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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