Booking Holdings Inc (BKNG)

History and Background

Booking Holdings Inc. was founded in 1996 as Priceline.com. It revolutionized online travel with its 'Name Your Own Price' model. Over time, it acquired other brands like Booking.com, Agoda, KAYAK, OpenTable, and Rentalcars.com, evolving into a leading global travel conglomerate.

Core Business Areas

• Online Accommodation Reservations: Booking.com is the primary driver, offering accommodations ranging from hotels to apartments. Agoda also focuses on accommodation reservations, particularly in Asia.
• Online Car Rentals: Rentalcars.com provides online car rental booking services.
• Airline Tickets: Primarily through KAYAK, offering flight search and booking.
• Restaurant Reservations: OpenTable connects diners with restaurants for reservations.
• Other Travel Services: Includes travel insurance, destination services and flight bookings.

Leadership and Structure

Glenn D. Fogel is the CEO. The company operates with a brand-centric structure, allowing each brand to maintain its identity and focus on its specific market segment.

Key Offerings

• Booking.com: A leading online accommodation booking platform with a global presence. Market share is estimated at over 10% of the total online accommodation booking market. Competitors include Expedia, Airbnb, and Hotels.com.
• Agoda: Focuses on accommodation bookings, especially in the Asia-Pacific region. It directly competes with Ctrip (Trip.com Group) and regional players.
• KAYAK: A travel metasearch engine that compares prices from various travel sites. Competitors include Google Flights, Skyscanner, and Expedia.
• OpenTable: Online restaurant-reservation service. Competitors include Resy, Yelp, and SevenRooms.
• Rentalcars.com: Leading online car rental booking service with a global reach. Competitors include Expedia, Priceline, Travelocity and Kayak.

Industry Overview

The online travel industry is competitive, with increasing consolidation. It's characterized by rapid technological advancements, changing consumer preferences, and geopolitical factors. The industry is rebounding from the COVID-19 pandemic and is expected to grow significantly over the next few years.

Positioning

Booking Holdings Inc. is a leader in the online travel market with a diverse portfolio of brands that cater to various segments. Its competitive advantages include a large scale, extensive global network, strong brand recognition, and a technologically advanced platform.

Total Addressable Market (TAM)

The global travel and tourism market is estimated to be worth trillions of dollars, with the online travel booking segment accounting for a significant portion. Booking Holdings Inc. is well-positioned to capture a substantial share of this TAM.

Key Competitors

• EXPE
• ABNB
• TRIP

Competitive Landscape

Booking Holdings has a broader range of properties with long-standing relationships and better tech than Airbnb and the Expedia group. However, it has less focus on experience-oriented packages than competitors like ABNB.

Getaroom

• Year: 2021
• Acquisition Price (USD millions): 1200
• Strategic Rationale: Expanding access to North American market and strengthening business partnerships.

Historical Growth: Booking Holdings has experienced significant growth over the past decades, fueled by acquisitions, organic growth, and expansion into new markets.

Future Projections: Analysts generally project continued growth in revenue and earnings, driven by the recovery of the travel industry and the company's strategic initiatives.

Recent Initiatives: Expanding into alternative accommodations, investing in technology, and enhancing customer experience.

Booking Holdings Inc. is a robust player in the online travel industry, leveraging a diverse brand portfolio and expansive global network. Its strengths lie in technological advancement and market presence, yet it faces challenges from competition, economic shifts, and dependence on online advertising. Future growth relies on capitalizing on market opportunities and managing evolving consumer preferences. Strong cash flow and brand equity support its position despite current challenges.

Data Sources:

• Company SEC Filings
• Industry Reports
• Analyst Estimates

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual due diligence.