Priceline Group CEO Sees Changing Consumer Search Behavior on Alternative Accommodations


Skift Take

Metasearch sites such as Kayak, Hipmunk, Trivago, TripAdvisor and Tripping have a lot of heavy lifting to do because consumers will increasingly be demanding better ways to comparison-shop for alternative accommodations that are often unique and difficult to define. All things being equal -- and they aren't -- that's a big market opportunity for these sites.

Consumers searching online for flights and hotels frequently are extremely focused on price and when a company charges a fee that's its competitors don't require that can turn into a major determining factor in their selections. Such was the case in the 2007 to 2009 period when Priceline.com led the trend and eliminated consumer booking fees on flights, and Expedia followed a couple of years later. The fees were only a few dollars, around $5 to $6 for domestic flights and $10 or more for international trips, but both Priceline and Expedia made market share gains when Travelocity and others stubbornly hung onto their fees. Priceline Group's interim CEO, Jeffery Boyd, thinks a similar dynamic may be under way