International bookings accounted for about 61 percent according to last years report. Most of its international business is in Europe.
Priceline European consumers are on hold . The company is exposed to to Europe big time. Travel for whatever reason, has to be impaired.
With 2.6 trillion Euro debt for Italy, 2.1 trillion for Greece, pcln European Exposure is glaring.
Three-quarters of its operating profit is coming from outside the U.S., mostly from Europe, Priceline has a problem, as it converts euro-denominated sales back to dollars a slumping dollar is good , if the dollar rallies earnings will tally lower.
Cancellations in Europe are expected to increase as travelers wait for the uncertainty surrounding the travel environment to subside.
Forrester Research Inc., has said that Priceline’s business model helps the company during economic declines. That’s because the name-your-own-price option...appeals to thrifty travelers as well as hotels that need to book empty rooms. Problem is if people don't get the price they're willing to pay they don't book, period. A Achilles heel of the model.
As the “negotiator,” Shatner like to say “go lower” but how low can this go ?
We’re still in the early stages of this mess as the EU may have additional surprises which could send the dollar higher . Greece's adoption of their peers package, are on hold so add that to your Queue!