Expedia SWOT and PESTLE Analysis

ID : 52655053| Feb 2023| 14 pages

COMPANY PROFILE -Expedia

Business Sector :Travel & Tourism

Operating Geography :United States, Global

About Expedia :

Headquartered in Seattle, Washington, US, Expedia Group, Inc is one of the most prominent travel companies of the world, operating on online platforms. This company was founded in 1996 and, since then has undergone quite a number of diversifications, internationalizations and strategic alliances to gain a widespread coverage throughout the world. With the help of a multi-brand and consumer-centric strategy, this 24-year old company has achieved milestones with the world’s broadest supply portfolio in over 200 countries and territories. Expedia has been honored with many awards and accolades for its dedication towards innovation, its people and community work. Recently, the company received the Gold 2019 UserTesting Illumi Award for its innovative spirit and providing excellent customer experience. As of 2020, due to poor financial performance, the company announced trimming down of 3000 jobs.
Expedia group administers its travel products and services via its three principal business models namely,
• the merchant model- focuses on booking of hotel rooms, alternative accommodations, airline seats, car rentals, and destination services
• the agency model- facilitates travel bookings on a commission basis as a transaction agent
• the advertising model- provides a potential source of incremental traffic and transactions to travel and non-travel advertisers through its transaction-based websites and meta-search sites(Trivago) With the unique value proposition of providing its customers – the travelers and the travel service providers with endless number of opportunities and products, and therefore with the best possible customer experience. Expedia strives to fulfill its commitment to its customers and position itself as the world’s largest and most diversified platform with its mission: “Our purpose is to bring the world within reach” and vision statement: “To be locally relevant on a global basis, be customer-centric, attract and engage the world of travel suppliers, power other industry partners, continuously improve our platform with data and tech, and be the place where exceptional people who share our passion for tech and travel want to do their best work.”
As of 2020, Expedia Group is the largest travel company in the world based on its sales, clearly its USP or Unique selling proposition sprawls in being the leader in the travel industry that is worth 1.6 trillion dollars.

Expedia Revenue :

US$ 11,223 million – FY ending 31st December 2019
US$ 10,532 million – FY ending 31st December 2018

Competitive Analysis of Expedia

SWOT

PESTLE

Expedia Group, Inc. is an online travel company and one of the world's largest full-service travel brands, as of 2020. Under the parasol of its large portfolio of brands, Expedia Group strives at providing the most comprehensive range of holiday destinations, affordable airfares, hotel deals, car rentals, cruise deals, in-destination pursuits, and other travel services.
Expedia Group's core competency is its large and diversified brand portfolio that has a wide global extent, targeting a broad range of business and leisure travelers. Expedia's multi-brand strategy is a source of competitive advantage as it allows the company to target different types of consumers and travel needs, employ different business models, and address diverse markets. Thus, SWOT is a simple tool to analyze more such business and market strategies rolled out by the company in order to attain a competitive advantage over its peers. Moreover, the SWOT analysis is essential to identify the strengths and opportunities that Expedia can leverage to promote growth and profitability. The analysis also presents information on the weaknesses and threats to the company that can limit its growth and market share.
Besides a significant brand portfolio, Expedia's business strategic factors like enhanced product offerings, global accessibility, acquisitions and mergers, technology and product innovation, sustained penetration into emerging channels such as mobile applications, multi-product travel options customized for both budget travelers and high-end luxury travelers, etc. are primary growth drivers and some of the biggest strengths of the company.
One of the key weaknesses of the Expedia Group is its high dependency on suppliers, partner airlines, hotels, and other service providers. As the brand reputation and customer loyalty wholly depend on the services offered by these travel partners.
Nevertheless, to seek growth opportunities the company strategizes itself and focuses mainly on global expansion, product innovation and channel expansion. To achieve the same, Expedia is making significant investments in technology, enhancing operations, focusing on brand building, improving supplier relationships, innovating mobile websites, and apps. These opportunities in the long-run could be beneficial for Expedia to take on competitors head-on and increase market share.
The SWOT Analysis for Expedia is presented below in a nutshell followed by detailed analysis:

Strengths	Weaknesses
1. Global service coverage through diverse brand portfolio 2. Advanced technologies and innovation through strong R&D 3. World’s largest diversified travel platform 4. Loyalty programs driving customer retention and creating competitive differentiation	1. Lack of proper coordination between the senior management, employees and the board of directors 2. Current cost structure signifies multiple redundancies 3. Complexity of the Expedia Group business creating redundancies and inefficiencies
Opportunities	Threats
1. Expedia-Marriott agreement on global distribution of the latter’s wholesale rates 2. Increasing shift towards digital travel bookings 3. Shifting to cloud services for proper data management	1. Fierce competition from other players in the industry and from search engines such as Google 2. Decrease in demand due to fear of cybercrimes like the Expedia-Orbitz hack 3. Restrictions on travel due to Covid-19 pandemic

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Detailed SWOT Analysis of Expedia

Strength

1. Global service coverage through diverse brand portfolio:Owing to diverse portfolio of brands that Expedia owns, the company is able to target the widest segment of customers including travellers, travel suppliers and advertising agencies. The company accommodates multiple brands like Brand Expedia, Hotels.com, Expedia Partner Solutions, Trivago, etc., in its portfolio. Some of the brands like Egencia operate both through domestic and international channels. Expedia has left its footprints all over the world, including Australia, Asia Pacific, America, Canada and Europe. In addition, the company has also formed strategic partnerships with firms from China. These expansions have helped Expedia gain wider coverage and more access to its potential customers.

2. Advanced technologies and innovation through strong R&D: Technology and innovation is considered as one of the strongest touchpoints for Expedia. With the help of real-time eye and emotions tracking techniques and technologies, the human research team at Expedia’s Innovation Lab has been able to track down the real time preferences of the customers that can be fulfilled. The level of creativity associated with understanding the pain points of the customers coupled with ideas for design and content of the online platforms also increases by engaging these technologies. In contrast to the standardized nature of the outcomes that would have resulted from machine learning, the differentiated services that the human research team could come up with, would give Expedia a competitive advantage over the competitors.

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Weakness

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Opportunity

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Threat

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The travel and tourism industry are one of the most deeply affected industries due to the COVID-19 outbreak. Economic crisis, Strict rules for social distancing, Restriction on National and international movements via Flights, Cruise ships, and public transports, temporary closure of Hotels, malls, restaurants, amusement parks, etc. are all the macroeconomic and social factors highly influencing the business and operations of mainly Expedia and the entire travel and tourism industry. Thus, the PESTLE tool is handy to study more such market trends, features, and influencers that impact the Travel and tourism industry and extensively Expedia Group. The PESTLE / STEEPL / PEST analysis report is a structure to examine the consequence of external factors particularly political, economic, social, technological, legal, and environmental on the macro-environment that influences the business operations of Expedia. The PESTLE analysis is also a useful technique to study the impact of these macro factors on Expedia's business models, its business case, growth, and market strategy.
Technological innovations and advancements extend new opportunities for travel bookings. Mobile bookings are often completed with a much shorter booking window in comparison to regular online booking processes. Clearly mobile bookings have become a necessity of the current frenetic lifestyle in order to save time. To out-stand the competition and hold on to its existing competitive stance, the Expedia group continues to build, a broad and deep supply portfolio and invest heavily in technological innovations. Consequently, Expedia's brands are executing new technologies like voice-based search, chatbots, and messaging apps as mobile-based options for travelers.
Expedia encounters political and economic uncertainties due to external factors like geopolitical instability, uncertainties due to Brexit, travel restrictions due to outbreak of pandemics like COVID-19, steep drop in oil prices, changes in visa and immigration policies, etc.
Besides, being an online platform Expedia is highly influenced by legal factors like protection of intellectual property rights that include patents, trademarks, copyright, domain names, trade dress, proprietary technology, and trade secrets.
As predicted by the company, travel restrictions due to the COVID-19 outbreak has and will continue to negatively impact the financial results of Expedia Group even beyond the first quarter of 2020. However, amid these hard times, one of Expedia's brand Egencia on 6th May 2020, announced the Helping Healthcare travel program that shoulders the social responsibility of helping frontline healthcare workers access discounted hotel rooms for self-isolation or COVID relief travel.
The PESTLE / STEEPL / PEST analysis for Expedia is presented below in a table followed by the detailed analysis report.

Political	Economical
1. Impact of political sanctions such as restriction on Cuba 2. Impact of US-China trade war on the tourism industry	1. Impact of global economic slowdown and recession due to Covid-19 on travel and tourism industry 2. Impact of cyclical factors on travel and tourism
Social	Technological
1. Increase in percentage of working population with access to online facilities 2. Increased consumer spending on desirable experiences	1. Advent of technological trends in this industry like using AI and automation 2. Technological investments by the offline travel and hospitality industry
Legal	Environmental
1. Changes in the package travel regulations or new regulations enforced by the governments 2. Impact of EU Competition Law on the online travel and tourism industry	1. Sustainable tourism initiative in collaboration with global organizations 2. Impact of measures taken against climate change and global warming

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Detailed Pestle Analysis of Expedia

Political

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Economic

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Social

1. Increase in percentage of working population with access to online facilities: The advent of digitalization inspires every organization aims to provide more convenient customer experience to the population. Considering the projection for online travel booking, expected to reach a projection of USD 817 billion by 2020 and the fact that 82% of the overall travel bookings were done using online medium in 2018, it can be easily inferred that improved access to internet services will swell the number of online users. Currently, 59% of the world’s population are active internet users. Considering majority of Expedia’s customers belongs to the working class, increment in active internet users in the employed population will lead to an increase in the number of bookings done online.

2. Increased consumer spending on desirable experiences: With economic growth, consumer confidence is set to increase. Leisure choices of consumers are increasingly being shaped by nostalgic experiences and building on a personal note. According to a report published by WEF, even though people are willing to spend on material things, there is strong desire for experiential pleasures. 78% of millennials, across age brackets and socioeconomic classes come under the umbrella of this trend. FY2020 is set to a recessionary year for the travel industry in wake of the Covid-19 pandemic and global slowdown. However, the economy is expected to rebound post the crisis as in 2008 and consumer confidence, coupled with increasing disposable income, will drive travel spending increasing business potential and opportunities for Expedia.

Technological

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Legal

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Environmental

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Major Competitors :

Airbnb
Sabre
TripAdvisor
Booking.com
Trip.com Group

Major Brands :

Brand Expedia
Expedia Partner solutions
Hotels.com
Vrbo
Egencia
Trivago
Homeaway
Orbitz
Travelocity
Hotwire
Wotif
ebookers
Cheap Tickets
Expedia Group Media Solutions
Expedia Local Expert
CarRentals.com
Expedia Local Export
ExpediaCruiseshipCentres
Classic Vacations
Traveldoo
VacationRentals.com
SilverRail

Sample Complete Report

This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
Complete Report
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On purchase the Expedia SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.

WHY BUY THIS REPORT?

DELIVERY AND FORMAT

WHY CHOOSE US?

1. The SWOT and PESTLE analysis report offers a quick glimpse into the internal and external factors concisely in a matrix format, followed by a detailed analysis
2. The SWOT analysis of Expedia Group highlights how the company strategizes itself to build on its Strengths, eliminate weaknesses by endeavouring external opportunities, and eradicating threats.
3. The Report covers compelling initiatives that were taken by Expedia, to stay ahead of its competitors and adversaries and attain a competitive advantage
4. The in-depth analysis of all external factors namely, political, economic, social, technological, legal and environmental is covered under the PESTLE/ PESTEL/ STEEPL Analysis report, that also comprehends the impact of other influencers and current trends on the Travel and tourism industry and specifically on Expedia Group
5. The report provides holistic information on Expedia's milestones and the synergies that were achieved by various factors like mergers and acquisitions, strategic partnerships and alliances, capital raising, market value, market segmentation, and equity transactions
6. Penetrate into Expedia’s business diversification, studies its key business segments and elaborates upon its business case study
7. Gain knowledge about company information, company profile, business model, business plans and marketing strategy via comprehensive company analysis of Expedia Group
8. Evaluation of Expedia’s USP or unique selling proposition, mission statement, and vision statement
9. Synopsis of Expedia's business model, business case study along with a peek into the company’s key performance indicators, value proposition, and success factors.

You may also be interested in other analyses of Expedia:

Expedia Porter's Five Forces Analysis
Expedia VRIO Analysis
Expedia Value Chain Analysis
Expedia Covid-19 Impact Analysis
Expedia BCG Analysis
Expedia Segmentation, Targeting and Positioning (STP) Analysis
Expedia Ansoff Matrix Analysis

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Expedia SWOT and PESTLE Analysis

COMPANY PROFILE -Expedia

Business Sector :Travel & Tourism

Operating Geography :United States, Global

About Expedia :

Expedia Revenue :

Competitive Analysis of Expedia

Detailed SWOT Analysis of Expedia

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Expedia

Political

Economic

Social

Technological

Legal

Environmental

Major Competitors :

Major Brands :

WHY BUY THIS REPORT?

TABLE OF CONTENTS

DELIVERY AND FORMAT

WHY CHOOSE US?

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