Skip to main content

Milestone One: Expedia Example

Milestone One: Expedia Example.  For the accompanying video that explains this paper, please view on YouTube here and here.

Microeconomic Analysis of Expedia

Expedia Group is off to an excellent start in 2018. Reports from the first quarter show year-over-year growth rates of 15% in revenue, gross bookings, and room nights (Investors Overview, n.d.). As a consultant hired by Expedia Group I will be analyzing market and business data in order to make recommendations to ensure Expedia’s future success and sustainability in the market. This paper will provide a brief overview of the firm before diving into Expedia’s demand trends over the last 5 years, supply and demand conditions, and the price elasticity of demand for their products. A discussion of the costs of production will follow with an in depth look at variable costs, fixed costs, and the impact to profitability. The overall market section will include a discussion of the market share, barriers to entry, and market structure for the Online Travel Agency industry. Finally, recommendations will be made to Expedia based on the findings throughout the paper.

History

In October of 1996 the Expedia.com website launched as Microsoft Expedia Travel Services and announced its initial public offering before the end of 1999 (History – Expedia Group, n.d.). Expedia grew through the acquisition of many companies over the years, with the acquisition of SilverRail most recently in June of 2017 (History – Expedia Group, n.d.). Expedia Group continues its rapid growth in acquiring properties with the most recent quarterly report showing an observed growth rate of 74% year-over-year, representing the addition of 50,000 new properties (Expedia Group Reports First Quarter 2018 Results, 2018).

Overview

Expedia Group is an Online Travel Agency (OTA) based in Bellevue, Washington that owns over 200 travel booking sites in 75 countries with mobile websites available in 35 languages (About – Expedia Group, n.d.). Expedia Group’s mission is “empowering business and leisure travelers through technology with the tools and information they need to efficiently research, plan, book, and experience travel” (About – Expedia Group, n.d.), which they fulfill by distributing and marketing travel products. Expedia Group’s revenue is generated from three main sources: lodging (64%), advertising and media (11%), and airlines (10%) (Expedia Group Reports First Quarter 2018 Results, 2018). More than 22,000 employees in over 30 countries keep Expedia’s many travel sites up and running, including: Hotels.com, trivago, HomeAway, Orbitz, Travelocity, hotwire, CheapTickets, VRBO, and VacationRentals.com (About – Expedia Group, n.d.).

Citations

About – Expedia Group. (n.d.). Retrieved May 12, 2018 from https://www.expediagroup.com/about/

Expedia Group Reports First Quarter 2018 Results. (April 26, 2018). Retrieved from http://ir.expediagroup.com/static-files/e77857a5-c342-427e-ae96-92721dae94c7

History – Expedia Group. (n.d.). Retrieved May 12, 2018, from https://www.expediagroup.com/about/history/

Investors Overview. (n.d.). Retrieved May 4, 2018, from http://ir.expediagroup.com/

Labels:

Comments

Post a Comment

Popular posts from this blog

ECO-201 Milestone One Tips and Examples

Part I: Critical Element “Purpose” In order to receive a score of proficient (100%) on Milestone One you’ll need to outline the purpose of your paper and state how it will inform the conclusion. The best way to do this is to view the Final Project Guidelines and Rubric , paying particular attention to the Prompt and Critical Elements that will be addressed in your paper. When you turn in your final paper, in order to earn a score of exemplary (100%) you’ll also need to use industry-specific language to establish expertise. I recommend trying to write Milestone One as if it were your final paper, so that you can benefit from the feedback before your final paper is due. Below is an example of an introduction that would receive an exemplary score for The Hershey Company. Please keep in mind the following points as you work on your introduction: -The text in italics indicates where the purpose of the paper is outlined. -The underlined text indicates how the conclusion will be informed....
Post a Comment
Read more

Tips on ECO-201 Milestones Two and Three: Help With Using Financial Statements

Target (Example) • For finding Revenue you should find the Income Statement for your firm. The Income Statement (example below) is where you will find Revenues (needed for Milestone Two), Costs (needed for Milestone Three), and Net Earnings (or “Profit”). The first line will show you the revenue (or sales) and the line immediately below the total sales will show you the Costs of Goods Sold (COGS). Sometimes this is also called Cost of Revenue or Cost of Sales. These are the VARIABLE COSTS that your firms face, which is important in Milestone 3! Right beneath your variable costs you should see Selling General and Administrative expenses (SG&A), which are your FIXED COSTS. There is another post that explains why fixed and variable costs differ, but for now I want to focus on where you will see these costs on your Income Statement. • Notice for Total Revenues it shows from 2009 to 2014. If there isn’t a chart provided in the income statement that shows that trend you’ll need to cre...
Post a Comment
Read more

Choosing a Firm To Write Your SNHU ECO-201 Final Project About

If you have not yet selected a firm for your final paper, these companies have proven successful for this assignment by previous students and all on this list are publicly traded, US-based companies. Their products and markets are easy to identify and analyze with the microeconomic tools developed in this course. If you would like to choose a company not on this list, please work with me to make sure it’s a good fit for the assignment. List of Pre-Approved Companies to use for your ECO-201 Final Paper 1. Starbucks 2. Nike 3. Southwest Airlines 4. Netflix 5. Ford 6. GM 7. Under Armour 8. Chipotle 9. American Outdoor Brands (formerly Smith and Wesson) 10. Coca Cola 11. Whole Foods 12. Boston Beer Company (Samuel Adams) 13. Anheuser-Busch 14. First Solar 15. Tesla 16. Wendy’s 17. McDonalds 18. Harley Davidson 19. Campbells 20. UPS 21. Goodyear 22. Hasbro 23. EA If any of these options interest you, then you can go ahead and email your selection to me and get start...
Post a Comment
Read more