Is Booking in Better Shape for a Recovery Than Airbnb and Expedia?
Skift Take
The battle between Booking Holdings, Airbnb, and Expedia is not just about which one will emerge with the thickest wad of cash. It is also about business models, revenue stream diversity, and product offerings meshing the best with traveler behavior that may never be the same.
Along with the debate about the shape of a potential travel industry recovery, crosscurrents are emerging about which companies and business models would lead the charge.
Cowen Equity Research published a recent investor note contending that Booking Holdings is "in a better position to maintain staff today and invest in the recovery" compared with other online travel booking giants Airbnb and Expedia Group.
The Cowen note, written by Kevin Kopelman and Emily Lavin, centers on Bookings' advantageous liquidity position as compared to privately held Airbnb and public company Expedia.
Cowen estimated that the trio had the same fixed costs — around $750 million per quarter — before coronavirus-induced cost chops, but that recent financing moves leave Booking Holdings with about $8.5 billion in liquidity, and Airbnb and Expedia each with around $1-2 billion after the outflows of consi
