Priceline plans to expand its business in China through Agoda and Booking.com. Glenn D. Fogel said that “when the time is right”, they will consider opening an entity in China...

Priceline plans to expand its business in China through Agoda and Booking.com. Glenn D. Fogel said that “when the time is right”, they will consider opening a physical operating agency in China.

In August of this year, when Priceline announced its second-quarter results, it clearly stated that its increase in total global bookings was due to geographic expansion, increased hotel supply and new market growth. In the second quarter, its international business grew rapidly, with a 32% increase in total bookings (in local currency terms).

The US company believes that Priceline's strong business base allows them to invest in the future while promoting current earnings growth.

Priceline CEO and President Jeffery H. Boyd is very clear about his international business development blueprint. Next, the company intends to continue investing and integrating in some geographic areas. In fact, Priceline plans to open new offices in São Paulo, Cape Town, South Africa and the Middle East.

Obviously, Priceline's expansion plan does not currently include China, at least there is no sign.

opportunity

Glenn D. Fogel, executive vice president of corporate development at Priceline, said that "when the time is right," they will definitely consider opening a physical operating agency in China.

Fogel said in an interview with Global Travel News reporter Hriday Malik: "The charm of the Internet is that a company can do a good job without a formal office."

Priceline has plenty of time, and Glenn has repeatedly stressed that a latecomer can be very successful.

Fogel said: "We believe that success is made up of many factors, not just entering a market very early. As far as the current situation is concerned, our Agoda.com and Booking.com (hotel booking brands) have attracted a large number of customers. For hotels in China, we will continue to increase the inventory of the hotel. At the same time, let Chinese customers book hotels in countries around the world through our services, and get preferential prices and Chinese information about the hotel."

Overall, Priceline has aggressively expanded its business in China through two hotel booking sites, Agoda and Booking.com. Both brands are expanding their hotel partners in China, adding local sales staff to support the growth of the company's business; on the other hand, developing website distribution partners to promote their products online. Priceline agrees that China's tourism market is very attractive both domestically and inbound and outbound, and will continue to grow.

That's why the company continues to increase its Chinese hotel inventory and Chinese content, and Priceline will strive to maintain its leadership as the world's largest hotel distributor.

Pure online booking mode

One of the things that needs to be concerned about operating e-commerce in this market in China is to operate as a pure online booking model.

In the past, Priceline realized that the services from the call center in the markets it serves are negligible in China, and a large part of the so-called online transactions are actually done through call centers. In addition, the penetration of credit cards is also the focus of their consideration.

But some famous online websites, including eLong, say the situation is already changing.

Fogel said that more and more bookings through Priceline are pure online transactions, not phone transactions.

He said: "But we will continue to provide telephone booking services. We believe that customers can get good service in this way. Of course, from a profit perspective, we want more people to use online booking. But we know that at some In some regions, the acceptance of online transactions is still relatively low. In any case, China is an attractive market for us, and we will continue to expand our business through Booking.com and Agoda.com."

Fogel added: "Pure online mode has a greater advantage than call center. After all, the call center's salary cost is relatively high, especially in Europe and the United States. But Ctrip's success proves that as long as the wage cost is relatively low, call Center-based travel companies can also succeed. The debate between labor costs and technology costs is a common problem. Once technology costs continue to fall and labor costs continue to rise, only technology-oriented companies can get more benefits."

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