The Priceline Group (PCLN: US)

The Priceline Group (PCLN: US)
Executive Summary: As the world’s leading online travel agency (OTA), The Priceline Group offers a
portfolio of businesses that will benefit from long-term growth in global online travel spending. The
market's overemphasis on recent currency headwinds has created an attractive entry point to acquire
PCLN shares below intrinsic value.
Key Figures (as of September 8, 2015)
Share Price:
Market Cap:
Fair Value Estimate:
$1,280/share
$66.6 billion
$1,660/share
We believe PCLN can provide mid-teens annualized returns over 3-5 years for the following reasons:
1) As the largest global OTA with leading market positions in Europe and Asia, Priceline’s competitive
advantage derives from its two-sided network connecting hotels (767,000 properties) and
travelers (80 million monthly unique visitors to their websites). This base of suppliers and
customers cannot be replicated by competitors without significant cost, effort and time. We
believe PCLN will maintain its #1 market position despite competition and new entrants emerging
in the next few years.
2) With its increasing breadth of online travel offerings and related services, PCLN is poised to take
incremental market share from global competitors. In addition to offering flights, hotels, and
rental cars, a traveler can visit OpenTable for restaurant reservations or Kayak to search across
the internet for the best deals. Furthermore, PCLN is undertaking initiatives to offer back-office
operational services, such as revenue management and website construction, to further
strengthen its relationship with independent hotels. We expect these forward-thinking initiatives
to bolster Priceline’s network effects and fuel bookings growth.
3) Priceline is well-positioned to take advantage of multiple secular growth opportunities. The global
travel industry is expected to grow 1-2% faster than GDP. Because of the structural convenience
and efficiency offered by online and mobile reservations, online travel adoption rates should
increase over time, resulting in double digit growth rates. Much of the growth will come from
international markets such as Asia and Latin America, where online travel penetration is lower
than in developed markets, and where PCLN has strong market presence.
4) PCLN’s senior management team has proven itself to be skillful at allocating capital and creating
shareholder value. We expect management to continue making prudent decisions on capital
allocation and strategic acquisitions.
5) At 24 times 2015 earnings and 20 times 2016 earnings (excluding net cash), PCLN shares are
trading at attractive multiples compared to peers. We estimate the intrinsic value of PCLN to be
$1,660 per share, or 30% higher than current stock price, which gives investors an opportunity to
invest in a high-growth company priced below intrinsic value with a reasonable margin of safety.
Disclaimer: This report has been distributed for information purposes only. As of the publication date of this report, Deerwood Capital, LLC
(“Deerwood”), has long positions in and may own option interests on the stock of the Company covered herein (The Priceline Group), and
stand to realize gains in the event that the price of the stock increases. Please read our full legal disclaimer at the end of this report.
Risks
Currency volatility
Further depreciation of the Euro against the U.S. dollar will negatively impact Priceline’s future financial
results.
Macroeconomic concerns
A global economic downturn may cause a slowdown in travel spending and hotel Average Daily Rates,
which negatively impacts PCLN revenues. Mitigating factors include expected faster-than-GDP growth of
the travel industry, secular growth prospects brought by higher worldwide internet and online travel
penetration, and PCLN’s dominance in Europe, which hosts 7 out 10 of the world’s most visited countries.
Supplier bargaining power
Large hotel chains and airlines have significant negotiating power and are continually trying to avoid
paying commissions to OTAs. The four largest airlines in the U.S. now control 81% of domestic Available
Seat Miles and have been successful in directing a growing proportion of bookings to their own
“brand.com”. Hilton, Hyatt and Marriott had a failed attempt to start up their own OTA, “RoomKey.com”.
OTAs are likely to suffer margin pressures if the airline and hotel industry further consolidates. However,
PCLN will be the least impacted among global OTA peers because of its core exposure to the highly
fragmented hotel markets in Europe and Asia.
Threat from metasearch competitors
Metasearch sites such as TripAdvisor and Google generate advertising revenue by referring the traffic and
bookings to OTA sites like Booking.com and Expedia (EXPE). Recently, it seems they are experimenting
with offering OTA-like services on their own sites by encouraging customers to make direct bookings and
attempting to capture a larger share of the commissions. We don’t see TripAdvisor and Google taking
meaningful market share away from PCLN and address this issue later in this report.
Sharing economy alternatives
Airbnb and HomeAway appeal to price-conscious customers, who are increasingly using sharing economy
services instead of booking a traditional hotel. If the booking and stay process for those sites becomes as
convenient as using an OTA (with instant booking, confirmation, and easy check-in), then Priceline’s
prospects would be negatively impacted in the future.
2
Company Background
The Priceline Group is actually much more than just Priceline.com. As the largest global provider of online
travel services, PCLN offers the broadest product offerings compared to its peers and smaller vertical
players in the industry, as shown in the chart below.
Priceline
Service
Priceline
Group
Expedia
Orbitz
Worldwide
Flights
Priceline.com



Hotels
Booking.com
Priceline.com



Homestay/Apartments
Booking.com

Vacation Rentals
Booking.com
Villas.com


Rentalcars.com


Kayak


OpenTable

BookingSuite
PriceMatch

Online Travel Services
Cars
Metasearch
Restaurant Reservations
Hotel Back-office Services
TripAdvisor
Google
Airbnb
HomeAway










Source: Company filings
Since the early 2000s, the current Chairman of the Board and former CEO Jeffery Boyd has led Priceline
through the successful acquisitions of Booking.com, Agoda, and Rentalcars.com, which have created
enormous amounts of shareholder value. Most notably, the ActiveHotels/Booking.com acquisitions in
2004/2005 for a total of $300 million have generated tens of billions of market cap for PCLN shareholders
and were the most profitable acquisitions in the online travel space in recent decades.
Skillful execution of the core business has also contributed to this phenomenal value creation. Under
leadership of Jeffery Boyd and the current CEO Darren Huston, PCLN gross travel bookings grew from $2.2
billion in 2005, to $50 billion in 2014, generating a compound annualized growth rate of 41%, compared
to 14% annualized growth rate achieved by Expedia in the same period.
Management has been mindful of returning cash to shareholders by implementing stock repurchase
programs over the last decade. The most recent program, announced in February 2015, was an
authorization to repurchase up to $3 billion common stock. PCLN has since spent about $1 billion buying
back shares in the $1,100-$1,250 per share range, which we consider to be well below intrinsic value.
With ownership of $760 million convertible debt and $535 million equity of Ctrip, PCLN effectively owns
15% of Ctrip. Ctrip is the largest OTA in China and is experiencing rapid growth fueled by strong demand
from Chinese travelers. We have a positive view on the commercial relationship and the strategic
agreement to cross-promote hotel inventory and travel services between the two companies.
3
Competitive Position and Industry Landscape
We believe PCLN benefits from the following competitive advantages:
Network effects
Priceline’s network effects are strongest in its accommodation offerings. From travelers’ perspectives,
they are more likely to book accommodations on a site that offers the most choices of property listings
and property types for their desired destinations.
Priceline Group
Expedia
Orbitz Worldwide
2015 Bookable
Properties
767,000
510,000
110,000
2014 Monthly
Unique Visitors
80 million
63 million
10 million
Source: Company filings, Morningstar
As seen from the comparison above, Priceline enjoys the largest website traffic among OTA peers,
presumably because of its widest coverage of bookable properties. As a result, PCLN possesses the
highest value proposition when it tries to initiate new relationships with hotel suppliers – hotels need to
distribute through PCLN websites to get exposure to the largest global travel audience.
Source: Credit Suisse Priceline Report, “Demand Resilient as Supply Continues to Grow”, August 2015
We view PCLN’s network difficult to replicate and expect it to strengthen over time as the virtuous circle
reinforces itself – more suppliers joining the network generates more customer bookings, which causes
even more suppliers to join the network.
4
Source: Phocuswright
PCLN and EXPE have been outperforming the rest of OTA peers in recent years. Their market position and
solid profitability provide the capital to invest in inventory expansion, technological innovation and
marketing. We expect the two largest players to strengthen their network effects and continue gaining
market share.
Strategic focus on fragmented hotel markets
Priceline’s international focus on accommodations is a key competitive advantage in fragmented markets.
OTAs, being crucial intermediaries linking supply and demand, are the most efficient way for hotels to
market and distribute inventory to travelers searching across a wide range of geographies, characteristics,
and price points.
Source: UBS, PhoCusWright
5
Source: UBS, PhoCusWright
In Europe, 60% of hotels are independent vs. 30% in the US where large hotel chains dominate. Travelers
depend on PCLN to find, vet, and book the perfect experience in a place they have never been to at a
hotel they have never heard of before. This is why the OTAs take the lion’s share of the online hotel
bookings in Europe.
TripAdvisor Instant Booking and Google Hotel Finder will have limited impact on PCLN
Competition is fierce in the online travel markets. Other than the existing OTAs, there are many
companies that have the user base, traffic and resources to get into the OTA business, such as TripAdvisor
(as a metasearch and review site) and Google (as a search site). However, we remain skeptical that either
company can take meaningful market share away from Priceline.
TripAdvisor has rolled out a new feature “Instant Booking” that allows consumers to complete a hotel
booking directly on its website instead of being redirected to third-party OTA sites. The reservations are
then fulfilled through the OTAs or hotels themselves, who will then service the reservations by confirming
with customers, answering questions, making changes, etc. Since its introduction in 2014, Instant Booking
has signed up more than 60 large hotel chains and smaller OTAs. It has become the most debated topic
within the online travel industry and is often perceived as the biggest threat to PCLN and EXPE.
From the large hotel chains’ perspective, they have the resources to build the “brand.com” direct
reservation system and service these reservations. The hotels always prefer customers to book through
their own direct channel without paying commissions to OTAs. OTAs and metasearch sites only add value
if they can bring incremental bookings hotels could not access otherwise. This phenomenon is comparable
to the Airline industry where the balance of power is in favor of the suppliers over OTAs, as seen by the
lower margins of OTAs in Air. Therefore, these chain hoteliers have more negotiating power and prefer
OTAs and metasearch sites that bring in the most bookings with the lowest take rates. Generally PCLN has
offered commission rates at mid-teens range, which compare favorably to EXPE and smaller competitors.
TripAdvisor as a new entrant prices its Instant Booking product at even lower rates than PCLN.
6
“Based on our industry conversations, we believe that both Best Western and Choice Hotels (the earliest of adopters)
may have agreed to a commission structure as low as 6-10%, albeit likely for a limited time period only. And, we
know that independents are being offered 12% and 15% commission options. At these levels, TripAdvisor's Instant
Booking commissions significantly undercut the established OTA channel (which ranges from 10% - 25% in its
commissions).”
Source: UBS Global Research, “Framing the Instant Booking Debate”, March 2015
Because of Instant Booking’s much lower commission rates, TripAdvisor is likely to take some market
share in the brand name hotel segment if the OTAs don’t match its aggressive pricing. The pricing for the
independents segment, however, does not seem to be significantly different from prevailing levels offered
by PCLN.
For independent hotels, OTAs play important roles as key marketing and distribution partners, as well as
back-office outsourcing. For these smaller hotels that cannot gain scale to develop a worldwide brand or
an effective booking website, they typically have limited budgets and human resources allocated to
marketing, technological infrastructure, and staff dedicated to managing third-party relationships.
Partnering with large OTAs such as PCLN is an excellent investment to boost occupancy, build their online
marketing presence, and burnish their brand with positive customer reviews. As a result, we see the
leading OTAs gaining share in this segment of the online accommodation market over time.
.
Source: Morgan Stanley, February 2015
Over half of Priceline’s gross booking revenue comes from Europe, where it has 61% share of the total
European online leisure market (vs. 19% for Expedia). From our conversations with independent hotels,
we learned that they would be open to sign up with new OTAs to diversify their sources of revenue.
However, in our view, it would be a much slower process, possibly a multi-year period, for TripAdvisor to
build working relationships with hundreds of thousands of these smaller hotels than it would take to onboard the few large international chains. The pricing difference between Instant Booking and PCLN does
not appear to be significant, and TripAdvisor would only prove its value to independent hotel partners if
Instant Booking generates meaningful gains in total bookings.
7
Instant Booking may become a disruptive force in the OTA industry, but we remain skeptical it would take
significant market share from PCLN, which consistently fills hotels’ occupancy expectations. Considering
TripAdvisor’s lack of customer service staff (total of 3,000 employees vs. 16,000 for PCLN and 18,000 for
EXPE), we are also skeptical on how consumers will embrace this new online travel agent in an industry
where superior customer service requires high levels of labor intensity. In addition, we have a positive
view of Priceline’s BookingSuite and other back-office product initiatives as they strengthen PCLN’s
relationship with independent hotel partners, as well as provide outsourced services and incremental
bookings.
It’s also important to note that TripAdvisor is still an online advertising company at its core. Click-based
advertising makes up 70% of TripAdvisor’s total revenue as it directs traffic to its OTA partners and travel
service providers. We don’t see EXPE and PCLN signing up with Instant Booking because the large OTAs do
not want to help TripAdvisor take over the customer relationship. EXPE and PCLN have every incentive to
encourage customers make their own sites the starting point of travel planning to cultivate brand loyalty.
The OTAs have invested huge amount of resources into attracting and servicing the customers in order to
create the best brand experience. Direct interaction in the entire travel process is crucial in managing
these customer relationships. TripAdvisor will have to think very carefully before ultimately deciding to
compete as a full-on OTA and potentially losing EXPE and PCLN as ad-paying clients, which together
account for 46% of TripAdvisor’s total revenue.
Through Hotel Finder and Flight Search, Google runs a similar metasearch model to TripAdvisor that
generates cost-per-click advertising revenue from OTAs and travel providers. We do not expect Google
moving down the funnel to become a serious competitor in the OTA space where it lacks operational
expertise. In general, businesses are rewarded for reaching scale at a specific specialization. Google’s core
specialization is helping internet users organize and access information and charging advertisers who are
interested in reaching this large user base. Even if Google introduces a direct booking product similar to
Instant Booking, it is still unlikely to take away meaningful market share from large OTAs. In addition, the
costs associated with being a large OTA make it difficult to reach profitability without gathering a critical
mass of listings from hotels and bookings from visitors.
8
Travel Industry Trends Fuel Growth
Priceline, the leading online travel agency (OTA), will benefit from multiple tailwinds behind the global
online travel industry over the next 10 years.
Source: Phocuswright Latin American Rising Travel Market Update, April 2015
Global travel is a $1.3 trillion per year market. From 2011-2015, global travel spend (both offline and
online) grew 4.3% per year and global online travel spend grew at 10% per year. According to the World
Travel & Tourism Council, total travel and tourism spending is expected to grow on average by 3.8% per
year from 2015-2025, outpacing projected global GDP growth and most other sectors.
Source: PhoCusWright
9
Source: Morningstar
The outperformance of online travel over the overall travel market is due to increasingly higher levels of
online travel penetration, which stands at little less than 40% in 2015. Online travel penetration is
expected to surpass over 50% over the next decade as travelers increasingly realize the convenience and
efficiency of online booking. Travel providers will correspondingly rely more heavily on online channels for
distribution.
Source: Phocuswright Latin American Rising Travel Market Update, April 2015
Online travel spend share of total travel spend is less than 25% in APAC, Eastern Europe, the Middle East,
and Latin America compared to over 40% in the US and Europe. As result of faster growth in per capita
10
income and internet usage, online travel growth in the emerging markets will be much greater than the
global average. Because 86% of its gross bookings are international, Priceline is well-positioned to capture
the rapid growth of non-US markets, including China, through its strategic partnership with Ctrip, the
leading Chinese OTA.
Shift from PC to Mobile benefits OTAs
The demographic and behavioral trends around mobile-centric and last-minute booking further bolster
competitive advantages of OTAs. Led by the Millennial generation, travelers are increasingly performing
online travel research across multiple screens, booking much closer to the travel date (even same-day
booking), and comparing prices on different sites.
As a result of these changes, having a single comprehensive mobile app with an incredible user experience
from search to book to post-stay is critical to capturing the market. For travelers planning trips with
flexible itineraries, it is extremely inefficient to use dozens of separate hotel chain apps to book and
organize stays across multiple properties.
Source: Phocuswright, “The Mobile Effect: Disrupting the Competitive Landscape in the Digital Travel Market”, May 2015
OTAs own the mobile hotel space because having a single app that can access a comprehensive set of
inventory is the easiest way to search, book, and organize a multi-leg travel itinerary. This benefit is even
more pronounced for last-minute bookers and in markets with a higher percentage of independent hotels,
like Europe.
Priceline is winning and retaining its share of mobile bookings, which bodes well for future market share
gains. In 2015 2Q, 33% of PCLN’s bookings occurred on a mobile device, compared to 10% in 2012.
Not only is Priceline going to benefit from being the leading online travel agency in a market growing at
over 10% per year, but operational leverage is very high if it can capture a larger share of the $700B+
global hotel market. Because PCLN's IT infrastructure costs are relatively fixed, the bulk of incremental
revenue (after advertising expense of 46% of revenue) falls directly to the bottom line as profit.
11
Valuation and Financial Projection
Operating Statistics
Market Cap
Projected Projected
Net Income
Revenue Net Income
Dec-15
Dec-16
Growth
Growth
$
477 $
605
14.3%
26.8%
45
197
37.3%
339.3%
307
394
22.8%
28.6%
(348)
(94)
60.6%
NM
60
75
15.9%
23.8%
(15)
37
5.9%
NM
(16)
(3)
23.9%
NM
(135)
(43)
9.1%
NM
Company
Expedia
Ctrip
Tripadvisor
Qunar
HomeAway
Orbitz
MakeMyTrip
eLong
$ 13,316
10,297
9,867
3,752
2,736
1,257
630
615
Maximum
75th Percentile
Median
25th Percentile
Minimum
$ 13,316
9,974
$ 3,244
1,100
615
$
$ 66,629
$
Priceline
$
477 $
122
15 $
(46)
(348)
2,624
$
605
246
56
(13)
(94)
3,144
Profit Margin
Dec-15
Dec-16
7.3%
8.1%
2.6%
8.3%
19.8%
20.8%
(62.0%)
(10.5%)
12.1%
12.9%
(1.6%)
3.7%
(10.5%)
(1.8%)
(80.4%)
(23.5%)
P/E Multiple
Dec-15
Dec-16
27.9 x
22.0 x
230.2 x
52.4 x
32.2 x
25.0 x
NM
NM
45.2 x
36.5 x
NM
33.9 x
NM
NM
NM
NM
60.6%
27.2%
19.3%
13.0%
5.9%
339.3%
106.3%
27.7%
26.1%
23.8%
19.8%
8.5%
0.5%
(23.3%)
(80.4%)
20.8%
9.5%
5.9%
(4.0%)
(23.5%)
230.2 x
91.5 x
38.7 x
31.1 x
27.9 x
52.4 x
36.5 x
33.9 x
25.0 x
22.0 x
19.9%
19.8%
28.1%
28.1%
25.4 x
21.2 x
Source: Bloomberg, Morningstar, Yahoo Finance, Company Filings, Deerwood Estimates
Priceline enjoys an enviable 28% profit margin resulting from its strong network effects and strategic
focus on the fragmented international hotel markets, compared to peers with sub-20% or even negative
profit margins.
DCF valuation and assumptions
Revenue – PCLN grew its gross bookings 30% per year in the past five years, outperforming industry
bookings growth by 20%. Going forward, we assumed PLCN will continue gaining market share and grow
bookings by 20% from 2016-2020.
Take rate – Expecting pricing pressure from TripAdvisor’s instant booking and other possible new OTA
entrants, we forecast commission/take rates to decline slightly over time from 13.6% in 2015 to 13.1% in
2020.
Expenses – We project advertising and SG&A expenses as % of total revenue to increase slightly over time
to account for the investments needed to maintain PCLN’s market position and nurture new growth
initiatives.
12
The Priceline Group Financial Projection
($ mm, except per share)
Total Worldwide Travel Spending
PCLN Market Share %
PCLN Gross bookings
% YOY change
Agency bookings
% YOY change
Agency take rate
Merchant bookings
% YOY change
Merchant take rate
Revenue
% YOY change
Agency revenue
Merchant revenue
Advertising revenue
Cost of merchant revenue
Cost of agency revenue
Gross profit
Gross margin
Advertising expense
SG&A expense
D&A
Operating income
Interest income (expense)
EBT
Tax rate
Net income
% YOY change
Net margin
Diluted shares outstanding
EPS
CFO
CAPEX
Unlevered Free Cash Flow
2011
2012
2013
2014
2015 E
2016 E
2017 E
2018 E
2019 E
2020 E
1,150,000 1,200,000 1,250,000 1,300,000 1,340,000 1,390,000 1,440,000 1,490,000 1,550,000 1,610,000
3.1%
3.9%
4.2%
4.9%
5.8%
6.7%
7.7%
8.7%
21,658 28,456 39,173 50,300 55,922 68,563 83,270 100,132 119,162 140,282
59%
31%
38%
28%
11%
23%
21%
20%
19%
18%
17,610 23,284 32,672 42,892 48,039 60,049 74,160 90,476 109,023 129,737
63%
32%
40%
31%
12%
25%
24%
22%
21%
19%
13.4%
13.5%
13.5%
13.6%
13.6%
13.5%
13.4%
13.3%
13.2%
13.1%
4,048
5,172
6,501
7,409
7,883
8,514
9,110
9,656 10,139 10,545
41.3%
27.8%
25.7%
14.0%
6.4%
8.0%
7.0%
6.0%
5.0%
4.0%
18.0%
17.9%
17.4%
17.9%
17.9%
17.8%
17.7%
17.6%
17.5%
17.4%
4,336
5,261
6,793
8,442
9,329 11,181 13,296 15,678 18,319 21,202
40.6%
21.3%
29.1%
24.3%
10.5%
19.9%
18.9%
17.9%
16.9%
15.7%
2,351
3,143
4,411
5,846
6,548
8,124
9,959 12,060 14,423 17,034
2,004
2,105
2,211
2,186
2,326
2,498
2,658
2,801
2,925
3,024
171
410
456
559
679
816
971
1,143
1,276
1,177
1,077
858
913
980
1,043
1,100
1,148
1,187
0
0
0
0
0
0
0
0
0
0
3,079
4,083
5,716
7,584
8,416 10,201 12,253 14,578 17,171 20,015
71.0%
77.6%
84.1%
89.8%
90.2%
91.2%
92.2%
93.0%
93.7%
94.4%
954
1,309
1,926
2,591
2,907
3,593
4,399
5,334
6,401
7,599
673
879
1,260
1,712
1,900
2,303
2,766
3,291
3,876
4,518
53
65
118
208
230
275
328
386
451
522
1,399
1,830
2,412
3,073
3,380
4,030
4,760
5,567
6,443
7,375
(23)
(60)
(79)
(75)
(100)
(100)
(100)
(100)
(100)
(100)
1,368
1,762
2,297
2,989
3,280
3,930
4,660
5,467
6,343
7,275
22.6%
19.2%
17.6%
19.0%
20.0%
20.0%
20.0%
20.0%
20.0%
20.0%
1,059
1,424
1,893
2,422
2,624
3,144
3,728
4,374
5,074
5,820
100.6%
34.5%
32.9%
27.9%
8.3%
19.8%
18.6%
17.3%
16.0%
14.7%
24.4%
27.1%
27.9%
28.7%
28.1%
28.1%
28.0%
27.9%
27.7%
27.4%
51.2
51.3
52.4
53.0
52.3
52.0
52.0
52.0
52.0
52.0
$20.68 $27.74 $36.12 $45.68 $50.22 $60.46 $71.69 $84.11 $97.58 $111.92
1,342
47
1,295
1,786
55
1,731
2,301
332
1,969
2,914
131
2,783
3,241
200
3,041
3,883
250
3,633
4,604
300
4,304
5,402
350
5,052
Weighted Average Cost of Capital
Terminal Growth Rate
NPV of Unlevered Free Cash Flows
Present Value of Terminal Value
Enterprise Value
Q2 2015 Net Cash
Equity Value
Diluted Shares Outstanding
Equity Value Per Share
6,267
400
5,867
7,188
450
6,738
10.0%
3.0%
19,564
62,682
82,246
4,185
86,430
52.0
$1,660
Source: Priceline Group filings, Deerwood estimates
Discounting our free cash flow forecast at 10% weighted-average cost of capital and assuming a 3%
terminal growth rate, we estimate PCLN intrinsic value (including net cash) to be $1,660/share, or 30%
higher than the current trading price of $1,280/share.
13
Exhibits
Exhibit 1. Global Traffic Ranking of Online Travel Booking Websites
Travel Sites
Booking.com
Yelp.com
Tripadvisor.com
Expedia.com
Hotels.com
Airbnb
Kayak.com
Agoda.com
Qunar.com
Priceline.com
Ctrip.com
Orbitz.com
Easyjet.com
Homeaway.com
Opentable.com
Lonelyplanet.com
Travelocity.com
Hotwire.com
Rentalcars.com
Trivago.com
Hostelworld.com
Cheaptickets.com
Onetravel.com
Venere.com
Villas.com
Hostelbookers.com
Alexa Global Rank
84
145
168
390
435
445
480
516
559
637
1159
1348
1533
1581
1784
1788
1934
1974
2322
3161
3734
5909
6024
6872
8185
10208
Priceline Group Brands
Expedia Brands
TripAdvisor
Source: Alexa
Exhibit 2. Global Travel/Tourism Website Category Ranking
Travel Sites
booking.com
tripadvisor.com
airbnb.com
irctc.co.in
expedia.com
agoda.com
woozgo.fr
hotels.com
southwest.com
priceline.com
ctrip.com
kayak.com
Global Category Rank
1
2
3
4
5
6
7
8
9
10
11
12
Priceline Group Brands
Expedia Brands
TripAdvisor
Source: Similarweb
14
Exhibit 3. Top 10 Travel/Local Apps in the World’s Top 10 Tourism Destinations (Apple App Store)
Rank
1
2
3
4
5
6
7
8
9
10
France
United States
Spain
China
Italy
Turkey
Germany
United Kingdom
Russia
Thailand
Group Brands
TripAdvisor HotelsUber
Flights Restaurants
TripAdvisor Hotels滴滴出行
Flights Restaurants
TripAdvisor HotelsoBilet
Flights
- Otobüs
Restaurants
Bileti
DB Navigator
Uber
OneTwoTrip – дешевые
GrabTaxi:
авиа,
Book
ждa билеты,
ride Priceline
бронирование
гостиницы для путеш
Expedia Brands
BlaBlaCar - Trusted
Yelp
Ridesharing Booking.com Hotel
去哪儿旅行-酒店.机票.门票.火车票.自由行.旅游攻略
Reservations Worldwide
Booking.com
& Hotel
Hotel
Pegasus
Deals
Reservations
AirlinesWorldwide
Mobile
Ab-in-den-Urlaub.de
& HotelTripAdvisor
Deals
- Wir schicken
HotelsBlaBlaCar
Deutschland
Flights Restaurants
- Trusted
in den
AirAsiaAirAsia
Ridesharing
Urlaub
TripAdvisor
Voyages-sncf : réserver
Googleéchanger
Earth vos
BlaBlaCar
billets de
- Trusted
train携程旅行-订酒店机票火车票,查旅游攻略景点门票
Ridesharing EXPO MILANO 2015
Turkish
Official
Airlines
App Booking.com Hotel
thetrainline
Reservations
- Get
Worldwide
Yandex.Taxi
live train times
& Hotel
&Thai
buy
Deals
Lion
cheap
Airrail tickets with
our smart journey planner
SNCF
Lyft - Taxi & Bus App
Vueling
Alternative
Airlines - 同程旅游-订酒店机票火车票景点门票,出境跟团自由行邮轮自驾游
Cheap Flights
Trenitalia
WiFi Map — Passwords
Googlefor
Earth
free wireless
Googleinternet
Earth access
Gett in
(GetTaxi)
public places
- NYC
Nokhotspots.
Black
AirNok
CarAir
Service
Good alternative
& Taxi appfor roaming.
Airbnb
TripAdvisor HotelsSocialDrive
Flights Restaurants
途牛旅游-中国好声音独家互动合作伙伴
Google Earth
BlaBlaCar - Trusted
BlaBlaCar
Ridesharing
- Trusted
Booking.com
RidesharingHotel
Aviasales
Reservations
— авиабилеты
Worldwide
Google Earth
дешево
& Hotel Deals
Booking.com Hotel
United
Reservations
Airlines Worldwide
Google Earth
& Hotel违章查询-车轮查违章（2015官方专业版、免费支持全国车辆违章查询的好助手）
Deals
trivago Hotel dealBooking.com
comparison from
Hotel
Fluege.de
over
Reservations
250-booking
Finde
Worldwide
easyJet
den
sites
billigsten
worldwide
mobile
& Hotel
Flug!
MAPS.ME
Deals
– Offline
agoda
Map-with
hotelRouting,
bookingCity
in 56,000
Guide,cities
POI Location,
worldwide
Subway and Drivi
Google Earth
GasBuddy - Find Cheap
AirbnbGas Prices 铁路12306
Airbnb
Biletall - En Ucuz &
Airbnb
Uygun Uçak, Otobüs
Ryanair
ve-İdo
Cheapest
BiletiBooking.com
Satın
FaresAl, Online
Hotel
Bilet
THAI
Reservations
Rezervasyonu
Smile Airways
Worldwide
Yap
& Hotel Deals
RATP
Fly Delta
Ryanair - Cheapest
Uber
Fares
Bravofly: flights search
TripAdvisor HotelsTripAdvisor
Flights Restaurants
HotelsNational
Flights Restaurants
Rail Enquiries
Uber
UberUberUber
Uber
Airbnb
RenfeTicket
高铁管家 - 买火车票，在线退票改签
BlaBlaCar - Trusted
Uçak
Ridesharing
-Bileti
12306版
by Enuygun
iHotel – Hotel Search
Tube Map LondonRutaxi
Underground
Онлайн - заказ
AirbnbAirbnb
такси
iDTGV
Southwest Airlines
Hopper - Airfare Predictions
滴滴专车-司机版Skyscanner - Compare
BiTaksi
Cheap
- Cebindeki
Flights
FlixBus
Taksi bus app Airbnb
Слетать.ру ПоискCheap
туровflights, compare prices and all american airlines: JetBlue,
Source: Similarweb, World Tourism Organization
Exhibit 4. Top 10 Travel/Local Apps in the World’s Top 10 Tourism Destinations (Google Play Store)
Rank
1
2
3
4
5
6
7
8
9
10
France
United States
Spain
China
Waze Social GPS Maps
Waze &
Social
Traffic
GPS Maps
BlaBlaCar,
& Traffic
Trusted Ridesharing
N/A
BlaBlaCar, TrustedGoogle
Ridesharing
Earth
Google Earth
N/A
Google Earth
Yelp
SocialDrive
N/A
Mappy- ItinéraireGasBuddy
& Vie locale
- Find Cheap
TripAdvisor
Gas Hotels Flights
N/A
TripAdvisor HotelsGPS
Flights
Navigation BE-ON-ROAD
Booking.com Hotel Reservations
N/A
Airbnb
TripAdvisor HotelsGPS
Flights
Navigation & MapsN/A
Sygic
Booking.com Hotel
Foursquare
Reservations
- BestWaze
City Guide
Social GPS Maps &N/A
Traffic
PagesJaunes – recherche
MapQuest
locale
GPS Navigation
izi TRAVEL:
& audio
Maps tour guide
N/A
ViaMichelin RouteExpedia
planner,maps
Hotels, Flights
BuscoUnChollo
& Cars - Viajes Ofertas
N/A
MICHELIN Navigation
Airbnb
& Traffic
GPS Navigation BE-ON-ROAD
N/A
Italy
Turkey
Germany
United Kingdom
Russia
Thailand
Priceline Group Brands
TripAdvisor HotelsYandex.NavigatorGoogle
Flights
Earth
Google Earth
2GIS: Dubai & Cyprus
Google
maps
Earth
Expedia Brands
Google Earth
GPS Navigation &clever-tanken.de
Maps Sygic
TripAdvisor HotelsYandex.NavigatorAirAsiaAirAsia
Flights
EXPO MILANO 2015
WiFiOfficial
Map —
App
Passwords
Immobilien Scout24
Booking.com Hotel
Yandex.Maps
Reservations GPS Navigation & MapsTripAdvisor
Sygic
Booking.com Hotel
GPS
Reservations
Navigation BE-ON-ROAD
HERE
Ryanair - Cheapest
Navitel
Fares NavigatorNok
GPSAirNok
& MapsAir
Waze Social GPS Maps
Foursquare
& Traffic
- BestOffline
City Guide
maps & Navigation
easyJet
GPS Navigation BE-ON-ROAD
MapsMapsMaps
GPS Navigation &Pegasus
Maps Sygic
Airlines Mobile
GPS Navigation &Airbnb
Maps Sygic
GPS АнтиРадар (детектор)
Thailand Offline
FREE Map
Airbnb
BlaBlaCar, TrustedBooking.com
Ridesharing Hotel
Waze
Reservations
Social GPS Maps
BlaBlaCar,
& Traffic
TrustedMAPS.ME
Ridesharing
–Offline Map & Routing
GPS Navigation BE-ON-ROAD
Turkish Airlines Ab in den Urlaub Skyscanner
- Reisen
- All Flights!
Aviasales — авиабилеты
GPS Navigation
дешевоBE-ON-ROAD
izi TRAVEL: audio Yandex.Maps
tour guide
BlaBlaCar, TrustedTomTom
Ridesharing
GPS Navigation
Waze Social
Traffic
GPS Maps
Thai Lion
& Traffic
Air
Accurate Altimeter
Booking.com
Free
Hotel
TomTom
Reservations
GPS Navigation
Offline maps
Traffic& Navigation
MAPS.ME –OfflineAgoda
Map &
– Smarter
Routing Hotel Booking
Source: Similarweb, World Tourism Organization
Exhibit 5. We thank the management of these fine hotels in Los Angeles and Indonesia for providing
their insights on the independent hotel industry:
Los Angeles
The Cadillac Hotel
http://www.thecadillachotel.com/
The Elan Hotel
http://www.elanhotel.com/
O Hotel
http://ohotelgroup.com/
Indonesia
Oak Tree Emerald Semarang
http://www.oaktree-hotel.com/semarang
15
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