According to Forbes, hotels represent 97% of Priceline's revenue with 23% margins. Car rentals and cruises represented 9% margins and airlines at 3% margins.
Assuming Expedia and Orbitz have similar profiles, then this is really a market share fight to capture the largest pool of hotel transactions.
Does anyone know why there's such a huge disparity in these different types? I'd think the revenue would start getting driven down toward the value added, and I can't imagine the value added by a website varies so much between plane tickets, car rentals, and hotel booking.
Assuming Expedia and Orbitz have similar profiles, then this is really a market share fight to capture the largest pool of hotel transactions.
http://www.forbes.com/sites/greatspeculations/2013/01/10/bre...