How Rapidly Is Expedia’s Car Rentals, Cruises, And Other Segment Growing?
Car rentals, cruises, and other contribute around 12% of Expedia’s revenue. The segment is growing solidly post Expedia’s acquisition of French car rental company, Auto Escape, in June 2014. The acquisition increased its exposure to the ~$37 billion global car rental industry, which is expected to grow at a compounded rate of ~14% to reach close to $80 billion by 2019, according to Transparency Market Research. While cruises have historically been clubbed together with destination services and offered complimentary as part of holiday packages, there has been an emergence of cruises as a separate travel product. We can reasonably expect Expedia to capture this trend and get more cruise lines to sell tickets via its websites. Also, on July 18th Expedia announced that in partnership with SilverRail and supported by the Association of Train Operating Companies and the Rail Delivery Group (RDG), Expedia’s UK customers will soon be able to purchase rail travel on its platform. We expect the company to expand its rail travel offerings across more geographies in the future.
While Expedia’s overall revenue is growing at a CAGR of 22% over the three-year period ending 2016, its car rentals, cruises, and other segments is growing at a CAGR of around 58%.
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