Here’s How Expedia Is Planning On Becoming The First $100 Billion Travel Company

December 8th, 2016 by Trefis Team
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According to Expedia’s chief executive, Dara Khosrowshahi, the OTA aims to become the world’s first $100 billion travel agency in the next couple of years. On the recently held 17th annual Expedia Partner Conference he said that Expedia’s fast growth was possible due to the heavy investment in technology in 2007. Expedia is turning 20 years since its founding as a division of Microsoft Corporation. The company, growing at an average of 30% year-over-year in terms of revenues, sees over $71 billion in annual transaction across its platform. We have recently talked about the key strategies that Expedia is focusing upon for its future growth. Here, we talk about a few drivers that will fuel the company’s growth target of becoming a $100 billion entity.

  • International Expansion

Khosrowshahi mentioned that one of the key drivers to reach its $100 billion target is rapid expansion into the international markets. Currently, one-third of Expedia’s bookings come from outside the U.S., which it aims to increase to two-thirds. It is noteworthy to mention that around 90% of Priceline’s revenues come from its international markets. International travel markets are currently in their growth phase. Outbound travelers from economies such as China and Latin America are some of the biggest drivers for the travel industry. Expedia had so far been focusing on consolidating its position in the U.S. with its acquisitions of Orbitz, HomeAway, and Travelocity. The time has surely come for the company to takeover more companies in the international market. Expedia’s chief had also mentioned that its first priority is to expand in the Asia Pacific markets, such as Taiwan, China, and South Korea and the company also wishes to build a good mobile presence there. The company is planning on doubling its investments in India where it estimates that there’s a market for over one billion outbound travelers.

 

  • Product Expansion
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The company is also planning on expanding its products such as railway ticket reservations, currently live in the U.K., to the rest of Europe, the Americas, and Asia.

  • Technological Investments

The company’s investments in technology especially mobile technology, will continue increasing and it is also planning on further building its presence through its own mobile applications, as well as through platforms such as Facebook Messenger.

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