Long: PCLN (Market Cap: $80.73B)
1. Summary Thesis:
The Priceline Group is an American-based company that provides travel and related services to consumers and local partners. It has six primary brands: Booking.com, Priceline.com, agoda.com, KAYAK, Rentalcars.com and OpenTable. Among these brands, Booking.com is the company’s main platform. Now, The Priceline Group operates in over 200 countries and areas and becomes the biggest online travel agency in the world.
The total revenues of the Priceline Group in 2015 were about 9,224 million. It increased 9.3% compared to the year ended December 31, 2014. And the revenue can be classified into three categories: Agency revenues, merchant revenues and advertising and other revenues. The
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It is higher than the current stock price, $1631.62 per share. Therefore, I suggest to buy the PCLN stock.
2. Background:
Agency revenues are about 70% of Priceline’s total revenues. They are derived from travel-related transactions from where Priceline is not the merchant of record and where the prices are determined by third parties. This means that Priceline plays a role of an agency, connects customers and third parties and then gets the commissions. The revenues from this part include travel, commissions, GDS reservation booking fees related to certain travel services, travel insurance fees and customer processing fees.
As the main platform of Priceline, booking.com contributes a lot of revenues to its parent company. It claims that the website lists about 1,200,000 properties in 225 countries and books 1,200,000 room nights per day. Therefore, almost all of its revenue is agency revenue made up of travel commissions.
Agency revenues for the year ended December 31, 2015 increased 11.7% compared to the year ended December 31, 2014. The growth of business of Booking.com, rentalcars.com, priceline.com and agoda.com led to the increasing. But the stronger U.S. Dollar significantly adversely affected the growth of agency revenues which was expressed in U.S. Dollars.
Merchant revenues make up about 23% of Priceline’s total revenues. They are derived from services where Priceline is the
The prices of these seats however tend to change in accordance with the days that the bookings of these flights are made available till the date of departure (Koenigsberg, Muller and Vicassim, 2008). All bookings for easyJet are made straight from either telephones or the internet; this made it very easy to incorporate the web into its central booking system. By achieving this, there were no possible channel conflicts with other intermediaries, for example with travel agents Easyjet’s website illustrates their pricing policy as being “based on supply and demand, and prices usually increase as seats are sold on every flight. Basically the sooner a person books, the cheaper the flight ticket would be”. The web also states that the low cost scheme of easyJet is not tickets, no ties to other networks, no travel agents and no on-flight meals. (easyJet plc., 2010). A pin code is also given for each customer’s booking that is done on the website which is given to travellers upon arrival at the airport.
Ryanair does not use travel agent so it does not pay agency commission. It uses directs marketing technique to recruit and retain customers, and to extend products and services to them (i.e. Customer Relationship Management). This reduces costs.
Yahoo and google have the Revenue at $73,785,000,000 for 2016 which is a $1,167,000,000 increase from 2015 when they were at $72,618,000,000. However this increase does not continue into the income statement on 01/28/17 where their revenues fell to $69,495,000,000 which is about a 6.17% decrease as compared to the 1.61% increase from the prior years. Even 2014 to 2015 saw an increase in revenue of $1,339,000,000 equating to a 1.88% increase. The profit shows a similar tended expect when a discontinued operations is involved by resulting in a loss for 2015 of $1,636,000,000. Both 2016 and 2017 reports show a profit however 2016 is gain lower than the statement for 01/28/17 with profit dropping by $626,000,000 translating to a 22.87% less
* Travel agencies: Travel agencies have strong relationships with the cruise industry as they book around two thirds of their cruise. Although this percentage is declining due to the growth of consumer knowledge and technology the percentage of cruisers using travel agents is relatively strong. (UCLIA)
Events that are in high demand would be subject to higher fees than those with lower demand. This would be beneficial to StubHub cause the lower fees could help stimulate the user into purchasing the event tickets purely because psychologically they feel as if they 're receiving a good bargain. In addition, StubHub could look to its parent company, eBay, for a unique pricing model to attract customer. If StubHub were to introduce an auction style selling system, they could help boost the sales of tickets by having users bid for thickets causing the price to increase accordingly. This unique action style selling of tickets would give them a large competitive advantage over any other online ticketing site, that doesn 't have a feature similar to this. The implementation of these new pricing models would be an ERP improvement step. By controlling and presenting the service fees and prices of tickets, they are able to control their supply cain of ticket and have lower demanded tickets selling even if its for a lower fee. Overall, StubHub would see higher ticket sales and customer satisfaction because users would be inclined to purchase more if they 're paying less and feel happier when evaluating the purchase post-sale.
Sales took the most percentage of total revenue. The revenue of sales increased gradually from $ 214,934 (in thousands) in 2010 to $ 260,832 in 2012 while the figure of royalties reduced gradually from $ 873 in 2010 to $ 681 in 2012 (in thousands). The revenue of other income increased from $ 1,286 to $ 1,325 during this period and then the figure decreased dramatically to $ 533 in the financial year 2012. In addition, in the financial year 2012, a new resource of revenue called membership was developed with the figure of $54.
$18. 30 Day’s high $17.55 trade time Apr 22, 2017, Days low $17.55 trade time change- 1.14% at 52-week high $22.51 the previous close 17.40 and low at 52-weeks $13.06 open at 17.30 the Beta 0.74 The volume was 53.823 Avg.vol 112.122 looking at the above figures the stock they are in a good position. One of their competitors is Amazon. Both companies are star rating the stocks are doing great. Overstock have had a constant and sturdy growth. The online retail giant is a threat to brick-and-mortar stores. Theirs some negative profitability, rising cost and some feel overstock price, put them in a danger zone with the stock market. Overstock up against the competitor such as Amazon, and Wayfair has declined some but not a lot. They have not deteriorated to the point they are in trouble with stock. The profitability of overstock is growing 13% compounded annually from 2002 through 2016; they have lost yet
The current enterprise value is $41,335 million and the equity value is $34,455 million. According to yahoo finance, the shares outstanding of our company are 647.31 million, so we can calculate the stock price for next year is $53.23. It will increase in following years.
TripAdvisor is the world’s largest travel site, it enables potential customers to see other opinions before they part with their cash. TripAdvisor has over 60 million visitors per month looking through over 75 million reviews of hotels and restaurants. The site operates in 30 countries worldwide making it a powerful and unstoppable force. Tripadvisor.co.uk (2013) The next review site that even comes close to TripAdvisor is booking.com with a mere 14 million reviews per month compared to the review giant of TripAdvisor.
The MGM Resort International is a reputable Fortune 500 global hospitality company that operates a diverse portfolio of destination resort brands. In this paper, we look at the pricing strategy that MGM Resort use so as to have an understanding of how the company uses the pricing strategies.
Intercontinental Hotels Group – It is British company and the most profitable among the four industry leaders. It owns, manages, leases and franchises approximately 3,741 hotels in approximately 100 countries as of 2006. It ranks number one in gross margins (54%), operating margins (24.7%) and earnings per share ($2.10) even if it’s smallest in the strategic group. It appears to be the cost leader among the big four companies in the industry.
Marketing is absolutely crucial for hotels to be able to compete with the OTAs, said Joe Humphry, former CEO of hotel booking site Travelweb from 2002 to 2004. Travelweb was launched in 2002 by Hilton, Hyatt, Marriott, IHG, Starwood, and Pegasus Solutions to give Web
Revenue is generated by delivering relevant, cost-effective online advertising. Businesses use the Google AdWords program to promote their products and services with targeted advertising. Furthermore, Google maintains advertising on thousands of third-party web sites using the Google Network and Google AdSense.
I came up with $3.2m by taking the 1st quarter revenue of $718,000 which is historically approximately 22.5% of the yearly revenue. Assuming this holds true again in 1991, the annual revenue in 1991 will be around $3.2m. This is a 19% year over year increase in revenue for BLC, which is in line with their year over year growth in 1989, and less than the 34% in the best year, 1990.
Alibaba’s most important profits mainly originated from advertisements costs and second originated from clients with value-added services in order to attract more potential clients. Alibaba is enabling sellers to register for free and there were no posting or transaction fees.