Profile: Priceline Group Inc (PCLN.O)
25 Jul 2014
Priceline Group Inc, formerly Priceline Com Incorporated, incorporated on July 30, 1998, is an online travel company that offers its customers hotel room reservations at over 295,000 hotels worldwide through the Booking.com, priceline.com and Agoda brands. In the United States, the Company also offers its customers reservations for car rentals, airline tickets, vacation packages, destination services and cruises through the priceline.com brand. It offers car rental reservations worldwide through rentalcars.com. During the year ended December 31, 2012, its international business (the majority of which is generated by Booking.com) represented approximately 82% of its gross bookings (an operating and statistical metric referring to the total dollar value, generally inclusive of all taxes and fees, of all travel services purchased by its customers), and approximately 92% of its consolidated operating income. In 2012, the Company launched Express Deals, a merchant semi-opaque price-disclosed hotel reservation service at priceline.com, which allows customers to see the price of the reservation prior to purchase but not the identity of the hotel. On May 2013, the Company acquired Kayak Software Corp. In June 2014, Priceline Group Inc acquired buuteeq, Inc..
Service Offerings - International
The Company offers a retail price-disclosed hotel service, through its Booking.com and Agoda brands. Booking.com works with over 275,000 properties in over 175 countries and territories offering reservations on various websites and in 41 languages. Hotels participate in Booking.com, which operates under an agency model, and Agoda, which operates under a merchant model, by filing rates in its extranet. Rentalcars.com offers its car hire services in more than 6,000 locations throughout the world, with customer support provided in 40 languages. Customers using rentalcars.com can book a range of vehicles online through one of rentalcars.com’s branded Websites, or they can reserve their cars by phone. Rentalcars.com primarily offers its services under a semi-opaque merchant model that allows customers to see the price, vehicle type and rental location, but not the identity of the supplier until the reservation is made.
Service Offerings - United States
Through the Company’s Name Your Own Price hotel room reservation service, customers can make reservations at hotel properties in major cities and metropolitan areas in the United States and Europe. National hotel chains, as well as several independent property owners participate in its Name Your Own Price service. The target market for its Name Your Own Price hotel room reservation service is the leisure travel market. It also operates a price-disclosed hotel service in the United States, which enables its customers to select the exact hotel they want to book and the price of the reservation is disclosed prior to booking. It offers such reservations through a merchant model, as well as through an agency model for hotel room night reservations sourced through the Booking.com extranet. Its Name Your Own Price rental car service is available in substantially all major United States airport markets.
The Company also offers a price-disclosed rental car service on www.priceline.com and other brands in the United States. Its price-disclosed rental car service operates under the agency model, under which it earns a commission upon rental car return, and accommodates one-way and off-airport reservations. Customers can select the rental car brand, car type, pick-up location and price prior to booking.
The Company’s Name Your Own Price airline ticket service operates in a manner similar to its Name Your Own Price hotel room reservation service. It also offers its customers in the United States the ability to purchase retail airline tickets at disclosed prices and with disclosed itineraries. The Company’s vacation package service allows consumers in the United States to purchase packages consisting of airfare, hotel and rental car components. Consumers can select the exact hotel or resort that they want to reserve, and then select either a retail airline ticket or an opaque airline ticket for the air component of their package. In addition, customers can elect to add a rental car to their package. Vacation packages are sold at disclosed prices, although consumers cannot determine the exact price of the individual components on its Website.
The Company offer priceline.com customers the opportunity to purchase through us destination services (e.g., parking, event tickets, ground transfers), cruises and travel insurance. The Company earns a commission on destination services and cruise bookings. The Company retains a fee for every insurance package purchased through us. The travel insurance is arranged for by BerkelyCare, a division of Affinity Insurance Services, Inc. and underwritten by Stonebridge Casualty Insurance Company, an AEGON Company. The Company retains a fee for every optional insurance package purchased by its customers.
The Company competes with Expedia, Hotels.com, Hotwire, Elong, CarRentals.com, Venere, Travelocity, lastminute.com, Holiday Auto, Zuji, Sabre Group, Orbitz Worldwide, Tui Travel, Gullivers, octopustravel, Superbreak, hotel.de, Hotel Reservation Service, AutoEurope, Car Trawler, Ctrip, MakeMyTrip, Rakuten, Jalan, Wotif, Google, Yahoo!, Bing, Facebook, Groupon, Living Social, Kayak.com, Trivago.com, Mobissimo.com, FareChase.com, Qunar, Cheapflights.com, HotelsCombined, TripAdvisor, Travelzoo,Cheapflights.com, Galileo, Travelport, Amadeus and Sabre.
Priceline Group Inc
800 CONNECTICUT AVE
NORWALK CT 06854