While
Expedia dominated headlines with its more than $6 billion worth of
acquisitions in 2015, the Priceline Group needs to win the narrative
back and CEO Darren Huston made his case about his company’s competitive advantages.
“Our
capabilities and scale in partner acquisition, customer experience, and
efficient demand generation plus our large installed base of
accommodations and loyal travelers give the Priceline Group a
competitive moat that is deep and wide,” Huston said.
If
there were any doubts that Huston’s comments were at least in part an
answer to some of Expedia’s gains, including Expedia’s 39 percent fourth
quarter growth in room nights sold, although they were pumped up by
acquisitions, then consider this Huston zinger:
“Our
customers made reservations for over 432 million room nights on
Priceline Group platforms in 2015, over twice as many as our next
biggest competitor,” Huston said.
Must Read : Darren Huston Background
He
added: “We don’t take any competitor lightly, and we compete
ferociously every day, continuously seeking a higher executional gear in
every facet of our business.”
Beyond
all of the rhetoric from the Priceline and Expedia camps, we decided to
compare some of their most important fourth quarter of 2015 metrics
despite the fact that they are very different businesses. The Priceline
Group is more hotel-oriented and derives more of its revenue from
non-U.S. points of sale while Expedia Inc. offers a more well-rounded
assortment of products, including a much bigger airline-tickets
business, cruises and tours and activities.
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