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Expedia Group (EXPE) Aids Travelers With One Key Credit Cards
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Expedia Group (EXPE - Free Report) is leaving no stone unturned to strengthen its portfolio offerings on the back of expanding partnerships.
Recently, the company partnered with Wells Fargo (WFC - Free Report) and Mastercard (MA - Free Report) to launch two co-branded credit cards, namely One Key and One Key+.
The cards are designed to offer more flexibility for U.S. travelers. It offers rewards such as OneKeyCash, which can be used across Expedia, Hotels.com, and Vrbo to book hotels, vacation rentals, car rentals, activities and flights.
Cardholders can also earn OneKeyCash rewards and automatically upgrade to the One Key Silver tier and One Key Gold tier, unlocking savings of 15% and 20% on over 10,000 hotels worldwide.
Expedia Group is expected to gain solid popularity among U.S. travelers on the back of this latest partnership.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Partnerships to Aid Prospects
Per a Statista report, the global travel and tourism market is expected to hit $927.3 billion in 2024 and reach $1.06 trillion by 2028, indicating a CAGR of 3.5% during the forecast period of 2024-2028.
An MMR report indicated the online travel booking market is likely to reach $1.18 trillion by 2030, witnessing a CAGR of 9.7% between 2024 and 2030.
Expedia Group remains well-poised to capitalize on these solid growth opportunities on the back of its expanding partnerships.
In addition to the Wells Fargo-Mastercard partnership, Expedia collaborated with Cathay to integrate its White Label Template technology into Cathay’s newly launched Cathay Holidays travel hub to expedite and customize travel booking and trip planning experiences of customers.
The company collaborated with Tourism and Events Queensland, Tourism Tropical North Queensland, Tourism Northern Territory and Brisbane Economic Development Agency to enhance travelers’ experiences, improve sustainable tourism and showcase Australia’s unique culture.
Expedia Group also partnered with Ikyu, a Japanese luxury hotel booking service, offering its customers over 20,000 additional properties worldwide and enabling them to earn points for future bookings using EXPE’s Rapid API solutions.
Intensifying Competition
However, intensifying competition in the travel and tourism space from major players like TripAdvisor, Airbnb, and Booking Holdings (BKNG - Free Report) remains a risk for this Zacks Rank #3 (Hold) company. Expedia Group’s shares have lost 13.2% on a year-to-date basis, underperforming the industry’s 21.5% growth. Its shares have also underperformed Airbnb and Booking Holdings’ gain of 7.8% and 14.1%, respectively, in the year-to-date period. However, TripAdvisor’s shares have lost 17% in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, TripAdvisor’s subsidiary Viator partnered with Amazon to integrate 300,000+ tours, activities, and excursions into Amazon's Alexa Smart Properties for Hospitality offerings. This allows guests to explore local travel experiences from their hotel rooms using voice and touch interactions.
Meanwhile, Airbnb unveiled a few updates for group booking, including a new category called "Icons" hosted by celebrated personalities in music, film, TV and sports. These features will allow users to create shared wishlists, invite friends or family, add properties, leave notes or vote on bookings.
Booking Holdings’ subsidiary, KAYAK, unveiled an upgrade to its travel management solution for small and medium-sized businesses (SMBs). KAYAK for Business now offers full trip management, seamless group bookings and 24/7 travel agent support at a flat fee of $20 per trip.
Conclusion
Despite stiff competition, Expedia is benefiting from strong momentum across Brand Expedia, its expanding global lodging portfolio and strength in its advertising businesses.
Moreover, the company’s initiative to infuse generative AI technology into its services is expected to drive customer momentum in the upcoming period.
These factors are expected to continue driving the overall financial performance of the company in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $13.77 billion, indicating year-over-year growth of 7.3%.
The consensus mark for 2024 earnings is pegged at $11.87 per share, indicating a 22.5% rise from the year-ago figure. The figure has remained unchanged in the past 60 days.
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Expedia Group (EXPE) Aids Travelers With One Key Credit Cards
Expedia Group (EXPE - Free Report) is leaving no stone unturned to strengthen its portfolio offerings on the back of expanding partnerships.
Recently, the company partnered with Wells Fargo (WFC - Free Report) and Mastercard (MA - Free Report) to launch two co-branded credit cards, namely One Key and One Key+.
The cards are designed to offer more flexibility for U.S. travelers. It offers rewards such as OneKeyCash, which can be used across Expedia, Hotels.com, and Vrbo to book hotels, vacation rentals, car rentals, activities and flights.
Cardholders can also earn OneKeyCash rewards and automatically upgrade to the One Key Silver tier and One Key Gold tier, unlocking savings of 15% and 20% on over 10,000 hotels worldwide.
Expedia Group is expected to gain solid popularity among U.S. travelers on the back of this latest partnership.
Year-to-Date Performance
Image Source: Zacks Investment Research
Expanding Partnerships to Aid Prospects
Per a Statista report, the global travel and tourism market is expected to hit $927.3 billion in 2024 and reach $1.06 trillion by 2028, indicating a CAGR of 3.5% during the forecast period of 2024-2028.
An MMR report indicated the online travel booking market is likely to reach $1.18 trillion by 2030, witnessing a CAGR of 9.7% between 2024 and 2030.
Expedia Group remains well-poised to capitalize on these solid growth opportunities on the back of its expanding partnerships.
In addition to the Wells Fargo-Mastercard partnership, Expedia collaborated with Cathay to integrate its White Label Template technology into Cathay’s newly launched Cathay Holidays travel hub to expedite and customize travel booking and trip planning experiences of customers.
The company collaborated with Tourism and Events Queensland, Tourism Tropical North Queensland, Tourism Northern Territory and Brisbane Economic Development Agency to enhance travelers’ experiences, improve sustainable tourism and showcase Australia’s unique culture.
Expedia Group also partnered with Ikyu, a Japanese luxury hotel booking service, offering its customers over 20,000 additional properties worldwide and enabling them to earn points for future bookings using EXPE’s Rapid API solutions.
Intensifying Competition
However, intensifying competition in the travel and tourism space from major players like TripAdvisor, Airbnb, and Booking Holdings (BKNG - Free Report) remains a risk for this Zacks Rank #3 (Hold) company. Expedia Group’s shares have lost 13.2% on a year-to-date basis, underperforming the industry’s 21.5% growth. Its shares have also underperformed Airbnb and Booking Holdings’ gain of 7.8% and 14.1%, respectively, in the year-to-date period. However, TripAdvisor’s shares have lost 17% in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recently, TripAdvisor’s subsidiary Viator partnered with Amazon to integrate 300,000+ tours, activities, and excursions into Amazon's Alexa Smart Properties for Hospitality offerings. This allows guests to explore local travel experiences from their hotel rooms using voice and touch interactions.
Meanwhile, Airbnb unveiled a few updates for group booking, including a new category called "Icons" hosted by celebrated personalities in music, film, TV and sports. These features will allow users to create shared wishlists, invite friends or family, add properties, leave notes or vote on bookings.
Booking Holdings’ subsidiary, KAYAK, unveiled an upgrade to its travel management solution for small and medium-sized businesses (SMBs). KAYAK for Business now offers full trip management, seamless group bookings and 24/7 travel agent support at a flat fee of $20 per trip.
Conclusion
Despite stiff competition, Expedia is benefiting from strong momentum across Brand Expedia, its expanding global lodging portfolio and strength in its advertising businesses.
Moreover, the company’s initiative to infuse generative AI technology into its services is expected to drive customer momentum in the upcoming period.
These factors are expected to continue driving the overall financial performance of the company in the near term.
The Zacks Consensus Estimate for 2024 total revenues stands at $13.77 billion, indicating year-over-year growth of 7.3%.
The consensus mark for 2024 earnings is pegged at $11.87 per share, indicating a 22.5% rise from the year-ago figure. The figure has remained unchanged in the past 60 days.