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According to Phocuswright, Priceline and Expedia account for nearly two thirds of OTA global gross bookings and over 90% of the U.S. OTA market. Priceline and Expedia grew their revenues 16% and 31% respectively in 2016 and 16% (both) in H1 2017, thus outpacing the online travel market growth (estimated at 10% in 2016) in spite of their already massive size. Their marketing investments grew at or above the pace of revenues. Ctrip continues to grow at spectacular rates (67% in 2016 and 45% in H1 2017) with very aggressive marketing growth as well (67% in 2016 and 45% in H1 2017). In 2016 and H12017, Tripadvisor (-1% and 7%), eDreams Odigeo (5% and 3%) and Lastminute (5% and -2%) grew below the online travel sector’s and had low or decreasing marketing year on year investments. The ratio of Marketing/Revenues grew for all competitors from 2016 to H1 2017, but the strongest increases came from Priceline and Expedia. Expedia’s ratio spiked from 40% to 57%. Ctrip is at the lowest end of the spectrum (at around 30%), and eDreams Odigeo at the highest (at around 60%). The travel sector’s estimated $12.9 billion invested in Google would be equivalent to 16% of Google’s total 2016 advertising revenues ($79 billion). It would also mean that Google’s travel revenues are $2.2bn larger than the Priceline’s, the world’s largest OTA. Read original article |
