Bellevue, Washington – 09 January 216
Shares of online travel agent Expedia could climb 25 percent in a year as cashflow per share begins to double following a string of acquisitions, financial newspaper Barron’s reported.
Trends in hotels, which are more lucrative than flights, are improving and Expedia is capturing more of those bookings because of deals it has made, including taking a majority stake in hotel search site Trivago in 2013 and buying Orbitz and Travelocity in 2015.
Expedia also bought HomeAway in 2015 to profit from vacation homeowners renting to travellers.
At the same time, Expedia has continued to invest in its technology, including smartphone apps, and has fortified its position in the business along with Priceline Group.
Upstarts would have trouble now replicating Expedia’s network of partnerships with hotels, Barron’s said.