Which Will Be The Most Important Segment To Fuel Priceline’s Future Growth?
The hotel Booking segment is the most important segment for Priceline’s future revenue growth contributing to above 90%. Priceline’s Booking.com is the current leader globally in online accommodation booking. In Q1 2016, Booking.com’s platform included ~900,000 hotels and other accommodations in over 220 countries reflecting a 31% Y-o-Y growth. Booking.com is presently looking into more aggressive penetration into the single-owner, single-room market. Some of the reasons for Booking.com’s widespread popularity are its wide range of accommodation offerings, not charging a booking fee (most online travel agencies charge a 5% to 15% booking fee), and instantly confirming reservations as opposed to a 24 hour confirmation time taken by other websites. The website crossed 100 million customer accounts in 2015 and witnessed its one billionth guest stay. We expect the growth story of Priceline’s hotel segment to continue in the future and for booking.com to be one of the main drivers.
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