Here are some sample widgets you could interact with from this dashboard:
A Quick Look At Their Business Model:
(which operates Booking.com
, Kayak, Priceline, OpenTable, Agoda,
and Expedia Group
(which operated Expedia, Hotels.com, Hotwire, trivago
are the largest online travel agencies (OTAs) in the world and operate through a dynamic portfolio of brands across different regions. Despite the differences in product offerings and services rendered, their operational business model is nearly identical.In this dashboard we compare the two companies on the basis of their business model and key operational parameters. Both the companies recognize revenues from 3 prominent sources which are described as below:Agency Revenues:
These are commissions received for travel-related transactions where the customer is sent to the airline, hotel or another provider's website to complete the reservation. In this case, the company does not receive booking payments from the customer, however, the destination website pays a commissionMerchant Revenues:
These are commissions received for travel-related transactions where the company receives booking payments directly from the customer.Advertising Revenues:
These are revenues earned from referrals, advertising placements, and subscription fees.
Comparison Of Total Revenues: Booking Holdings' model is focused on Agency Business, vs Expedia's on Merchant
Booking Holdings reported ~30% higher revenues compared to Expedia in 2018
Booking Holdings Total Revenues
Expedia Total Revenues
Booking Holdings and
Expedia Group reported total revenues of $14.5 billion and $11.2 billion
in 2018, respectively.
Moreover, both the company’s revenues have grown at a similar CAGR of 19% since 2016. (Considering the new revenue policy for Booking Holdings
Booking Holdings Valuation: Expensive Or Cheap?Expedia Group Valuation: Expensive Or Cheap?Expedia Group Earnings: Performance and 2019 ForecastBooking Holdings Earnings: Performance and 2019 Forecast
Comparison Of Merchant Revenues
On the other hand, Expedia appears to focus predominantly on Merchant Bookings
Merchant Revenues: BKNG (Solid Line) vs. EXPE (Dotted Line)
Merchant Bookings: BKNG (Solid Line) vs. EXPE (Dotted Line)
In 2018, Expedia Group and Booking Holdings’ Merchant revenues had a contribution of 53% and 20% of total revenues, respectively.In 2018, Booking Holdings and Expedia Group reported $3 billion and $6 billion of Merchant revenues, respectively.Expedia reports significantly higher merchant bookings ($41.4 billion in 2018 vs $18.8 billion for Booking Holdings)
Comparison Of Advertising Revenues
Advertising Revenues for both companies are comparable
Advertising Revenues: BKNG (Solid Line) vs. EXPE (Dotted Line)
Both the companies received nearly similar advertising revenues of $1 billion in 2018.
Notably, Expedia reports revenues from its alternative accommodations division (HomeAway) separately from its Merchant and Agency Revenues.
Comparison Of Key Operational Metrics
The differing focus for each company is evident from the fact that Booking Holdings' Total Gross Bookings have consistently been lower than Expedia's, even though it books nearly double the number of Room Nights than the latter
Total Gross Bookings: BKNG (Solid Line) vs. EXPE (Dotted Line)
Gross Bookings represent the total dollar value of transactions through agency and merchant bookings, which includes air tickets and other categories.
Expedia Group’s Gross bookings have been 10% higher than Booking Holdings in the last two years.
Room bookings remain the key service category for Booking Holdings and Expedia Group as compared to other services such as air tickets and rental cars.
In 2018, Booking Holdings and Expedia Group reported room nights of 760 million and 350 million, respectively.
Room Nights: BKNG (Solid Line) vs. EXPE (Dotted Line)
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.