The Thesis
Booking.com (BKNG) is the best executor in online travel. While Airbnb owns "Home Shares," Booking owns "Hotels," specifically in Europe.
The thesis is Efficiency. Booking spends billions on Google Ads, but they convert that traffic better than anyone else. They are a "Performance Marketing Machine" that extracts a toll (15-20% commission) on global travel.
Product Deep Dive: The Connected Trip
1. Booking.com
- The Product: The world's largest hotel engine.
- The Moat: European Fragmentation. In the US, big chains (Marriott/Hilton) dominate. In Europe, small boutique hotels dominate. These small hotels need Booking.com to find customers. Booking has the inventory no one else has.
- Genius Loyalty Program: Instant discounts for tiered members. Simple and effective.
2. Agoda & Priceline
- The Assets: Agoda dominates Asia. Priceline serves the US discount market.
- The Strategy: Geographic diversification.
3. The "Connected Trip" (Fintech)
- The Vision: Booking your Flight + Hotel + Taxi + Tickets in one cart.
- Merchant Model: Booking is handling more payments directly (Merchant of Record), allowing them to bundle these items and capture more share of wallet.
The Business Model
- Agency vs. Merchant: Historically an "Agency" (pay at hotel). Moving to "Merchant" (pay now). This improves cash flow and allows for bundling.