Product details

Founded in 1997, The Priceline Group (Priceline), an American Online Travel Agency / Agent (OTA) company, disrupted the online travel world with the help of its 'one-stop solution' for various travel needs. However, in 2001-02, the company's stock had crashed due to dot.com bubble burst and Priceline was about to close its business. Soon, the company adopted its turnaround plan. It decided to shut its non-travel businesses and planned to focus mostly on hotel bookings. The company also offered traditional pricing along with its signature offering 'Name Your Own Price'. Priceline also made some strategic acquisitions (Booking.com, Agoda.com, Kayak, OpenTable Inc, etc.) which further helped the company to strengthen its position in the various international markets. By 2010, Priceline surpassed Expedia to become the largest online hotel reservation service provider in the world. Further due to the turnaround strategies, Priceline outpaced the analysts' expectation and registered Gross Profit of USD10.31 billion in 2016. It was also ranked among the 'World's Most Admired Companies' list during 2016 and 2017 by Fortune Magazine. However, Priceline was facing stiff competition from its rivals such as Airbnb and Expedia. Besides, the company was criticised for its 'unfair practices' of adopting duopoly business model with Expedia. Amidst this scenario, would the re-invention strategy of Priceline help the company to survive in the dynamically changing environment of the OTA market? How the company would sustain its business model in the context of substitute offerings, disintermediation, and tough as well as direct competition from its rivals?