The winner is TripAdvisor with shares rising 25% on the news. The news for further OTA consolidation is not good for the other OTA rivals and for most hoteliers. The deal will fuel additional fee revenue for TripAdvisor, which up to now is mostly dependent on advertising fees (Priceline being a major client), and a shot at becoming a one-stop tourist booking spot. Recently, hotel chains like Marriott and Best Western have made deals with TripAdvisor that allow travelers to book rooms through the site.
Soon Booking’s sister booking sites Agoda.com and Priceline.com will soon join the party.
Winner or loser: Booking.com will reach new customers, especially outside Europe. At the same time some Priceline customers will prefer to use TripAdvisor.com booking platform which will lead to reduced revenue.
Losers: Priceline’s major competitors like Expedia may have to consider their own deals. On the news Expedia saw its stock price plunge 4 percent.