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Booking vs expedia

Date post: 14-Aug-2015
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Established in the year 1996 Headquarters – Amsterdam Founder - Kees Koolen MBA from university of twente Started a consultancy firm in 1988 Invested in 50 tech companies till 1998 Co founder - Arthur Kosten
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Page 1: Booking vs expedia

• Established in the year 1996

• Headquarters – Amsterdam

• Founder - Kees Koolen MBA from university of twente Started a consultancy firm in 1988 Invested in 50 tech companies till

1998

• Co founder - Arthur Kosten

Page 2: Booking vs expedia

• Australia's biggest online travel agent.• Books over 7,50,000 rooms for each night• Provides services in more than 40 languages• Have 150 offices in more than 60 countries• Around 8300 employees

Page 3: Booking vs expedia

• Established its subsidiary under the name

during the period.• In the year 2002, Gillian Tans  joined as President

and Chief Operating Officer Responsible for managing the day-to-day operations of the

business Previously worked for many hotel groups like

Intercontinental Hotel Group and International Golden Tulip hotel group

Operations and sales went across more than 193 countries under her work.

Page 4: Booking vs expedia

• 2003 - Stef Norden appointed as CEO.• 2005 - Booking.com was acquired by US based

Deal of $133 millions More than two-thirds of total revenue of Priceline was

generated by Booking.com. Priceline in 2002 - $19 millions loss

in 2011 - $1.1 billions profit

• 2006 - Acquired and changed its name to booking.com.

Sold around 10 million rooms on per night basis

Page 5: Booking vs expedia

• 2011- Darren R. Huston appointed as the CEO.Holds MBA from Harvard Business School.Previously worked in many well reputed companies like

Microsoft and StarbucksExtremely familiar with the online marketing landscape

and the strategies

• 2011-14 - Kees Koolen appointed as Chairman

• 2012 - partnered with the OTA.

Ctrip could reach its 235,000 hotels through Ctrip’s hotel reservation services.

Page 6: Booking vs expedia

• 2013 - and Booking.com launched

Deal of $2 million Provides book-now-pay-later service.

• 2014 - signed an agreement.

Provides services of local mobile search and messaging solutions to consumers and businesses

Deal is to integrate Booking.com's extensive hotel data(500,000 hotels) into Sprylogics' Poynt App.

Poynt users are now able to access over 28 million guest reviews

Some of the features- last minute, secret and value deals, details of amenities, etc

Page 7: Booking vs expedia

• 2014 - partnered with Booking.com

One of the top five major Russian airlines.15% of the price of hotel bookings made on

booking.com credited to the bonus accounts of participants.

Page 8: Booking vs expedia

• Since 2009 - mobile apps are used.

Initially it was an iPhone app.

• In 2010 - iPad version was launched.

• In 2011 Android and Windows 8

versions were launched.Booking.com's customers

completed more than $1 billion transactions on mobile devices

In 2012 - $3 billion

In 2013 - $8 billion

• 2012 – Last minute hotel booking

app was launched.Offers special savings up to 50%

Page 9: Booking vs expedia

• 2012 - Company launched “Passbook”, an iPhone app

extended feature. Allows users to easily access their

hotel and accommodation bookings, along with entry tickets, boarding passes, etc in one place.

Passbook is both time and location aware

Confirmations and tickets show up on the customers’ iPhone Lock Screen

with just a swipe whenever needed.

Page 10: Booking vs expedia

• No celebrity is casted yet for the promotion.• 2013- First brand campaign “booking.yeah”

Designed for US market. Advertising agency Wieden + Kennedy 60 second film Campaign was launched online, movie theatres and on

TV networks. Focus of campaign – to point that moment of joy,

when you realize just how great your accommodation is, and how amazing your trip is going to be.

PROMOTIONAL CAMPAIGN

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• Failed to keep the promise of safe transaction, “pay when you stay model”.

Fake mails were received by the customers to pay for the accommodation in advance

Later the company compensated for the loss which occurred to the customers.

• Booking.com and Expedia entered into agreements with IHG to control their pricing.

Infringed competition law

CONTROVERSIES

Page 12: Booking vs expedia

• Founded in 1996 as Microsoft part

• Headquarter - Bellevue, WA

• Founder - Rich Barton Previously worked as GM

in Microsoft. Engineering graduate

from Stanford University. CEO of Expedia from the

year 1999-2004

Page 13: Booking vs expedia

• 1999 - 7 million registered users Also recorded $700 million in gross bookings in airline,

hotel and car-rental reservations.

• 1999 - Microsoft planned to sell stock of Expedia

to public.Expedia became a separate company.Yet it had a contractual relationship with Microsoft to

provide travel services on the msn.com Web site.

• 2000 – Acquired

The leading branded Internet hotel consolidator, Washington

Discounted rate contracts at over 1,200 hotels in 240 cities worldwide

Page 14: Booking vs expedia

• Also acquired Leading reservation network for vacation homesOffered over 25,000 unique properties in more than

4,000 vacation destinations and more than 100 countries worldwide .

• The acquisition positioned Expedia as the leader in Internet lodging

65,000 lodging properties worldwide240 citiesApproximately 2 million room nights per year

Page 15: Booking vs expedia

• 2002 – The company launched Expedia corporate travel

Aim was to provide travelers and travel managers with more choices and control

Reducing the costs associated with managing business travel.

• 2004 – acquired Expedia

IAC’s CFO, Dara Khosrowshah became the CEO of Expedia

Previously, he served Allen & Company LLC as a Vice President.

Recently, in 2013, awarded as the Entrepreneur Of The Year 2013.

Page 16: Booking vs expedia

• 2007 – Expedia partnered withExpedia broadened its exposure to offline distribution

channelsGot reach to Cruise Ship Centers' 100 retail franchise

locations and more than 1,500 independent cruise consultants .

• 2008 – Expedia announced its agreement with Italy-based

Venere.com had relationships with approximately 29,000 hotels .

Acquisition resulted in the addition of more than 10,000 incremental hotel properties in Europe, the Middle East and Africa to Expedia

Page 17: Booking vs expedia

• 2008 - Expedia Affiliate Network (EAN) was formed

Creates the tools and technology that helps millions of travelers find the perfect hotels for their next trips.

World's fastest-growing private label travel affiliate network

• Expedia Corporate Travel changed to

• The company acquired

Premier online car rental marketing and retail firm offering a diverse selection of car rentals

CarRentals.com continues to operate in its current form and reported as a business unit directly into Expedia

Page 18: Booking vs expedia

• 2009 – Expedia did changes to its service policiesEliminating change feesCancel fees on all hotel, car rental and cruise

reservationsNo longer charges online air booking fees

• Expedia announced the introduction of the Expedia Easy Manage program.

A commission-based partnership option for qualifying hotels in the Europe, Middle East and Africa region.

The eligible hotels can quickly and easily sign up to offer their property on more than 70 Expedia and Hotels.com® sites.

No registration fees and no fixed costs.

Page 19: Booking vs expedia

• 2010 - Expedia became largest travel OTA .

• Expedia partnered with 25,000 hotels participating in Hotwire now offers their

inventory on Expedia.com.

• It also acquired Mobiata, creator of the best selling mobile applications Accelerated the company's ability to enable mobile

travel shopping and booking across multiple platforms.

Page 20: Booking vs expedia

• 2011 – Expedia invested inA leading online travel service provider in China.Expedia acquired approximately 8% of the

outstanding shares for $41.2 million.

• Expedia announced the launch of a new joint venture company named

World's best low cost airline during the time. Offers a complete range of great value flights, hotels,

and holiday packages

• 2012 - Expedia announced Expedia traveler preference.

It is a new payment model.

Page 21: Booking vs expedia

• 2013 - Expedia announced acquisition of 61.6% of the fully-diluted equity of

A leading hotel metasearch company. Deal was for €434 million in cash. Trivago continues to operate independently from its

headquarters in Dusseldorf, Germany

• Expedia also announced long term strategic marketing agreement with

Provided travelocity access to Expedia’s supply and customer services.

Travelocity focused its efforts on promoting its brand and marketing its broad offerings.

Page 22: Booking vs expedia

• 2014 – Expedia acquiredOne of Europe's leading online car rental reservation

companies Further, Auto Escape Group became a part of the

CarRentals.com brand

• Expedia acquired for $703 millionAllowed Expedia to continue expanding the business in

the Asia-Pacific region.Allowed Wotif Group's customers and partners to get

benefit from Expedia’s global portfolio

• Expedia also acquired for $1.6 billion. Allowed Expedia to deliver best-in-class experiences

to an even wider set of travelers all over the world.

Page 23: Booking vs expedia

Major established brands with global reach : Expedia – 31 sites in 31 countries. Hotels.com – 89 sites in 68 countries. Trivago – Presence in 49 countries Egencia – presence in 64 countries

Product wise revenue is as shown below : Car & cruise- 14% Ad & media-8% Air – 8% Hotels – 70%

Page 24: Booking vs expedia

• Currently Expedia serves 435,000 hotels .• Present in 200+ countries • 15,000 employees

Page 25: Booking vs expedia

Offers services in airlines, hotels, cars, buses

435,000 properties

200+ countries

Charges higher commission

Acquired by IAC

Offers only

accommodation.

 608,315 properties

200+ countries

Charges lesser commission

Acquired by Priceline

COMPARITIVE ANALYSIS

Page 26: Booking vs expedia

Mobile app is used by lesser customer base

Offers service in 35 languages

No Free cancellation policy.

Mobile app is used by more customer base.

Offers service in 42 languages

Free cancellation policy.

COMPARATIVE ANALYSIS

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1. The prominent hotel star rating with thumbs up

2. Short but enticing introduction to each hotel

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3. A short summary of how other customers have rated the hotel

4. The number of reviews each hotel has received

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5. Shows when the hotel was last booked

6. How many people are looking at this hotel

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7. How many hotels found and the availability

8. This hotel is likely to sell out soon

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9. ‘Just booked’ icon next to individual room types

10. Was and now price

Page 33: Booking vs expedia

THANK YOU


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