In a new report, Cowen & Co analyst Kevin Kopelman discusses two topics of contention among online travel investors headed into Q3 earnings season. He also highlights Cowen’s top stock picks in the space ahead of earnings.
The Airbnb Impact
The popularity of Airbnb has taken off in recent years, and the level of disruption that the company will have on other online travel companies remains a contentious topic. Cowen estimates that Airbnb will generate $7.5 billion in bookings and nearly $1 billion in revenue in fiscal 2015. While the $7.5 billion in bookings is twice what Cowen estimates the company logged in 2014, it is still well short of the $51 billion in bookings estimated for Priceline Group and the $23 billion in bookings estimated for Expedia Inc EXPE 9.26%.
“While concentrated impact is being felt in a number of large urban markets like Paris and NYC, we note to date Airbnb has only taken an est. 2% of the market from the hotel industry,” Kopelman explained. He adds that, if Airbnb reaches its growth targets, it could become a threat to the hotel industry by 2018.
Priceline Joins TripAdvisor Instant Book
While some see Priceline’s decision to adopt TripAdvisor’s Instant Book as a puzzling move on Priceline’s part, Kopelman sees…
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