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Expedia Extends Mobile Dominance with its Recent Acquisition Strategy
Consumers rely on Expedia more when using their mobile devices
Boston, MA – March 12, 2015 – According to the recent report Priceline versus Expedia: The Battle for the Future published by Strategy Analytics the two Online Travel Agencies are successfully courting distinct users. But the strategy has led Expedia to own more than 60% of all sessions despite a smaller installed base.
Click here for the report
Despite appealing to different demographics both Priceline and Expedia face challenges in growing the overall market. Today, less than 6% of AppOptix panelists have Expedia or Travelocity installed on their mobile device and just .5% have both apps installed.
The biggest question the companies face is which strategy will help them succeed in the long term? As travel becomes a more local experience Priceline’s acquisition of OpenTable – if integrated into the broader Priceline ecosystem – could be an important tool and an indication their strategy is best devised. Today, just 37% of the Priceline installed base also has OpenTable Installed. This figure represents less than 25% of the entire OpenTable Installed base presenting a good branding opportunity.
Expedia on the other hand may want to consider utilizing the installed base of newly acquired apps to bolster usage of its main application. Orbitz in fact has a higher installed base than either Priceline or Expedia with just a 27% shared installed base with Expedia. Travelocity has a much smaller installed base and integrating into the main Expedia app could provide sufficient cost savings.
According to Josh Martin, Travel Analytics Research Service Director, “Priceline and Expedia are both developing unique and interesting growth strategies. By understanding the user bases of recent and potential acquisitions and mapping that to future growth these companies can determine the best promotion and integration strategies. In addition, companies may purchase hidden gems such as Orbitz which has proven very strong in mobile.”
Priceline versus Expedia: The Battle for the Future – which provides in depth analysis of these OTAs as well as the best ways to reach their respective installed bases is now available.
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