Thomas Barwick
We go into the granulars of the OTA market and competition in our Expedia (EXPE) article here.
Investment Thesis
Booking Holdings (NASDAQ:BKNG) is the largest player in the OTA market. BKNG’s dominance in the European market and its shift toward the merchant model have been key drivers of its superior margins. The company’s strategic focus on expanding its customer base and leveraging its network effect for further growth in offerings has contributed to its excellent fundamentals.
EXPE, BKNG, BuildingBenjamins
BKNG Core Growth: A Shift to Merchant
BNKG’s broader strategy is to shift more of the mix toward merchant offerings. According to BKNG, merchant offerings will provide a boost to top-line growth rates as they allow BKNG to dictate terms of payment with consumers. Potentially, this could allow for broader terms with consumers, which may include more payment methods or longer pay periods. BKNG’s dominance in the European market, in our view, can be largely…
