PCLN Overview

Founded in 1997 and headquartered in Norwalk, Connecticut, Priceline.com Incorporated (PCLN) operates as an online travel company that provides various travel services, including airline tickets, vacation packages, car rentals, hotel rooms, reservation services and cruises primarily in the United States, Asia and Europe.

For those looking to book a cruise, these actions transpire through World Travel Holdings, Inc., an agency representing the cruise-line industry. This service allows consumers in the U.S. to search and compare prices and availability information from 19 separate cruise lines and to purchase packages online or through a call center.

Priceline also offers destination services, which include tours, event tickets, parking, ground transfers and other services available at their travel destinations. Priceline also suggests travel insurance package that provide coverage for trip interruption, medical expenses, trip cancellation, and emergency evacuation, as well as insurance programs for the loss of property, travel documents and of course baggage,. The travel insurance is provided by member companies of American International Group, Inc. (AIG).

Priceline originated as the brainchild of venture capitalist Jesse Fink, who is now the founding partner of MissionPoint Capital and the president and CEO of Marshall Street Management. The company was also founded by Jay Walker, who handled the technology side of the company’s digital web design.

Within the U.S., Priceline offers its customers a choice that gives them the ability to purchase travel services in a traditional, price-disclosed manner or the opportunity to use its Name Your Own Price service. Through this service, customers are encouraged to make offers for travel services at discounted prices here within the U.S., or in all major cities and metropolitan areas of Europe.

The company offers its products and services within the U.S. under the company’s namesake, Priceline.com, as well as Booking.com, Active Hotels – now Booking.com Limited, Agoda.com, Lowestfare.com, Rentalcars.com, Breezenet.com, MyTravelGuide.com and Travelweb brands.

Hotels that participate in these services become affiliated by filing privately, secured, discounted rates within regulated stipulations into a global database system for distribution. Once in the database, these specific rates are normally not available to the public, consolidators or any other discount distributors. However, hotel participants may make similar rates available to consolidators or other discount providers under other unrelated arrangements.

In the international marketplace, Priceline offers retail, price-disclosed hotel services globally, primarily through the Booking.com and Agoda brands. Hotels that participate in Booking.com, which operates under an agency model, and Agoda, which operates under a merchant model, are a part of a network of over 60,000 chain-owned and independently owned hotels in 75 countries and in 27 languages, offering reservation services.

Booking.com, a subsidiary of Priceline, is Europe’s leading online hotel reservation agency attracting nearly 20 million visitors each month via the Internet. First established in 1996, Booking.com offers access to more than 57,000 hotels in 71 countries in 18 different languages, while recommending rates on numerous varieties of property types, ranging from small independent Bed & Breakfast to luxury five-star hotels.

Agoda.com specializes in providing consumers with the lowest hotel fares possible throughout the Asia Pacific markets. Operating in Bangkok and the Philippines, Agoda has a network of more than 8,000 hotels in Asia and roughly 49,000 hotels worldwide, while headquartered in Singapore.

The company also offers financial services through their Priceline Mortgage Company LLC, Pricelinemortgage.com. The service, which is controlled by EverBank, is a federally chartered savings association and is a wholly owned subsidiary of EverBank Financial Corporation.

Pricelinemortgage.com, which operates in all 50 states, has access to the management resources and expertise of EverBank, which provides management services to pricelinemortgage.com customers, including the procurement of personnel and office space and assistance in obtaining regulatory approvals.

Priceline.com currently competes with Expedia Inc. (EXPE), Orbitz Worldwide Inc. (OWW), Sabre Group, AOL (TWX), Yahoo! (YHOO), Mobissimo.com, FareChase.com, Kayak.com, TripAdvisor, Travelzoo, Cheapflights.com, Galileo, Travelport and Amadeus.

By BetterTrades