Overview Of The Priceline Company
Priceline was founded in 1998 and changed the way travelers book their vacations. Priceline is part of and owned by Book Holdings, Inc. (Nasdaq: PCLN), which includes Booking.com, Agoda.com, Rentalcars.com, Kayak.com and now Open Table. Its previous owner and founded was Jay S. Walker, who left the company in 2000. Priceline.com offers discounted rates for travel-related purchases such as airline tickets and hotel stay. They facilitate the provision of travel services from its suppliers to its clients. Priceline top competitors are tripadvisor, Airbnb, homeaway, cleartrip, Liberty Interactive Corporation, BCD Travel, Hotels.com, Hotels.com and Calrson Wagonlit Travel. Since the launch of Airbnb they have been seen as one of Priceline’s top competitors. Their headquarters is located in Norwalk, CT. Priceline’s profit is calculated as the difference between the proce suggested by a customer and the one charged by the service provider. In 2018 they received a total revenue of 3537.09, total operating expenses 2315.84 and operating income 1221.26. Priceline.com has experimented with selling gasoline and groceries under the Name Your Own Price model in 2000, through a partially owned affiliate, WebHouse Club.
Priceline Group strategy has enabled them to remain ahead in the online travel business ever since it was launched. First, the patented business model has ensured that it is stable with those who own stake in the company being part of its customers as well. Moreover, these stakeholders make reliable recommendations to clients on behalf of the company. Through Booking.com, clients suggest the prices they feel more comfortable with and the company provides suggestions that may fit what the clients want. Through the rentalcars.com, platform, the company provides clients with suggestions on best rental car companies and prizes. Airline tickets and hotel reservations are done through Priceline.com platform. The company generates sales on the margin, keeping the difference what a client pays Priceline Group and what Priceline Group pays for tickets for accommodation, rental cars, and airline travels. Through this strategy, Priceline Group has been able to maintain earning of over $4 billion annually in gross profits with an EPs of over $30.
A SWOT analysis of Priceline Group shows that it has several internal strengths. These include; efficiency in how they handle clients, the company's international presence makes it trustworthy, a loyal customer base that spans across countries, being able to easily expand and tap into new countries, and the brand name that has become famous on both search engines and websites of airlines and international hotels. On the other hand, the company has several weaknesses. For instance, there threats such as terrorism that disrupts the company's operations. Secondly, the company does not own hotels, rental cars, or airlines. It therefore must rely on other providers.
Lastly, the company must always keep an eye on the highly volatile stock market. Priceline strategy is very effective. First, by asking clients what their price ranges are, the company gives the clients a friendly environment to choose the best services that match their financial capabilities in an honest way. Secondly, the close association with service providers such as airlines, hotels, rental car companies makes the company to be able to secure the best services for her clients. The patent mode of business gives it stability in that many people have a hand in its operations. As a result, the company reaches many people through connections and networks it has created.
