Why priceline succeed

The deal was targeted at providing more hotel inventory to customers traveling to Asia from Western markets and tapping the region's bustling growth.

Asia now represents less than five percent of Priceline's bookings, but it's one of the company's fasting-growing markets. Overall, international bookings made up 61 percent of Priceline's total, far more than Expedia and Orbitz , which reported international bookings at 34 percent and 14 percent of their respective totals.

Priceline's revenue has grown at least 24 percent each of the past three years. In a show of its countercyclical mettle, it increased sales by 34 percent during the recession. Boyd wins kudos in the industry for pulling all this off through quiet consensus-building and by holding together a solid team. His chief information officer, Michael Diliberto, marketing head, Brett Keller, and president of North American travel, Chris Soder, have all been with the company since Boyd joined in Priceline now works with a network of more than , hotels in over 90 countries — and Boyd sees further room for expansion.

In Asia and other developing markets such as South America, there will be a "growth in the absolute number of people that have the wherewithal to travel," he says. And even if the financial turmoil in Greece and other European destinations remains a worry, Priceline's revenues are expected to grow 20 percent in , compared with 11 percent at Expedia and 4 percent at Orbitz. If the past few years are any indication, maybe, just maybe, bad times aren't that bad for Priceline.

IE 11 is not supported. For an optimal experience visit our site on another browser. BKNG is the largest online travel company in the world. In addition to Booking. You can book a room, a cruise, a car, or a flight at Priceline. At Agoda. All of the above are now Booking.

The differences among Booking Holdings' travel booking sites largely are an outgrowth of their independent origins. Agoda, purchased in , is headquartered in Singapore and still caters mostly to customers in Asia and the Pacific region. That said, both sites are happy to book anyone for a destination pretty much anywhere on Earth. Perhaps inevitably for a global travel company, Booking Holdings makes most of its money outside the U.

But the U. It doesn't, and for several reasons. The American hospitality industry is dominated by chains to a far greater extent than in the rest of the world. Internationally, independently operated properties and smaller chains hold a greater share of the market.

It serves those properties well to be associated with a globally powerful brand like Booking Holdings. Booking Holding's total revenue in Unlike many second-generation online darlings with astonishingly high prices, Booking Holdings makes money.

Its year-over-year balance sheet data shows revenues rising every year. On August 9, , Booking Holdings released its annual earnings report. Priceline has invested in China in two ways. The first is by building a local presence in the country. Priceline has opened 11 offices in Shanghai that are staffed by hundreds of bilingual customer-service representatives, and it increased its advertising in the country, particularly online.

The second way Priceline invested in China is through a stock investment in local travel-booking service Ctrip International. Read rest of the article at The Motley Fool.

The idea is that not all 4-star hotel properties in a given area are created the same, so these consumers wanted to ensure that they had all the information available before booking, even if it meant not receiving the lowest possible price. Thanks for sharing, Max. I started doing this after I had to change a reservation through Priceline and it ended up being a disaster. The Priceline operators were not helpful, and when I tried to instead work directly wit the hotel, I was told that they could not help me, since the reservation was booked through Priceline.

Given this experience, I started doing this for all flights, hotels and rental cars, and always appreciate working directly with the vendor when problems or scheduling changes arise. Do you think this is something other consumers will catch on to?

If so, it could be damaging to their volumes and sales. You must be logged in to post a comment.