Booking Holdings Inc (BKNG)

History and Background

Booking Holdings Inc. was founded in 1996 as Priceline.com. Initially focused on 'name your own price' for airline tickets, it expanded into hotels and other travel services. Through strategic acquisitions and organic growth, it evolved into a global leader in online travel.

Core Business Areas

• Booking.com: Offers online accommodation reservations, including hotels, apartments, and other unique stays.
• Priceline: Provides deals on hotels, flights, and rental cars, often using a 'name your own price' model.
• Kayak: A meta-search engine that compares prices from various travel websites to find the best deals on flights, hotels, and rental cars.
• Agoda: Focuses on accommodation bookings in Asia, offering a wide range of options from budget hotels to luxury resorts.
• OpenTable: Offers online restaurant reservations and related services.
• Rentalcars.com: Offers online booking on rental cars.

Leadership and Structure

Glenn D. Fogel is the CEO. The company has a hierarchical structure with various departments overseeing different brands and functions.

Key Offerings

• Booking.com: Global leader in online accommodation bookings. Market share is significant, estimated at around 15-20% globally in accommodation. Competitors include Expedia, Airbnb, and Trip.com Group. Generated significant revenue, details available in earnings reports.
• Priceline: Known for its 'name your own price' feature, offering discounted travel deals. Competitors include Hotwire (Expedia) and other deal-focused travel sites. Specific market share data is less readily available as it is integrated within the broader Booking Holdings portfolio. Generates solid revenues through value deals, details available in earnings reports.
• Kayak: A leading meta-search engine. Competitors include Google Flights, Skyscanner, and Momondo. Its market share is smaller compared to Booking.com, but it provides significant referral traffic within the group. It generates significant revenues, details available in earnings reports.
• Agoda: A very strong brand for Asian accomodations. Competitors include Trip.com and other Asian focused platforms. Its market share is high within Asia, a key growth market for the company.
• OpenTable: Largest online reservation system for restaurants in the US with thousands of restaurant partners. Competitors include Resy and Tock. Booking Holdings has been able to integrate dining bookings with hotels and accomodations.

Industry Overview

The online travel industry is highly competitive and dynamic, with continuous technological advancements and shifting consumer preferences. The industry experienced a sharp downturn due to the COVID-19 pandemic but is recovering steadily, driven by pent-up demand and increased vaccination rates.

Positioning

Booking Holdings is a dominant player in the online travel industry, leveraging its global brand recognition, diverse portfolio of services, and extensive network of accommodations and travel partners. Its competitive advantages include its scale, brand loyalty, and data-driven approach to marketing and pricing.

Total Addressable Market (TAM)

The global online travel booking market is estimated to be worth hundreds of billions of dollars annually. Booking Holdings is well-positioned to capture a significant share of this TAM due to its strong market position and diverse service offerings.

Key Competitors

• EXPE
• ABNB
• TRIP

Competitive Landscape

Booking Holdings possesses advantages in brand recognition and scale, while competitors may focus on niche markets or alternative business models. Airbnb focuses on unique accommodations, and Expedia has a broad portfolio of brands. Trip.com group has a strong foot hold in the Asian region.

Getaroom

• Year: 2021
• Acquisition Price (USD millions): 1200
• Strategic Rationale: To expand Booking Holdings' presence in the North American market and increase its hotel offerings.

Historical Growth: Booking Holdings has experienced significant growth through organic expansion and strategic acquisitions.

Future Projections: Analysts project continued growth for Booking Holdings, driven by the recovery in travel demand and the company's expansion into new markets and service offerings. Details are available from analyst reports.

Recent Initiatives: Recent initiatives include investments in technology, expansion into new markets, and strategic partnerships with other travel companies.

Booking Holdings is a strong company that is a global leader in online travel. Its brand recognition, diverse services, and extensive network create competitive advantages. It must watch out for economic downturns, increasing competition and data privacy regulations. The company's growth strategy focuses on expanding into new markets and developing new services.

Data Sources:

• Company SEC Filings (10-K, 10-Q)
• Analyst Reports (e.g., from major investment banks)
• Industry Reports (e.g., from Statista, IBISWorld)
• Company Press Releases
• Earnings Transcripts

Disclaimers:

The data and analysis provided are based on available information and are subject to change. This is not financial advice, and investment decisions should be based on individual due diligence.