PCLN - Priceline Group Inc.

[rishig]

[Liberty]

 

What he explains starting at 13 minutes in the video is something worth understanding that I think many people are missing:

 

?t=13m 

[LongTermView]

Serena Williams promotes Booking.com on Instagram: http://www.dailymail.co.uk/news/article-5125989/Serena-Williams-shows-honeymoon-spot-plug.html

[bonkers]

I consider Google by far the main threat to PCLN.

 

In the past Google has made only half-hearted efforts to enter the travel business outside of selling search "ad space". However, now it seems that they are in the process of first displacing metasearch engines, and then all OTAs. After all, isn't it about finding, selecting and getting the reservation done?

https://www.google.com/intl/en/ads/hotels/#?modal_active=none

 

Google Hotel Ads (GHA), and especially how it's priced, seems to be positioned as an alternative to hotels who are fed up paying OTA fees. And they have a long list of technology partners, but these need to be contacted by the hotelier to explore compatibility, so the list might be partly illusory.

https://www.google.com/intl/en/ads/hotels/find-a-partner/#?modal_active=none

 

I found this especially helpful and revealing what they're trying to do, and can easily understand why:

https://www.mirai.com/blog/how-to-use-google-hotel-ads-to-strengthen-your-direct-sales/

 

The traditional argument has been that travel ads are too important for Google to screw up, but to me it seems that that is exactly what they are doing. So I wouldn't bank on it too much. I think Google can both have the cake and eat it, too. If PCLN and EXPE say fine, we won't advertise on Google, where are they going to advertise? Tv surely cannot compansate for missing out on Google. Some 60 % of people start their travel research on it.

https://skift.com/2016/11/01/googles-travel-business-is-already-twice-the-size-of-expedias/

 

However, GHA has been up and running since 2015 or so, but does anyone know how successful they've actually been? As Bezos says, the only thing that's disruptive is customer adoption. I see this could either remain very small, or then grow quickly over time to really fight for market share and eat part of PCLN's fees.

[Jerry Capital]

Ctrip and OpenTable team up to provide Chinese users with a convenient way to discover and book tens of thousands of restaurants across North America

 

 

Ctrip (Nasdaq: CTRP), China's largest online travel agent and the second largest in the world, today announced that Ctrip Gourmet List, an industry leader in POI information and a leading domestic China sharing and discovery platform for restaurants, has formed a partnership with The Priceline Group's OpenTable, the world's leading provider of online restaurant reservations.

 

https://www.prnewswire.com/news-releases/ctrip-and-opentable-announce-partnership-300580419.html

[bonkers]

Ctrip and OpenTable team up to provide Chinese users with a convenient way to discover and book tens of thousands of restaurants across North America

 

If I'm not mistaken, Ctrip and Booking have been allied at least since 2012, offering their platforms to each other. Most imporantly Ctrip has got access to Booking's hotel network outside of China. This just completes the picture, and is probably quite small in terms of importance.

 

It's a pity that OpenTable is so weak in Europe, where it would have best intra-company synergies with Booking's hotels. To my eyes Michelin's Bookatable is much more prominent in Europe, but I have no real data.

[Jerry Capital]

When scanning through some of forums in the "investment ideas" section I have found it very useful (for me to get up to speed on a long thesis) for it to include even the small details. I can read through one of those in a few hours and paint a chronological one, two, three or even five year picture in some instances. I hope by adding my details I can help others get up to speed here as well.

 

"The little details add up until they represent significant differences. Let nothing slip through the cracks” – Bill Belichick

 

That said, it looks like the move higher in the euro today is somewhat responsible for the strength in $PCLN shares ;)

 

Thanks

 

 

[Liberty]

YCG letter, contains a nice overview of the Priceline model:

 

http://www.ycginvestments.com/media/39-2017-12-31-Client-Letter---Final-(website).pdf

[Liberty]

Weitz on their new PCLN position:

 

https://weitzinvestments.com/resources/documents/Literature_and_Publications/Commentary/2018/AnalystCorner_PricelineGroup.pdf

[vinod1]

YCG letter, contains a nice overview of the Priceline model:

 

http://www.ycginvestments.com/media/39-2017-12-31-Client-Letter---Final-(website).pdf

 

Thanks for the link Liberty. Did not come across this site before. Lots of good info.

 

Vinod

[Liberty]

Priceline is changing its name to Booking Holdings:

 

https://www.prnewswire.com/news-releases/the-priceline-group-inc-nasdaq-pcln-announces-name-change-to-booking-holdings-inc-300601628.html

[PLynchJr]

What an awful name.  Seems completely unnecessary.  :o

[Dynamic]

Looks we'll either need a new thread named BKNG - Booking Holdings Inc. or to rename this one as of February 27, 2018.

 

As a UK resident, Priceline meant nothing to me. Booking.com and Kayak.co.uk are the brands I've heard of. It's only by reading some Value fund annual reports that I discovered it had anything to do with travel, but that might be my a function of where I live and what ads I've seen.

 

The competitive position and I've read about does make this look like a company I'm interested in, especially with the value it offers the fragmented European independent hotels market.

[Liberty]

What an awful name.  Seems completely unnecessary.  :o

 

The vast majority of the business is Booking.com so it makes sense. I suspect we'll get used to calling them just Booking...

 

It's not a bad branding opportunity. They've been investing a lot in that, and the more people go to them direct (via app or search, or recognize the ads and are more likely to click on them because they like the brand, which reduces prices at auction) the better for them.

[PLynchJr]

I understand the reasoning.  Booking Holdings just sounds bad IMO.  Why not Booking.com if you feel the need to change the name?

[Liberty]

I understand the reasoning.  Booking Holdings just sounds bad IMO.  Why not Booking.com if you feel the need to change the name?

 

Probably because it's not just booking.com but a collection of holdings? I don't think it'll matter, we'll get used to it. I remember when the Firebird browser changed its name to Firefox, I thought it was weird as hell and much worse. Now I have to make an effort to remember. Same when Apple changed from iBook and Powerbooks to Macbooks and Macbook Pros... Sounded really bad at first, but now it's totally normal and fine. Maybe it's just me, but I try not to judge these things until I've had time to get used to them.

 

Tronc, on the other hand, will never be a good corporate name ¯\_(ツ)_/¯

[scorpioncapital]

The new name, 'booking holdings' reminds me how much of a commodity business it is or will become! :)

 

[merkhet]

Tronc, on the other hand, will never be a good corporate name ¯\_(ツ)_/¯

 

LOL, agreed. #NeverTronc

[Liberty]

The new name, 'booking holdings' reminds me how much of a commodity business it is or will become! :)

 

Care to elaborate on why you think that's the case?

[Jurgis]

Is Booking.com different from Priceline.com?

 

I've used Priceline.com in the past and never used Booking.com

 

I'm one of the "zero CAC"  ;) customers since I go directly to OTA site and don't do Google/whatever searches. But having multiple brands/websites for the same company confuse me, so... clarification would help.  8)

[Liberty]

Is Booking.com different from Priceline.com?

 

I've used Priceline.com in the past and never used Booking.com

 

I'm one of the "zero CAC"  ;) customers since I go directly to OTA site and don't do Google/whatever searches. But having multiple brands/websites for the same company confuse me, so... clarification would help.  8)

 

Booking.com is by far their biggest site and is dominant in the very fragmented Europe market (“The Group’s 27 million bookable rooms are spread across 1.5 million properties, putting the average property size at under 20 rooms. These are not large branded hotels. These are small independents with greater need of assistance than branded hotel” https://weitzinvestments.com/resources/documents/Literature_and_Publications/Commentary/2018/AnalystCorner_PricelineGroup.pdf ).

 

Booking is actually an acquisition. They bought it for $133m in 2005:

 

https://www.eyefortravel.com/archive/pricelinecom-acquires-bookings-bv

 

And now it's probably worth most of the company's $92bn market cap. One of the all-time greatest deals.

 

Priceline.com was founded in 1997 and had a different model initially:

 

Priceline first became known for its Name Your Own Price system, where travelers would name their price for airline tickets, hotel rooms, car rentals and vacation packages. While the purchaser can select a general location, service level and price; the hotel, rental car company and/or airline (as well as the exact location of the hotel and the exact flight itinerary) is disclosed only after the purchase has gone through, with no rights to cancel.

 

https://en.wikipedia.org/wiki/Priceline.com

[Jurgis]

I guess I have to search on both even though they are owned by the same company.

Which is a bit weird, though I understand some of the reasons.

8)

 

(Actually, I just search on Orbitz and Priceline out of habit, but maybe I'll try Booking too if I don't forget next time...)

[Liberty]

BKNG Q4:

 

http://ir.bookingholdings.com/static-files/05e91252-845c-476a-a236-9f3599d54cf3

 

 

[Liberty]

Small software acquisition:

 

https://www.prnewswire.com/news-releases/booking-holdings-announces-it-has-signed-an-agreement-to-acquire-fareharbor-300632814.html

 

Suggestion: Maybe some admit or Ross could edit the original post in third thread and change the title to "BKNG - Booking Holdings" for people coming here through the search function?

[Liberty]

Q1:

 

http://ir.bookingholdings.com/static-files/8b051eaa-2069-4504-8bca-d8c6b9e2d443

 

Booking Holdings Inc. (NASDAQ: BKNG) today reported its 1st quarter 2018 financial results. First quarter gross travel bookings for Booking Holdings (the "Company," "Booking Holdings," "we," "our" or "us"), which refers to the total dollar value, generally inclusive of taxes and fees, of all travel services booked by its customers, net of cancellations, were $25.0 billion, an increase of 21% over a year ago (approximately 12% on a constant-currency basis).

 

Booking Holding's total revenues for the 1st quarter were $2.9 billion as compared to gross profit of $2.3 billion, a 25% increase from the prior year (approximately 18% on a constant-currency basis). Revenue in the 1st quarter of 2018 includes a favorable adjustment of approximately $27 million to a loyalty program liability. Net income in the 1st quarter was $607.2 million, a 33% increase versus the prior year. Net income was $12.34 per diluted share, a 35% increase as compared to the prior year. Net income in the 1st quarter of 2018 includes approximately $55 million of net unrealized gains on marketable equity securities during the period, pursuant to the adoption of a new accounting update effective for periods beginning after December 31, 2017.

 

Non-GAAP net income in the 1st quarter was $590 million, a 20% increase versus the prior year. Non-GAAP net income was $12.00 per diluted share, a 21% increase compared to $9.88 per diluted share a year ago. Adjusted EBITDA for the 1st quarter was $798 million, a 26% increase versus a year ago. Non-GAAP net income and adjusted EBITDA exclude the favorable loyalty program liability adjustment and net unrealized gains on marketable equity securities of approximately $27 million and $55 million, respectively. The section below entitled "Non-GAAP Financial Measures" provides definitions and information about the use of non-GAAP financial measures in this press release, and the attached financial and statistical supplement reconciles non-GAAP financial information with Booking Holdings' financial results under GAAP.

 

Stock down 7% after hours.. History repeats itself. The company has a great quarter but sandbags the next one, stock sells off, then they surprise everyone the next Q.. happened last year.