Booking Holdings SWOT and PESTLE Analysis

Strength

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Weakness

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Opportunity

1. Expansion through mergers & acquisitions in the online travel industry: Since the advent of the dot.com bubble, Booking Holdings has shown the one of most notably sluggish performances, which is not unexpected considering the magnitude of the operating businesses. To maintain its double-digit expansion, Booking Holdings has kept on expanding since the era when the company was known as the Priceline Group, like the acquisition of Booking.com in 2005 and many other rivals. Then, the company acquired Agoda in 2007 and kept on expanding by acquiring the online travel disruptors and fast-growing start-ups who gave steep competition to it. Although Booking Holdings never stopped its diversification strategy, the magnitude of the company’s acquisitions got smaller. Nevertheless, the CEO of the company believes in making investments in aggressive diversification like the acquisition of Venga that brings in CRM platform for the OpenTable operations with restaurants, as part of the overall strategy of the providing connected trip experience to the customers.

2. Investment in advanced technologies for providing connected trips: Booking Holdings has recognized the opportunity of providing the experience of connected trips to its customers. To achieve the intentions successfully, the company has invested in incorporating technologies in the value chain, such as bringing in the CRM platform in the OpenTable operations with restaurants by acquiring Venga. Moreover, the company’s CEO has talked about the fulfilment of goals like creating a holistic super-system by leveraging the customer data using visual AI capabilities. Also, Booking strives for developing payment capabilities by integrating brands to provide a seamless experience of connected trips. Some of the examples shared by the CEO in support of the connected trip concept included the OpenTable and Kayak, and Booking.com and Rentalcars integration.

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Threats

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. Initiatives taken for alignment of green practices in operational processes and at workplaces: With the digital landscape widening, all the internet operating companies are focusing on mitigation of environmental impacts by reducing carbon footprints through lower energy consumption and harmful emissions. With the belief to model environmental stewardship and responsibility at every turn in its business, Booking Holding has participated in multiple green initiatives. As of 2019, employees of two of its brands, KAYAK and OpenTable, founded the Global Green Team, as a part of Do Good combined CSR program. The team moves forward with the intentions of green practices alignment and lowering their carbon footprints at workplace. Also, the team put forward concerted efforts for reduction in energy consumption by turning off laptops and screens at the workday end. Among the other initiatives, an environmental analysis was conducted by Booking.com by measuring and calculating CO2 emissions, and creating a framework for reducing the brand reductions from its offices and business travel in the upcoming years.

2. Investments in sustainable tourism and other projects: As the awareness about enhancing sustainability in business approaches is spreading rapidly, all the online operating companies are coming up with innovative ideas to support sustainable tourism and travel. As of 2019, a new CSR team was inaugurated by Agoda to work towards promoting sustainable travel and corporate volunteering. In addition to this, Booking.com and Agoda started participating in the Global Sustainable Tourism Council (GSTC) for establishing and managing standards for global sustainable tourism. Booking.com and Agoda, as members of the global network of GSTC, are contributing towards protection and sustainability of the natural and cultural resources by widespread adoption of universal sustainable tourism principles. Moreover, the employees and experts of Booking.com are leading a three-week accelerator program consisting of lecture series, hands-on workshops and coaching sessions for supporting innovation by the ready-to-scale sustainable tourism start-ups.