In 2004, The Priceline Group acquired European hotel booking website Booking.com, helping to catapult Priceline from a profit of $10 million in 2003 to a profit of $1.1 billion last year.No other acquisition in the digital travel space in the 2000s has proven as profitable. Priceline bought Booking.com for a mere $135 million in cash.
The parent company folded an earlier purchase, ActiveHotels.com, into the Booking.com’s subsidiary. Together, their agreements with hotels jumped from 10,000 to more than 100,000. Since then, sales have soared. PCLN’s overseas revenues grew at a compound annual growth rate of 68% between 2006 and 2010, compared with a 15% rate for domestic US revenue.
Gross bookings from international markets as a percentage of total bookings have spiked from 55% in 2007 to around 78% last year. According to Priceline’s 10-K, international operations accounted for four-fifths of consolidated operating income. Booking.com is also the king of Google AdWords, as Tnooz has noted before. Read More
By Sean O’Neill, Published in : http://www.tnooz.com