Online Travel Agencies' Moats Supported by COVID-19, Key Markets
Competition presents headwinds to players in the travel market, however.
Although the shares of online travel companies have rebounded from the undervalued levels seen during parts of 2020, evaluating the competitive positioning of Booking (BKNG), Airbnb (ABNB), Expedia (EXPE), and TripAdvisor (TRIP) can prepare investors for action if opportunities occur. We think five key factors influence the network effect advantages that underpin these companies’ narrow economic moats.
Dan Wasiolek has a position in the following securities mentioned above: GOOG, GOOGL, AMZN. Find out about Morningstar’s editorial policies.