Expedia (EXPE) Unveils One Key, Offers Rewards to Travelers
Expedia Group EXPE has launched a loyalty program called One Key in a bid to deliver an enhanced travel booking experience.
Notably, the program brings the company’s three flagship brands namely Expedia, Hotels.com, and Vrbo under a single platform.
Further, it rewards every customer, which they can use across these three brands to avail various services, including online vacation rental booking, flight booking and hotel booking among others.
More precisely, these rewards can be used on selected flights, hotels, vacation rentals, car rentals, cruises and other activities.
With higher membership tiers of One Key, customers will be eligible for deeper discounts and in-stay perks at VIP Access properties.
Further, the program offers a single rewards currency called OneKeyCash that can be earned while traveling.
Currently, One Key is available in the United States. It will be launched globally at the beginning of next year.
We believe Expedia's latest move will boost customer engagement on its platform and accelerate bookings in the days ahead.
The Zacks Consensus for 2023 gross bookings is pegged at $109.12 billion, implying 14.8% growth from 2022.
Expedia Group, Inc. Price and Consensus
Expedia Group, Inc. price-consensus-chart | Expedia Group, Inc. Quote
Portfolio Strength
The latest move is in sync with the company’s growing efforts toward strengthening its portfolio offerings.
Recently, Expedia introduced SoFi Travel in collaboration with SoFi Technologies, to deliver an enhanced travel experience to members.
Additionally, Expedia launched Shoppable, a streaming platform that combines travel-related content with booking options. Using this platform, the company joined forces with Brand USA to create a channel for their content to be “shopped” called GoUSA. This allows users to watch and book content simultaneously, enabling Brand USA to track and measure its impact on booking decisions.
Expedia also introduced a ChatGPT-powered in-app travel planning experience in collaboration with OpenAI. The new experience enables open-ended conversation for Expedia members and aids them in planning an organized and cost-efficient trip.
Users can seamlessly check the availability of hotels and flights on the back of an easy conversation through the new experience. Further, they can add a car or cab facility to the trip.
Growth Prospect
Expedia’s strengthening portfolio is expected to continue boosting its presence in the booming online travel booking market.
Per a report from Grand View Research, the global online travel booking market is expected to witness a CAGR of 9% between 2022 and 2030.
According to an Allied Market Research report, the market is likely to reach $1.8 trillion by 2031, registering a CAGR of 14.8% between 2022 and 2031.
We believe the company’s growing prospects in this promising market are expected to aid it in winning investors’ confidence and boost its financial performance.
For 2023, Expedia expects double-digit top-line growth.
The Zacks Consensus Estimate for the same is pegged at $12.89 billion, indicating growth of 10.5% from the 2022 reported figure.
The consensus mark for 2023 earnings is pegged $9.22 per share, indicating year-over-year growth of 35.8%. The figure has moved north by 0.4% over the past 30 days.
EXPE shares have gained 16.6% in the year-to-date period, outperforming the Zacks Retail-Wholesale sector’s return of 9.7%
Expedia’s diversified business approach and stable demand patterns in certain markets remain positives.
Zacks Rank & Stocks to Consider
Currently, Expedia carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Retail-Wholesale sector are BJ’s Restaurant BJRI, Pinduoduo PDD and Asbury Automotive Group ABG. BJ’s Restaurant and Pinduoduo Inc. sport a Zacks Rank #1 (Strong Buy) each, while Asbury Automotive Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Restaurant shares have gained 30.2% in the year-to-date period. The long-term earnings growth rate for BJRI is currently projected at 15%.
Pinduoduo shares have lost 3% in the year-to-date period. The long-term earnings growth rate for PDD is currently projected at 19.59%.
Asbury Automotive Group shares have gained 36.3% in the year-to-date period. The long-term earnings growth rate for ABG is currently projected at 18.52%.
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