Earnings on the Internet for booking
Kenzo Tribouillard AFP Getty Images When Alphabet reports first-quarter earnings Tuesday afternoon, the coronavirus-induced crash in tourism and travel will likely weigh heavily on the results.
Booking Holdingsthe parent of Booking. Travelers use Booking's sites to reserve flights, hotels, resorts, vacation homes and rental cars.
Airbnb last month suspended marketing as it copes with plummeting vacation home visits. Although it has many experimental and new businesses that generate publicity, Alphabet is overwhelmingly dependent on advertising for actual revenue. Now, Google's dominant ad business is facing its biggest test since the Great Recession.
With consumers in many of the biggest U. Online travel agencies are big spenders on Google because so many travelers book trips after going to the search engine and typing in queries like "flight to Paris," "hotel in Manhattan" or "car rental in Las Vegas.
The theory of utility is that every transaction we make in the marketplace is an attempt to maximize our satisfaction, however we choose to define that. A company that makes it as effortless as possible for a customer to make a purchase, replacing hours of drudgery with a few keystrokes, can write its own ticket.
Booking has long been one of Google's single biggest customers. While Booking didn't disclose how much of that money went to Google ads, the company said in its latest annual report that, "We use Google to generate a significant portion of the traffic to our platforms, and, to a lesser extent, we use other search and meta-search services to generate traffic to our platforms, principally through pay-per-click marketing campaigns.
Published by Statista Research DepartmentDec 9, Most industries have become increasingly digitized over the last decade. The travel industry in particular has gone to great lengths to cultivate its online presence. The online travel industry is primarily made up of travel e-commerce sites and review sites. Travel e-commerce sites specialize in the selling of travel products such as flights, accommodation, and rental cars.
Google also declined to comment. Google sees problems on the horizon and is putting in place cost-cutting measures. The company is slashing its marketing budgets by as much as half for the second half of the year, CNBC reported last week after viewing internal materials.
There's little doubt that the second quarter will be tough for Google, following a similar path as the last six weeks of the first quarter.