The devouring appetite of expedia

Analysis / Expedia has starred in a number of purchases in recent months, as part of a process which leads struggling elbow with elbow with Priceline, array of Booking, who managed to exceed it long ago and wants to achieve it as.

Expedia lives a real rush of acquisitions. As reported last week, by tourism, news HOSTELTUR Expedia buy Orbitz by 1,200 M €, in what would be his third acquisition of an OTA in the last four months.

As discussed in Expedia buys the OTA American Travelocity by 250 M €, the company began the year with a strong acquisition, while at the end of 2014 Expedia completed the purchase of the Australian group Wotif Group, including several brands that operate in Asia Pacific.This month of February also Expedia increases 25% participation in its OTA AirAsia.

Above the OTA has made other big investments such as the purchase of eLong in 2011 to penetrate the Chinese market where it also maintains a strong struggle as Priceline, which has invested in the big Chinese online Ctrip. And in 2013, Expedia acquired Trivago metasearch engine to also have a strong presence in this area of distribution, according to Trivago will expand the influence of Expedia Europe

case is that you as reported to the competition between Expedia and Priceline remains red hot, the competition between the two online is fierce, some companies that in addition to fully maintain hegemony worldwide, as reported in distribution online size matters, as already hogging 47% of the market between the two.

Priceline exceeds it profits and turnover

The truth is that Priceline takes the lead in turnover and profitability. 2014 Expedia results reflect that you have obtained profits of 398 million dollars (347 million euros) in 2014, representing an increase of 71% from 232 million dollars (202 million euros) from 2013. The total turnover of the group reached 5.763 billion dollars (5.030 million euros), representing an increase of 21% from 4,771 million of dollars (4.163 million euros) from the previous year.

Meanwhile, Priceline earned benefits of 2.421 billion dollars (2,135 million euros) in 2014, representing a 28% increase with respect to the 1.892 billion dollars (1,669 million euros) from 2013. The total turnover of the group reached $8.441 billion (7,448 million euros), representing a rise of 24% on the 6.793 billion dollars (5,996 million euros) last year.

Consequences for travel agencies

This whole movement of acquisitions by the large OTA is making limited more and more choices for consumers in the online market. As a recent article in the specialized journal Travelpulse defend this trend can mean an opportunity for travel agents, since they can to assert more differentiation of services offered.

And is the profession of travel agent is revalued, and millennials drive return to the traditional agency with its eagerness to experience different things that need advice.

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Posted by on Feb 26 2015. Filed under General. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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