World Panel
Viewpoint21 June 2019

Is Amazon the 'elephant in the (hotel) room'?

Digital Marketing in Hospitality

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Is Amazon the 'elephant in the (hotel) room'?
This viewpoint was created by
Simone Puorto, Founder | CEO | Futurist
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Simone Puorto
Founder | CEO | Futurist

A study by OAG revealed that 44% of travelers would gladly book on Amazon. However, after the experiment, Bezos' company stayed relatively quiet in the industry. At least on the surface: amongst other things, it signed an agreement with Meliá Hotels International, closed a deal with ClearTrip, and led a $500M funding round for Deliveroo. The trend seems pretty clear: AMZ is slowly dropping the idea to create a proprietary ecosystem, preferring to partner, invest or buy other companies. Now the question is: which one(s)?

1. Expedia stock value dropped from over $150 to $110 in one year and, with 1:14 stock ratio, the acquisition would give Bezos the technology and know-how necessary to compete with Google.
2. Trivago is another possible, inexpensive, choice: last June, the German metasearch engine was worth over three times its current value. 
3. TripAdvisor may have found a new youth with the new feed-based design, but it is still worth half of what it used to be 4 years ago and could be another easy pick.

All those investments would be possible for a company with a capitalization of >$1,000B. Moreover, don't forget that AMZ recently opened (and, suddenly, closed) a position for a Head of Marketing Hospitality and Travel "to develop, lead, and execute AWS' global marketing strategy", revealing its interest in the industry.

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