2024-04-04 19:54:10 ET
Summary
- Expedia Group dominates the US OTA (Online Travel Agency) market.
- Heavy investment into AI to drive personalization of offerings and new large-scale rewards offerings, consolidating more than 300 million customer data profiles into a single database.
- Travel spending is on the rise, with consumers prioritizing travel over other expenses, indicating a strong rebound in the travel industry.
- The alternative accommodation market is a key growth area with EXPE’s likely going to use Vrbo to expand into packaged experiences.
In the past decade, the OTA (Online Travel Agency) industry has become more concentrated, with two players emerging on top: Booking Holdings Inc. ( BKNG ) and Expedia Group, Inc. (EXPE). These OTAs represent a significant portion of the market-some 92% of the US OTA market-and command considerable pricing power with both consumers and service providers. Additionally, their combined brand portfolios hold significant brand recognition among consumers of all income levels and travel service consumption trends. The global travel market is expected to grow at above GDP levels, averaging 3.5% CAGR to breach just over $1 trillion per year in 2028 .
Expedia Group, Inc. ((EXPE)) | Booking Holdings Inc. ((BKNG)) | Airbnb, Inc. ( ABNB ) | |
Closing Price | $137.10 | $3633.16 | $168.59 |
EPS (2024E) | $12.00 | $175.03 | $4.33 |
EPS (2025E) | $15.00 | $205.33 | $4.94 |
EPS (2026E) | $16.65 | $232.02 | $5.93 |
Gross Buyback Authorized (%) | 25.7% | 11.2% | 5.5% |
Gross Buyback Authorized () | $4.8 | $14.0 | $6.0 |
Market Cap. () | $18.7 | $124.0 | $109.0 |
Dividend Yield (2024E) | 0.00% | 1.00% | 0.00% |
Net Income Margin | 5.36% | 20.07% | 48.32% |
EV/EBITDA | 7.1 | 16.0 | 24.7 |
FCF () | $1.8 | $7.0 | $3.9 |
PEG (2024E) | 1.0 | 1.6 | 1.9 |
P/E (2024E) | 11.4 | 20.7 | 38.9 |
P/E (2025E) | 10.9 | 17.7 | 34.1 |
P/E (2026E) | 8.2 | 15.7 | 28.4 |
P/S (2024E) | 1.3 | 5.4 | 9.7 |
P/S (2025E) | 1.2 | 4.9 | 8.7 |
P/S (2026E) | 1.2 | 4.5 | 7.7 |
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For further details see:
Expedia Group: Travelling Toward Recovery And Breakout From The U.S.