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Team ChartWatchers: Tom O’Connor Tina Vo Jamie Shah Michael Kaufman

Team ChartWatchers: Tom O’Connor Tina Vo Jamie Shah Michael Kaufman. Company Profile. Founded in 1997 by Jesse Fink . Headquarter in Norwalk, Connecticut. Priceline's official spokesperson has been William Shatner

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Team ChartWatchers: Tom O’Connor Tina Vo Jamie Shah Michael Kaufman

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  1. Team ChartWatchers: Tom O’Connor Tina Vo Jamie Shah Michael Kaufman

  2. Company Profile • Founded in 1997 by Jesse Fink . Headquarter in Norwalk, Connecticut. • Priceline's official spokesperson has been William Shatner • Priceline is an online travel company that provides travel services including airline tickets, hotel rooms, car rentals, vacation packages, cruises, reservation services and tour related coverage. • Serves USA, Europe, and Asia. • One special feature that they offer for U.S. customers only, is the choice for its customers to purchase travel services in a traditional, price-disclosed manner – “Name Your Own Price service” • Allows customers to make offers for travel services at discounted prices • The customers are allow to name their price for airlines • Traditional price-disclosed sales • Also provides online auction service: Priceline Yard Sales. Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  3. Company Profile • Offers financial services through Priceline Mortgage Company LLC. • During November 2007, Priceline “permanently” eliminated all booking fees on published airfares. • In 2007, it acquired Bangkock and Singapore based Agoda Company. • Parent company of Booking.com • Mr. Jeffery H. Boyd , 52Chief Exec. Officer, Pres, Director, Chief Exec. Officer of Lowestfare.com of Lowestfare.com Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  4. Operations • Priceline is a service industry – offer a variety of services • Goal: Increase volume while maintaining gross margins • Generate revenue from: • Transaction revenues from “Name our Own Price” • Commissions earned from price-disclosed sales • Customer possessing fees • Transaction revenue from price-disclosed hotel service • GDS reservation booking fees • Selling advertising • Majority of gross profit from hotel bookings • 60% of revenue from international business (primarily booking.com) Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  5. Industry Analysis Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  6. Key Statistics Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  7. Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  8. Technical Analysis Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  9. Technical Analysis (cont) Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  10. SWOT Analysis Strengths • Marketing • Diversification • Profitability • Strong relationships with international chains and independent hotels Weaknesses • Flaws in “Name your own price” model • Success tied to “ADRs” • Exposure to exchange rates • Other macroeconomic variables that could affect success Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  11. SWOT Analysis Opportunities • Recent global growth • Increase in INT’L online travel booking rates • Small, INT’L companies more willing to use agents • Weakening US Dollar • Potential to expand to other global markets Threats • Slow international recovery • Slow demand growth • Loss of competitive pricing advantage - competitors eliminating processing fees • Shift away from using third-party book distributors domestically • Decreases in domestic airline capacity  reduce available airline tickets • Fewer bookings • Higher price of oil Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

  12. Recommendation Short-Term: Hold • Major gap-up following earnings • Technical analysis indicates overbought • Consensus analyst price target of $220 • Cautious Transports outlook • Using priceline.com in short run may not be profitable for some companies Med-Long Term: Buy • Online “third-party” websites quickly replacing traditional travel agents • M&A’s in company’s long-term vision • Many untapped global markets • Strength of brand names regionally • Worldwide exposure - In the past quarter, PCLN profits soared 44% when travel was below normal. Travelers who were going to fly regardless sought the best possible deals with Priceline, leaving Expedia and Orbitz Worldwide struggling to turn a profit. Company Profile Operations Industry Analysis Key Statistics Technical Analysis SWOT Analysis Recommendation

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