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Expedia Inc.: Company Strategy & Performance Analysis

Expedia Inc.: Company Strategy & Performance Analysis

Summary

Expedia, Inc. (Expedia) is an online travel company. Through its portfolio of travel brands, the company provides major hotels, airlines, packages, rental cars, cruises and destination activities worldwide. The company offers online travel services under various brands including Expedia.com, Hotels.com, Hotwire.com, Orbitz Worldwide, Travelocity, Expedia Affiliate Network, HomeAway, Egencia, Trivago GmbH, Venere.com, Wotif Group, CarRentals.com, Expedia Local Expert, Expedia CruiseShipCenters and Classic Vacations.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading travel intermediary companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including revenue.

Key Highlights

Robust market position enabling improvements on its gross bookings

Expedia provides online travel services for business and leisure travellers worldwide. Its travel products and services provide access to over 350,000 properties and 1.2 million vacation rental services across 200 countries, 500 airlines, packages, car rentals, cruises and, destination services and activities. In 2016, the company witnessed more than 600 million monthly site visits. The company caters to over 75 countries worldwide offering 1.5 million lodging options for travellers. A robust market position coupled with continuous initiatives has enabled the company to improve its gross booking significantly over the years.

Declining operational efficiency affecting margins

The company’s higher cost structure led to the decline in operating income. The company’s operating expenses stood at US$8,324.0 million in 2016 as compared to US$5,749.9 million in 2015, indicating an increase of 44.8%. The operating costs as a percentage of sales increased from 86.2% in 2015 to 94.8% in 2016. This has affected the profitability indicators.

Technology initiatives to drive growth

The company has been continuously undertaking technology initiatives to drive growth. In February 2016, Egencia, the business travel company of Expedia, plans to launch a portfolio of expense management products for the modern business traveller. Through this product, travellers can consolidate receipts and credit card transactions directly in Egencia, and then store them in one-click into their expense system. The company uses its mobile apps to offer better services to its customers.

Scope

  • Company Snapshot - detail key indicators and rankings of Expedia Inc. in terms of revenue, net income and operating income in the company’s key markets.
  • Company SWOT Analysis - outlines Expedia Inc.’s Strengths and Weaknesses, and weighs Opportunities and Threats facing the company.
  • Growth Strategies - understand Expedia Inc.’s corporate goals and strategic initiatives and evaluate their outcomes.
  • Company Performance and Competitive Landscape - analyse the company’s performance by business segments such as operating revenue, merchant revenue, agency revenue and advertising and media revenue besides peer comparison on parameters such as revenue.
  • Key Developments - showcase Expedia Inc.’s significant recent corporate events, changes or initiatives.
  • ICT Spending Prediction - Understand how the company allocates its ICT budget across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does Expedia Inc. rank among peers in terms of revenue globally?
  • What are Expedia Inc.’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014 in terms of its segments?
  • How has Expedia Inc. performed in comparison to competitors such as TUI, Priceline Group, Thomas Cook Group and H.I.S. Co. Ltd.?
  • What are Expedia Inc.’s strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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