Ctrip.com International

For 3Q16, analysts are estimating Priceline’s revenues to grow by 16.6%, which would be higher than the 12% growth the company saw in the second quarter.

Priceline’s consensus 12-month target price is $1,479.55, which indicates an 11.5% return potential.

Hotels make up a significant part of Ctrip’s revenues—39% of total revenues in 2Q16—similar to OTA peers Priceline, Expedia, and TripAdvisor.

For 3Q16, TRIP’s revenue per shopper fell 12%. This is slightly better than the 24% decline seen in 1Q16 and the 19% decline seen in 2Q16.

RQPR rose 2.1% in 2015 to 1.5 euros compared to 1.4 euros in 2014. For the nine months ended in September 2016, RQPR fell 6.0%.

Priceline currently trades at a forward PE multiple of 19.5x. This is slightly lower than its average valuation of 19.9x since February 2006.

As of November 6, 2015, Priceline’s forward PE ratio stood at 21.8x, and its average valuation stands at 20x.

In Expedia’s 2Q16 earnings call in July 2016, CEO Dara Khosrowshahi said it would work with Trivago to file a Trivago IPO before the end of 2016.

Maverick Capital lowered its position in Baidu, Inc. in 3Q14. The position accounts for 0.36% of the fund’s total portfolio in the third quarter.

Booking Holdings (BKNG) stock is currently trading at a discounted PE valuation multiple to its peers Ctrip.com International (CTRP), TripAdvisor (TRIP), and Expedia (EXPE).

Expedia stock is trading at a PE ratio of 22.07x. At the current multiple, the stock is trading at a discounted valuation compared to its peers.

Apart from a healthy travel demand environment, Booking Holdings’ (BKNG) sustained focus on investing in marketing, alternative accommodations, people, and technology could continue driving its revenues.

Expedia’s (EXPE) revenues rose 10% YoY (year-over-year) to $2.56 billion in the fourth quarter.

With such a massive product portfolio and partnerships, Expedia is well positioned to capitalize on the growth opportunities in the travel industry.

For 2018, analysts expect TripAdvisor to report non-hotel revenues of $449 million—YoY (year-over-year) growth of ~25%.

Currently, Expedia’s (EXPE) PE multiple stands at 20.63x. At its current multiple, the stock is trading at a premium valuation to its peers.

After Priceline (PCLN) released its 3Q17 results, analysts’ estimates for 2017 and 2018 were revised downwards. For the fourth quarter of 2017, sales are expected to grow 14.8% year-over-year or YoY to $2.7 billion.

A large part of Priceline’s (PCLN) growth in the past has come from acquiring smaller companies all over the world. It had to raise debt to finance some of these acquisitions.

Hotel accommodations have historically driven Priceline’s growth. During the third quarter of the year, Priceline’s global accommodation business booked 178 million room nights.

Analysts expect Priceline’s fiscal 2017 revenues to grow 16.7% YoY to $12.5 billion, which is slightly lower than the 16.5% YoY growth seen in 2016.

In 2Q17, Priceline’s (PCLN) gross bookings grew 16.4% year-over-year to $20.8 billion.

TripAdvisor’s (TRIP) average monthly unique visitors in 2Q17 rose 18.0% YoY (year-over-year) to 414.0 million users compared to 2Q16.

For 2Q17, analysts are estimating that Priceline’s (PCLN) revenue will rise 16.7% YoY to $3.0 billion, which is higher than 12.6% in 1Q17.

Priceline’s (PCLN) fiscal 2016 performance was subdued by the dollar’s appreciation. Because Priceline has a widespread international presence, it’s prone to currency fluctuation risks.

Earlier this month, the Priceline Group (PCLN) signed a deal to acquire Momondo Group. Priceline will acquire all outstanding shares of Momondo for $550 million in an all-cash deal.

For 4Q16, analysts expect Priceline’s (PCLN) revenue to rise 16.2%, less than the 18.9% growth the company saw in 3Q16.

Currently, TripAdvisor (TRIP) has a forward EV-to-EBITDA ratio of 17.9x—lower than its average of 18.5x.

Hotel reservations accounted for 61% of Expedia’s 4Q16 revenue and remain the most important contributor to Expedia’s revenues.

Trivago spends a great deal of money on its popular ads. Three of its ads rank among the top ten most-watched travel videos on YouTube for 2016.

Trivago, Expedia’s (EXPE) German hotel booking site, filed for an IPO in the US on November 14, 2016. The expected date for the Trivago IPO is Friday, December 16.

Trivago’s revenue has risen an impressive 90.0% CAGR from 2010 to 2013. As Trivago’s markets mature, the growth rate will decline, as is evident from recent trends.

Trivago combines hotel content from various sources on its platform. These hotels are then displayed to users based on their search criteria.

In its earnings call on November 23, Ctrip.com (CTRP) announced that it acquired a majority stake in Skyscanner, a metasearch engine based in Scotland, for ~$1.7 billion.

In June 2016, Qunar (QUNR) received an initial proposal from private equity firm Ocean Management.

According to Reuter, of the 31 analysts tracking Ctrip, 26 analysts have issued a “buy,” while three have issued a “hold,” and two have issued a “sell.”

From 2012 to 2014, Priceline Group’s (PCLN) gross bookings grew at an average of 30%. For 2015, accounting for the strong US dollar, growth was just 10%.

At 39% in 2Q16, hotels formed a significant part of Ctrip’s revenue, much like other OTA (online travel agency) players.

Expedia (EXPE) currently trades at a forward PE (price-to-earnings) multiple of 20x.

Expedia and Priceline have shown interest in China’s Ctrip.com (CTRP), with Priceline also increasing its stake.

For 2Q16, analysts are estimating Expedia’s (EXPE) EBITDA to grow by 17% to $296 million with an EBITDA margin of 13%.

The AB International Growth Fund’s assets were spread across 57 holdings in May 2016, and it was managing $334.2 million in assets.

Expedia’s EBITDA margins are expected to increase to 19% in 2016 and then rise to 21% in 2017. As a result, EBITDA growth is expected to increase to 42% and 27% in 2016 and 2017, respectively.

For the last year, Expedia’s gross bookings increased 28% after increasing 16% for the two years before that. For the first nine months of 2015, gross bookings have increased 20%.