin Zern, Executive Director, ATME

     
  4. Martin Rusteberg

    priceline really made an excellent strategic decision in taking over booking.com and agoda at the right time and at very attractive prices (not even only in hindsight…).
    if looking at the other international efforts as in pricline europe, priceline hong kong and priceline singapore, one can only wonder why they drag these operations along.

     
 
 

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