July 19, 2018
Expedia says packages are better for hotels than room-only
Hotels are achieving higher average daily rates (ADR) from consumers who book packages rather than just rooms, according to data from Expedia Group.Read more
September 19, 2017
There’s no doubt that the Priceline Group is a juggernaut, but Skift Research calculates that Google’s travel business could be worth as much as $100 billion — and that would make it larger than Priceline with its $90 billion market cap.
At $100 billion, Google’s travel business contributes about 15 percent to Google’s $650 billion market cap.
For the first six months of 2017, Priceline’s performance-advertising spend was up 23.5 percent compared with the year-earlier period. Expedia does not disclose quarterly ad spend specifically, but direct marketing costs increased 28 percent, and that would be a good approximation of its growth rate. This suggests that 2017 digital ad spend for Priceline is on pace for $4.3 billion, and Expedia for $2.9 billion.
Running through a comparable growth path for Airbnb; metasearch engines such as Kayak and Trivago, and suppliers, including hotels and airlines, 2017 travel spend on Google will likely jump 25 percent, generating close to $14 billion in revenue for Google. For context, Google revenue as a whole has grown 23 percent in constant currency during the first two quarters of the year.
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