SWOT Analysis of Expedia

adam August 20, 2017 Information Technology No Comments

Expedia is an online travel company offering all kinds of offers related to travel including flights, lodging, and travel packages. It is linked to various travel companies and airlines and sells their offers on their website.
The SWOT analysis of Expedia identifies the strengths, weaknesses, opportunities and threats that the company has.

Strengths

• Expedia is an online platform that offers wide range of hospitality services catering with all the hospitality needs of the buyers on the same website.

• The portfolio is very developed in terms of collaborations with airlines and hotels.

• Expedia has been very active in terms of acquisitions and mergers, including acquiring Travelocity and HomeAway which has enabled them to deliver the best traveling experience to their buyers (Jeffrey Dastin, 2015).

• Over the years, Expedia has developed its brand name and gained the loyalty of their customers through their exceptional service.

• Expedia is present in almost 60 countries and this global presence is one of its strength.

Weaknesses

• Expedia is dependent upon airlines, hotels and other travel agents which give a high bargaining power to suppliers.

• Intense competition is faced by Expedia because of high number of competitors available in the market.

• Their reputation and customer loyalty is highly dependent on the suppliers making them vulnerable to damages and claims.

• Due to increasing competition in the market, Expedia faces high pressure in terms of gaining the market share.

• Offering too many services can make their platform a bit confusing for customers who are just looking for one of the service.

Opportunities

• Partnerships have been going well for Expedia so it can further look into more acquisitions so that the business keeps growing.

• Invest more into mobile technologies and Apps so that the bookings are made more convenient for buyers.

• Penetration into more international markets so that the reach is increased.

• Catering to business travels by individually targeting companies for their yearly business trips.

• Introducing more exclusive membership for regular travelers so that it is easy for them to find deals.

Threats

• Existing competitors pose a major threat to the business of Expedia and this threat is multiplied with the addition of new entrants into the hospitality markets. Companies like Airbnb, and Booking.com offer differentiated services which makes them more credible as compared to Expedia.

• Many hotels and airlines have started offering deals so that the customers book with them directly and these efforts pose a threat to the operations of Expedia.

• Fluctuating global economic conditions can affect the business of Expedia.

• The uncertain conditions throughout the world is going to affect the air capacity and thus travels of the people, this will highly affect the business of Expedia.

• Suppliers are beginning to sell through their own means considering the cost required to sell through Expedia, this gives an edge and high bargaining power to suppliers.

References

R. (2015, November 5). Expedia to Buy Airbnb Competitor HomeAway in $3.9 Billion Deal. Retrieved July 31, 2017, from https://www.entrepreneur.com/article/252534
R. (2015, January 23). Expedia Acquires Travelocity in $280 Million Deal. Retrieved July 31, 2017, from https://www.entrepreneur.com/article/242157
Glusac, E. (2015, August 9). How Expedia Wants to Help Small Businesses Save on Travel Costs. Retrieved July 31, 2017, from https://www.entrepreneur.com/article/247964

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