How Are Kayak And OpenTable Boosting Priceline’s Growth?

PCLN: Priceline Group logo
PCLN
Priceline Group

Priceline’s advertising and media revenue is growing solidly post its Kayak (2013) and OpenTable (2014) acquisitions. Priceline’s Advertising and media revenues are derived primarily from: revenues earned by KAYAK for sending referrals to OTAs and travel service providers, advertising placements on KAYAK’s websites and mobile apps, reservation revenues earned by OpenTable (a fee for restaurant guests seated through OpenTable’s online reservation service), subscription fees earned by OpenTable for restaurant reservation management services, and revenues generated by Booking.com’s hotel marketing services.
Prior to Kayak’s acquisition (2013), advertising accounted for less than 1% of our valuation for Priceline. Currently advertising accounts for over 6% of Priceline’s value.

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Have more questions on Priceline? See the links below.

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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

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