Executive Summary Expedia vs Priceline Essay
Executive Summary Expedia vs Priceline
Expedia and Priceline are the leading competitors of the online travel service. With travel being one of the Internets hottest commodities, these two companies have been in competition for the top spot. Both businesses offer great deals on hotels, car rentals, and most importantly travel accommodations. The financial post online interviewed Expedia’s managing director Sean Shannon about how he keeps the online travel superstore unique. He noted that they “invest a lot in technology and software writers and coders, who work to make the shopping experience better and figure out ways to stay ahead of the curve (Ovsey, 2001).” With both companies reaching new heights of Internet success, the need to be informed of each other’s business policies and ideas is very important.
Many customers of both Expedia and Priceline already had a combined travel agency that would normally have taken care of their travel plans. When the Internet boom exploded, companies such as Microsoft jumped on the idea of having a travel agency online. The Wall Street Journal Online Edition confirms this need for technology by reporting on the company’s participation in J.P. Morgan’s annual telecom conference. The Wall Street Journal agrees, “Expedia, Inc. is the largest online travel company in the world, with an extensive brand portfolio that includes some of the world’s leading online travel brands (“Expedia, inc. to,” 2013).” This would enable a new customer base that would promote Internet sales, and an easier way of life for frequent travelers.
Selling points for both of these companies is extremely important, as the transition from a brick and mortar company to a web based company was a hard shift. These companies have not only been in competition for over 10 years, but they have boosted profits every year. The Atlantic Online posted an opinion about Priceline in 2010 regarding the success of the online travel company compared to that of Expedia. They stated, “Priceline’s stock price is up almost 90 percent, while its competitors have flat lined (Expedia) (Madrigal, 2010).”
This shows the customer, that even though these companies are in competition, they have done well enough to withstand many economic ups and downs over the years. The importance of stability and growth over the years is very important to a consumer who deserves quality in purchasing potentially high dollar items. The following report specifics the financial reports from the last three years for both companies. This provides established proof that both companies are thriving in what they do.