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Online Travel Agencies' Moats Supported by COVID-19, Key Markets

Competition presents headwinds to players in the travel market, however.

Dan Wasiolek
Mentioned: , , , , , , ,

Although the shares of online travel companies have rebounded from the undervalued levels seen during parts of 2020, evaluating the competitive positioning of Booking (BKNG), Airbnb (ABNB), Expedia (EXPE), and TripAdvisor (TRIP) can prepare investors for action if opportunities occur. We think five key factors influence the network effect advantages that underpin these companies’ narrow economic moats.

  • What is the structural impact to demand caused by the global pandemic?
  • How are industry operators positioned in the growing alternative accommodations market?
  • What is the competitive landscape in the attractive experiences market?
  • Who stands to benefit from the large traditional hotel industry?
  • What is the competitive threat from dominant technology companies like Google (GOOG)/(GOOGL), Amazon (AMZN), and Facebook (FB)?

Dan Wasiolek has a position in the following securities mentioned above: GOOG, GOOGL, AMZN. Find out about Morningstar’s editorial policies.

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