Expedia EXPE is firing on all cylinders to expand footprint further in the online travel space with the aid of its expanding services portfolio.
Recently, the company rolled out a new service called Expedia Action. This will enable users in managing their travel planning by utilizing voice usage in collaboration with Alphabet’s GOOGL Google Assistant.
Notably, this will aid the company in delivering hands-free travel management experience to its users.
Moreover, this will enhance the company’s key offerings which in turn will aid it in attracting more travelers to its platform. Consequently, this will bolster its market position and top-line growth.
Coming to the price performance, shares of Expedia have lost 1.9% on a year-to-date basis against the industry’s rally of 3.3%. Intensifying competition in the online travel space is affecting the company. However, its expanding services portfolio will help the stock to rebound in the long haul.
Online Travel Space Holds Promise
In this data driven world, online travel space has gained significant momentum, thanks to the increasing penetration of internet usage.
Further, growing proliferation of smartphones worldwide have made it easier for the travelers to book their flight and train tickets, hotel rooms, rental cars at vacation spot and to name a few, from anywhere just by signing into an e-commerce travel site.
Reportedly, the global travel industry is projected to witness growth of 12% over a period of 2017 to 2023.
Further, a report from Technavio suggests that the worldwide online travel booking platform market is expected to witness a CAGR of 11% between 2018 and 2022.
Robust Services to Aid Growth
We believe Expedia is well poised to reap benefits from this rapidly growing market on the back of its technical advancements and robust travel services.
With the latest move, the company aims at incorporating the immense possibilities of artificial intelligence (AI) technology into its core online travel business to ease the booking process for its users.
The users will be able to book as well as cancel their hotel and flight reservations, get information on packing lists for upcoming trips and access to Expedia trip itineraries with the help of voice commands from any device with Google Assistant.
Further, users will be able to track their reward points on the linkage of their Expedia accounts with the new service.
Apart from this, the company rolled out a cost saving facility for the travelers called Add-On Advantage in June. This allows the travelers to avail discounts up to 43 percent on hotel bookings.
Notably, Expedia with technical advancements on its platform and customer friendly services will continue to enhance the travel experience for its users. This will help the company to rapidly penetrate the e-commerce market which as per Statista report, is expected to generate $1.7 trillion revenues in 2018.
Further, revenues are projected to hit $2.5 trillion in 2022 at a CAGR of 9.6% between 2018 and 2022.
Expedia, Inc. Revenue (TTM)