The change of leadership to Barry Diller following the $634 million buyback is positive news. Diller knows the company inside and out, having spent 20+ years as Expedia Chairman. Expedia will undergo operational efficiency improvements under the new leadership to achieve a $300 million to $500 million incremental cost savings. Integration of brands and shift from SEM to direct traffic marketing as the company reduces its dependency on Google will also drive margin expansion and double-digit growth in EBITDA.
The recent short-term pressures due to management shakeup, SEO disruption, political turbulence in HK, and Coronavirus have created an excellent entry point. Booking (BKNG) and Expedia (EXPE) remain the only two OTA players with the scale and capacity to get the most out of the $1.9 trillion global travel market opportunity. Read the rest of our original research on Seeking Alpha.
The recent short-term pressures due to management shakeup, SEO disruption, political turbulence in HK, and Coronavirus have created an excellent entry point. Booking (BKNG) and Expedia (EXPE) remain the only two OTA players with the scale and capacity to get the most out of the $1.9 trillion global travel market opportunity. Read the rest of our original research on Seeking Alpha.
