Priceline Showcases Booking.com's Gigantic Day in Direct Booking Wars
PHOTO: Booking.com's Booking Experiences app. (Photo courtesy of Booking.com)
If hotels think most of their customers are going to reserve directly through them, Priceline is saying "no booking way."
The Priceline company Booking.com has made some saucy commercials in the past using phrases like that, but is turning even more heads thanks to crossing a milestone this past quarter. Now, the website has over one million total properties on their platform and has surpassed one million bookings per day.
Like other online travel agencies, Priceline and all of its subsidiaries are built around the concept of value—if guests are flexible with what exactly they’re looking for, prices can go down rapidly.
In the media call highlighting various positives of Priceline’s 2016 Q2, Interim CEO Jeffery Boyd called out the recent emphasis on direct booking as just another tactic hotels have used over the years. Also, while Boyd reiterated that Priceline values the partnerships the company has with various hotels company, he doubled down on the idea that guests who believe they’re saving by direct booking likely aren’t doing all of their homework.
OTAs have taken a hit in 2016 thanks to legislation in Europe and the United States that has allowed hotels to discount their rooms in order to compete with Priceline and their similar competitors. That, combined with an emphasis on loyalty programs has led many companies to change their tactics.
Priceline, however, sees nothing but blue skies ahead.
The company reports a 19 percent year-over-year increase in gross bookings for Q2 and is expecting similar results in Q3. The results were higher than previously projected.
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