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HN might also be aware of the market caps of the airlines Priceline books for: Delta: 34.4B Southwest: 30.2B American: 22.1B United: 18.7B Are we incorrect
by sliverstorm 9y ago
HN might also be aware of the market caps of the airlines Priceline books for:
Delta: 34.4B
Southwest: 30.2B
American: 22.1B
United: 18.7B
Are we incorrectly discounting marketing, brand, etc when we notice that the top booking service is valued triple the top actual provider? That the value they add might not actually be triple the value of the actual flight?
- inthewoods 9y agoFlights are only part of the picture - hotels, car rentals, et al. Anything, basically, to do with travel.
- acchow 9y agoMargins on flights are slim. Hotel bookings are the real meat.
- hn_throwaway_99 9y agoThis is a common misconception based on Priceline's history. The vast, vast majority of Priceline's value is Booking.com, which does hotel bookings. The margins on flight bookings are razor thin and probably only add value by enabling travelers to add hotels to their flights.