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Will the Expedia-Thomas Cook Deal be Mutually Beneficial?
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Expedia, Inc. (EXPE - Free Report) recently partnered with British tour operator Thomas Cook to provide access to its booking platform and 60,000 hotels to the latter’s city and domestic holiday businesses. The duo aims at boosting each other’s stake in the European market.
How Will Expedia Benefit?
Both the former and the just appointed CEOs of Expedia have emphasized on Europe as a key market. The company is already eyeing expansion of its railway booking services to Europe.
That being said, the company’s partnership with one of the continent’s leading holiday company reflects that it’s banking on Europe for much of its international growth. The partnership is likely to help Expedia expand its client base outside the United States and that could drive the next phase of revenue and margin expansion.
This could also enable the company better compete with the likes of Priceline , Alphabet (GOOGL - Free Report) subsidiary Google and Facebook that are gradually encroaching its turf.
What’s on Thomas Cook’s Platter?
Expedia’s platform will power Thomas Cook's primary websites, stores, distribution and contact centers. Through its booking platform, Expedia will help Thomas Cook sell its sun and beach package holidays on a global basis.
Thomas Cook CEO, Peter Fankhauser stated, “the combination of Expedia's portfolio of hotels and best-in-class online technology will transform Thomas Cook's city breaks and hotel-only offer for customers while helping the business take an important step forward in delivering our strategy for profitable growth."
To Conclude
Expedia has a prudent growth plan for both domestic and international markets and at the foundation of this plan is technology and diversity. Management has an effective quantitative model that helps to study customer behavior and spending patterns, as well as the company’s success rates.
These success rates are in turn used for winning suppliers and increasing the choices offered to consumers. The wealth of choices helps attract more customers, which in turn generates revenue growth and margin expansion. It is this platform that hotels and travel providers like Thomas Cook are attracted to, and for which they are willing to pay a handsome commission.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Will the Expedia-Thomas Cook Deal be Mutually Beneficial?
Expedia, Inc. (EXPE - Free Report) recently partnered with British tour operator Thomas Cook to provide access to its booking platform and 60,000 hotels to the latter’s city and domestic holiday businesses. The duo aims at boosting each other’s stake in the European market.
How Will Expedia Benefit?
Both the former and the just appointed CEOs of Expedia have emphasized on Europe as a key market. The company is already eyeing expansion of its railway booking services to Europe.
That being said, the company’s partnership with one of the continent’s leading holiday company reflects that it’s banking on Europe for much of its international growth. The partnership is likely to help Expedia expand its client base outside the United States and that could drive the next phase of revenue and margin expansion.
This could also enable the company better compete with the likes of Priceline , Alphabet (GOOGL - Free Report) subsidiary Google and Facebook that are gradually encroaching its turf.
What’s on Thomas Cook’s Platter?
Expedia’s platform will power Thomas Cook's primary websites, stores, distribution and contact centers. Through its booking platform, Expedia will help Thomas Cook sell its sun and beach package holidays on a global basis.
Thomas Cook CEO, Peter Fankhauser stated, “the combination of Expedia's portfolio of hotels and best-in-class online technology will transform Thomas Cook's city breaks and hotel-only offer for customers while helping the business take an important step forward in delivering our strategy for profitable growth."
To Conclude
Expedia has a prudent growth plan for both domestic and international markets and at the foundation of this plan is technology and diversity. Management has an effective quantitative model that helps to study customer behavior and spending patterns, as well as the company’s success rates.
These success rates are in turn used for winning suppliers and increasing the choices offered to consumers. The wealth of choices helps attract more customers, which in turn generates revenue growth and margin expansion. It is this platform that hotels and travel providers like Thomas Cook are attracted to, and for which they are willing to pay a handsome commission.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>