According to Investor website Priceline the company behind Booking.com have shown an International sales surge of "90% to $612.9 million. Gross bookings, or the value of all travel services booked by customers, popped 70% to $5.8 billion. International gross bookings rose 98%. U.S. gross bookings grew 13%."
According to the report Booking.com has enjoyed the strongest showing in Europe, where it boasts the biggest supply of hotels online on the continent, says Susquehanna Financial Group analyst Herman Leung he also then continued to say that Priceline's dominant supply position in Europe has helped it stifle competition.
The word stifle was the analysits choice of phrase in the initial article and not added by us! We wouldn't dare to suggest that the strategy of bidding for hotels own names on Google Adwords would ever stifle competition nor lead to switch selling buyers from going direct to buying through Booking.com. We would suggest however that it increases the cost to the individual hotels if they wish to secure their own brand and leads to less direct traffic for them.
An extranal analyist, Wedbush Securities Edward Woo, comments further, "The reason why Booking.com is the preferred site is it has a lot more (inventory) of all the hotels, while others have a smaller percentage of hotels," adds
Booking.com also has a savvy search engine marketing team, says Leung, which has been able to leverage its dominant supply position in Europe to buy a larger and more targeted set of keywords for the hotels Google (GOOG) users may be targeting. See above!
Amazing growth figures for sure but which part of the industry is really paying for it all?