BOOKING

Analysis before buying or selling Booking shares

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Before starting to take a position on the Booking share price, you must ensure that you have sufficient knowledge to carry out a complete analysis. This is why we suggest you discover some relevant information you should know as part of your analysis such as the activities and sources of income of the company, its main competitors on the market and some examples of recent strategic partnerships. You'll also discover the elements that could help you in your fundamental analysis of this stock.

Elements to consider before selling or buying Booking shares

Analysis N°1

First, keep an eye on the online travel booking sector and on the evolution of consumer habits in this area in order to assess whether Booking has growth possibilities in the more or less long term.

Analysis N°2

You should of course also keep an eye on the development strategy of Booking's international activities and in particular on operations aimed at positioning it in certain promising markets such as emerging markets in Asia.

Analysis N°3

It's also important to carry out a complete analysis of the increasing competition which is more and more aggressive in this sector of activity. You should therefore follow the arrival of new adversaries and the publications, events and other financial data concerning its historical competitors.

Analysis N°4

All the economic, political and health events that can slow down tourism is also data to be taken into consideration as they directly impact the sales made by Booking and therefore its profitability.

Analysis N°5

You should also take into account all the group's communications to its shareholders, such as its strategic development plans and its announcements of partnerships and acquisitions.

Analysis N°6

Always end this analysis with a study of the financial results of the group that should be compared with analysts' forecasts and with the objectives that the group has set for itself.

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General presentation of Booking

To properly analyse the Booking stock, you must first know the company and its activities perfectly. For the best chances of success, it's essential to understand how Booking generates its income to predict its growth or recession depending on certain events. Here is a quick overview of the group.

The Booking Holding Inc. group is an American group specializing in the tourism and travel sector. More specifically, the company is currently one of the world leaders in the online travel agency sector.

Among the services offered by the company, which operates exclusively on the Internet, the possibility to book a hotel, rent a car, book a plane ticket, take advantage of combined stays, tailor-made trips and even book a cruise.

It's also interesting to know the geographical distribution of the income of the Booking group. Although based in the United States, Booking only achieves 10.2% of its turnover on the American market. It is in fact in the Netherlands that it achieves the largest share of its income with 77.6% of its turnover. The rest of the turnover, i.e. 12.2%, is generated in the rest of the world.

Analysis before buying or selling Booking shares

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The major competitors of Booking

Now check out some important information concerning the sector of activity in which the Booking group operates. Booking faces some major competitors that you must know in order to analyse them as part of your study. Here are the two largest current opponents of the group:

Airbnb

First of all, one of Booking's main opponents is the Airbnb group, which recently went public. This company operates through a paid community rental platform service between individuals. It was created in 2008 by three Americans and its website now has several million listings offering accommodation all over the planet. Bear in mind that with regard to the European market, Airbnb operates through its subsidiary Airbnb Ireland Private Unlimited Company Dublin which is a company incorporated under Irish law.

Expedia

Booking's second major opponent is none other than Expedia, which is another American company based in Seattle and which operates several online travel agencies including Expedia.com, Hotels.com or Hotwire.com and many more. In total, there are more than 90 points of sale brands that Expedia operates in some 60 countries. The group also operates travel reservations for a number of airlines and hotels as well as consumer brands, high traffic websites and thousands of active affiliates through the Expedia Affiliate Network. The group is of course listed on the stock exchange and is part of the composition of the S&P 500 index.

The major partners of Booking

Knowing the competition of the Booking group is essential to properly analyse this value. But you should also be interested in the company's strategic partners. To better understand their interest, here are two recent tangible examples of alliances set up by the company.

Air France

First of all, in 2018, the Booking group set up a new strategic partnership with the airline company Air France, aimed at offering customers a more complete, simplified and digitized travel experience. Customers who book a flight via Air France and Joon now have the possibility of booking a hotel or accommodation more easily via Booking and through a dedicated page. Another advantage for customers who book their accommodation through the page dedicated to Booking is that they earn one Mile for each euro spent.

Grab

Another interesting strategic partnership was signed in 2019 with the transport service Grab. Bear in mind that the Booking service and app for booking hotels and accommodation is available in 8 countries in South-East Asia. Thanks to its partnership with Grab, its customers can now book VTC drivers and taxis available on the Grab application. This app has been designed in such a way as to allow customers to book and pay for accommodation and transport on demand from a single interface. Another factor is that Booking is also a shareholder of the Grab Company and that this app therefore allows customers to also book housing.

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Frequently Asked Questions

What was the Booking Holding Company called before?

Initially, the American company that we know today as Booking was called Priceline Incorporated. In 2014, the group first changed its name to the Priceline Group. But it wasn't until February 2018 that the company finally took the name of Booking Holding, referring to the Booking.com subsidiary that it had bought previously. The company name was also changed in 2018 from PCLN to BKNG in the stock market.

What is the latest known financial data about Booking?

For the 2019 financial year, the Booking Holding group achieved a turnover of 15.066 billion dollars with an operating profit of 5.345 billion dollars and a net income of 4.865 billion dollars. The group's total assets at the end of this fiscal year were $ 21.102 billion and its equity stood at $ 5.933 billion.

Where can I follow the news of the Booking group in real time?

Most online trading platforms allow you to follow news from large companies like Booking live and in real time. But you can also consult the major events and other official publications of the group directly from its website in the investors section.

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