The State of Online Travel Agencies - 2019

Full year 2018 results and key takeaways for 10 publicly traded online travel companies: Booking, Expedia, Ctrip, eDreams Odigeo, Despegar, On The Beach, Lastminute, MakeMyTrip, TripAdvisor, Trivago

  • MakeMyTrip: With large and increasingly negative losses MakeMyTrip has never shown a profit and shows a worrying EBITDA/Revenue margin of negative 20%. This together with 20% negative revenue growth place MakeMyTrip as the worst performer in the group and in a different category by itself.
  • Trivago: Trivago’s EBITDA/Revenue margin of close to 1% is an order of magnitude below its peers. Again, with a fall in revenue of 11% last year, this puts Trivago in the far from stellar category.
  • Although Ctrip has shown stellar revenue and EBITDA growth over the period, its EBITDA/Revenue margin of 10% is the worst after MakeMyTrip and Trivago, and it is also the only company in the group (apart from MakeMyTrip) which has posted a year of negative EBITDA in the period studied.

1. 2018 Results

1.1. Revenues

Note: eDreams and MakeMyTrip fiscal year ends March of the following year. eDreams and MakeMyTrip data shown for 2017 and 2018 is calendar year (adding the 4 calendar year quarters). On The Beach fiscal year ends in September. eDreams: All data comes from companies’ financial statements.
2013–2018 CAGR except for the following; CAGR for Ctrip is for 2014–2018 period. For Trivago and Lastminute is for 2015–2018. For Despegar and OnTheBeach is for 2016–2018 period. Ctrip, growth rates are based on local currency in order to remove foreign currency fluctuations. All euro and pound based OTAs are also in their local currency.
Revenue share of the total revenue of the 8 Online Travel Agencies (Booking, Expedia, Ctrip, eDreams, Lastminute, Despegar, MakeMyTrip, OnTheBeach). For those OTAs that report in foreign currency, I have converted their yearly revenue at the average conversion rate for each of the years

1.2. EBITDA and Enterprise Value

Note: eDreams and MakeMyTrip fiscal year ends March of the following year. eDreams and MakeMyTrip data shown for 2017 and 2018 is calendar year (adding the 4 calendar year quarters). On The Beach fiscal year ends in September. eDreams adjusted EBITDA. Lastminute core business EBITDA. All data comes from companies’ financial statements.
EBITDA Margin. Source: Companies’ financial statements
EBITDA is calendar year 2018. Enterprise Value is taken from Yahoo Finance.
https://www.macrotrends.net/stocks/charts/MMYT/makemytrip/ebitda

1.3. Marketing

eDreams and MakeMyTrip fiscal year ends March of the following year. eDreams and MakeMyTrip data shown for 2017 and 2018 is calendar year (adding the 4 calendar year quarters). On The Beach fiscal year ends in September. Ctrip growth rates are based on local currency in order to remove currency rate impact. eDreams variable costs. Booking: Performance + Brand. Trivago: Advertising expenses

2. Key Takeaways

2.1. Booking Holdings

Source: Booking Holdings 2018 annual report
Source: Booking Holdings 2018 annual report
Source: Booking Holdings 2018 annual report

2.2. Expedia Group

Expedia Group, Revenue by Segment. Source: Expedia 2018 Annual Results
Expedia Group, Revenue by business model. Source: Expedia 2018 Annual Results

2.3. Ctrip

Ctrip, Revenue by Segment. Ctrip growth rates are based on local currency in order to remove currency rate impact. Source: Ctrip 2018 financial results

2.4. eDreams Odigeo

Data for European market is taken from Lastminute’s 2018 annual report
Fiscal Year ends March of the following year. Elaborated from data in eDreams Odigeo FY 2017 and FY 2018 annual reports
“Classic Supplier Revenue” represents GDS incentives for Bookings mediated by us through GDSs and incentives received from payment service providers. “Diversification Revenue”: revenue earned through vacation products (car rentals, hotels and Dynamic Packages), flight ancillaries (reserved seats, additional checkin luggage, travel insurance and additional service options), travel insurance, as well as certain commissions, over-commissions and incentives directly received from airlines. “Classic Customer Revenue” earned through flight service fees, cancellation and modification fees, tax refunds and mobile application revenue. Source: eDreams Fiscal Year H1 2019

2.5. Despegar.com

Source: Despegar.com 2018 results

2.6. Lastminute Group

Lastminute Group revenue breakdown. Source: 2018 annual report
Lastminute Group, Dynamic Package revenues. Source: 2018 annual report
Lastminute Group core business EBITDA. Data from Lastminute’s 2018 annual report
Lastminute Group revenues by geography. Data from Lastminute’s 2018 annual report

2.7. MakeMyTrip

MakeMyTrip Revenue by Product. Source: MakeMyTrip 3rd fiscal Quarter results
MakeMyTrip Adjusted Revenue by Product. Source: MakeMyTrip 3rd fiscal Quarter results
MakeMyTrip Gross Bookings by Product. Source: MakeMyTrip 3rd fiscal Quarter results
MakeMyTrip Gross Bookings by Product. Source: MakeMyTrip 3rd fiscal Quarter results

2.8. On The Beach

Source: On The Beach 2018 Report

2.9. TripAdvisor

TripAdvisor, Revenue by product. (1) Consists of advertising revenue as well as transaction-based revenue from instant booking. (2) Includes revenue from non-TripAdvisor-branded websites, including primarily click-based advertising revenue and display-based advertising revenue generated through these websites. Source: TripAdvisor 2018 financial statements.

2.10. Trivago

Trivago Qualified Referrals. Source: Trivago 2018 Annual Report
Trivago Revenue Per Qualified Referral. Source: Trivago 2018 Annual Report
Trivago Revenue Mix per Advertiser. Source: Trivago 2018 Annual Report

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Mauricio Prieto

Entrepreneur, technology consultant, startup advisor, digital transformation. eDreams cofounder, former CMO