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According to Forbes, hotels represent 97% of Priceline's revenue with 23% margins. Car rentals and cruises represented 9% margins and airlines at 3% margins.
by jhulla 12y ago
According to Forbes, hotels represent 97% of Priceline's revenue with 23% margins. Car rentals and cruises represented 9% margins and airlines at 3% margins.
Assuming Expedia and Orbitz have similar profiles, then this is really a market share fight to capture the largest pool of hotel transactions.
http://www.forbes.com/sites/greatspeculations/2013/01/10/breaking-down-pricelines-business-and-stock-drivers/ http://www.forbes.com/sites/greatspeculations/2013/01/10/bre...
- kelukelugames 12y agoYes, the SO works for one of them. The employee discount can go up to 50% for hotels and pretty much nothing on flights.
- jessriedel 12y agoDoes anyone know why there's such a huge disparity in these different types? I'd think the revenue would start getting driven down toward the value added, and I can't imagine the value added by a website varies so much between plane tickets, car rentals, and hotel booking.
- brianpgordon 12y agoAirlines are already operating on such razor-thin margins that it's not surprising that Priceline can't extract much profit from those deals.