I recognize we are not the leader in this space right now," Fogel said. Priceline CEO Glenn Fogel was asked on the earnings call about competition from "instantly bookable vacation rentals."Īnd although the analyst and Fogel did not mention Airbnb by name, it seemed clear they were talking about the house and apartment sharing Silicon Valley unicorn, which is now worth nearly $30 billion. Priceline, which also owns Kayak, Cheapflights and OpenTable, is worth about $82 billion.Īirbnb is increasingly viewed as a threat for the online travel giants too. In fact, travel research firm Skift recently estimated that Google's travel search business is worth $100 billion, which would make it the most valuable travel company. Related: New Uber CEO, formerly of Expedia, is an outspoken Trump critic
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The search giant bought travel software firm ITA in 2011 and Google has been ramping up its travel presence ever since. People are taking vacations.īut all three online travel companies are dealing with tough competition from Google ( GOOGL) as well. Cruise line Carnival ( CCL) has had a strong 2017 and its rival Royal Caribbean ( RCL) posted strong earnings Tuesday as well. Hotel chains Marriott ( MAR) and Hilton ( HLT) have surged this year and are trading near record highs. What's interesting to note is that while the travel search and booking business is having a rough time right now, the fundamentals for the overall leisure industry are actually strong. Expedia also is in the midst of a management transition after former CEO Dara Khosrowshahi left to take the top job at Uber. This news follows a disappointing earnings report from Expedia ( EXPE) late last month. And TripAdvisor warned that it expects revenue growth to slow in the coming months. Priceline lowered its profit outlook for the fourth quarter Monday, partly due to the increased competition.
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Just think about all the TV and online ads you see for Priceline and its subsidiaries as well as TripAdvisor and Expedia. Related: Confident Americans are rushing to book tripsīoth companies spent more than half their revenues on marketing and advertising in the first nine months of the year, a testament to how brutally competitive the business is.
And TripAdvisor spent $683 million on selling and marketing expenses in the past nine months, a 17% increase from a year ago.
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