Booking Holdings

Don't you just love those proverbial tuck-in acquisitions? Booking Holdings didn't break the bank for either HotelsCombined ($140 million) or FareHarbor ($250 million). Sometimes making smaller bets is a much smarter strategy than gargantuan deals, but only time will tell.

Some hotel groups will be jealous of Booking Holdings' ability to have one out of every two of its customers booking travel on its brand sites and apps without having to buy online ads to acquire them.

The online travel titan faces a reality check after years of extraordinary growth. Booking Holdings forecast that third-quarter growth in its accommodation room nights booked rate would be between 6 percent and 9 percent, well below the 20 percent range typical in the past.

Many online travel agencies are no longer specialists in one product, instead aiming to become one-stop shops. The platform that a booking site can offer is a key part of its competitive moat and the contours of supply at Booking Holding and Expedia vary widely from each other.

Much of the metasearch business is beyond the control of the metasearch companies themselves because their largest advertisers can switch things up five minutes ago. Just ask Trivago, and to a lesser extent, TripAdvisor. The best they can hope to do is to diversify their advertiser base and to keep plugging away.

Trivago and Booking.com have dramatically reduced their U.S. TV advertising. Trivago is doing so to try to stem losses, and Booking.com, which last year indicated it would lean into TV advertising, may be trying to tighten control of some marketing costs.

Has the worm turned? Have Expedia and Booking.com found a way to trim the growth of their bloated advertising spend? That would not be great news for some advertising platforms, and would be a significant change in the way the largest players conduct their marketing operations.

A lot of Trivago's problems, including an advertising diss from Booking Holdings, are beyond the company's control so it is doing what it can, namely reducing advertising spend and headcount in an attempt to get into the black. Speaking of Booking Holdings, Trivago may need a dot-com-like Priceline comeback to right the ship.

It's summer. Slow down. Take a breath. And catch up with some of Skift's best deep dives and enterprise stories so far in 2018.

When mergers go awry, it isn't always merely because the acquired company was a dog. Sometimes the purchaser likewise screws the whole thing up.