Why Priceline’s purchase of Booking.com was the most profitable travel deal of the 2000s


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

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About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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