Morningstar Rating

Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

With a well-established supplier network spanning hotels, air travel, tour packages, car rental, and other services, Expedia will continue to benefit from the shift to online travel bookings.
Expedia is aggressively targeting to expand travel inventory in Europe and Asia Pacific markets where online travel is gaining popularity, but adoption rates are lower than in the U.S.
The Trivago acquisition in Europe should help Expedia gain better access to travel-related traffic on the Continent and participate more in the travel media advertising market. Read more 

Bears Say

The U.S. online travel market, which accounts for 53% of Expedia's gross bookings, is experiencing moderate growth, relative to the more attractive international market.
Expedia has been outpaced by Priceline in the international markets. International bookings at Expedia have grown 30% annually since 2007, compared with 53% at Priceline.
Search engines, metasearch, social media, and daily deals sites all pose threats to Expedia's competitive position. Read more 

Management

We view Expedia's stewardship of shareholder capital as exemplary. CEO and board director Dara Khosrowshahi has been at the helm since Expedia was spun off from InterActiveCorp in 2005, and has been instrumental in executing the platform upgrade across   Read more 

Profile

Expedia is the largest online travel company in the world, with over $39 billion in annual gross bookings, and a supply portfolio consisting of over 200,000 hotels and 300   Read more 

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