uploads/2019/02/Chart-5-Travel-Demand-1.png

Will Expedia Benefit from Online Travel Booking Demand?

By

Updated

Rising online travel platform demand

The travel industry dynamics have changed drastically over the last decade. Travelers are shifting to online travel booking agencies instead of traditional agencies. Online travel booking agencies have gained significant momentum in the last few years due to increased mobile and Internet penetration across the world.

Travelers can easily book flights, train tickets, hotel rooms, vacation spots, and rental cars from anywhere by going to an online travel site. Users can check booking sites’ reliability by checking their ratings and reviews. Travelers can also compare flight and hotel prices on various booking platforms. Online travel agencies (IYW) usually offer multiple deals on bookings, which is an added advantage for travelers.

According to the Statista forecast, global digital travel sales will likely increase from $629.81 billion in 2017 to $817.5 billion in 2020. Another independent research firm, Technavio expects the global online booking platform to grow at a CAGR (compound annual growth rate) of 11% from 2018 to 2022. The report states that the global travel industry will increase at a CAGR of 12% from 2017 to 2023.

Will Expedia capitalize?

Having relationships with more than 200,000 hotel owners across 200 countries, Expedia (EXPE) is a leading online travel booking company. The online agency offers more than 300 packages for airline, cruise, car, and other travel bookings.

With Expedia’s enriched global footprint, product portfolio, and partnerships, the company is positioned to capitalize on the growth opportunities in the online travel market. The company’s sustained focus on technical enhancements should help it attract more users and gain more market share.

Currently, Expedia is working to incorporate AI technology into its online booking sites. The integration of AI technology will ease the booking process for users. The integration will allow users to book or cancel hotel reservations and flights with voice commands on Alphabet’s (GOOGL) Google Assistant from any device. Travelers will be able to access information about their trip itineraries and packing lists for upcoming trips with a simple voice command.

The Amplify Online Retail ETF (IBUY) has allocated 3.3% of its fund in Expedia. IBUY has also invested 3.3% of its corpus in TripAdvisor (TRIP), 3.1% in Booking Holdings (BKNG), and 1.4% in Ctrip.com International (CTRP).

More From Market Realist