The year 2018 is expected to be a great year in terms of corporate trips and this is likely to threaten companies like Priceline Group Inc. and Expedia Inc.Published on : Saturday, December 9, 2017
The year 2018 is expected to be a great year in terms of corporate trips and this is likely to threaten companies like Priceline Group Inc. and Expedia Inc.
The corporate profits are quite strong and capital spending is rising as per the analysts at MKM Partners that indicate that businesses will be more receptive to sending their employees on trips next year.
But then business travellers tend to be more faithful to certain hotel brands and also they would be less likely to book through channels like Expedia that is estimated to be down by -1.40% or Priceline by over 0.01%.
An influx of business tourists might be minimizing the pressure that hotel chains feel to list the weekday rooms on online-travel sites, as added by the MKM analysts led by Rob Sanderson.
Sanderson is slightly perturbed about the positioning of Expedia going in to 2018 given that the company’s room-night growth has actually disappointed, also with the hotel occupancy rates at record levels.
He then went on to state that this is associated mainly with supply tightness that is crowding our online-travel agency customers and might be compelling them into alternative accommodations much more.
One such alternative is Airbnb.
But then, Expedia is also likely to benefit if customers opt to book on HomeAway that represents its own vacation-rental site.
Tags: Business Travel, Expedia Inc, MKM Partners, Priceline Inc., Rob Sanderson