Priceline’s acquisition of Buuteeq brings it right behind the hotel front desk
Acquiring Buuteeq says a lot about how Priceline sees direct hotel bookings. It’s the future, it wants in but at what cost?
“Too big to fail” is an expression more used to describe banks than tech companies. Everyday a new article explains how Facebook/Twitter/Microsoft/Apple will fail and be replaced by something smarter.
Priceline’s diversification strategy seems to be trying to prevent such a fate. Following the acquisition of Kayak in November 2012 for $1.8 billion, the Connecticut-based firm has just acquired another piece of the puzzle by adding US-based direct-booking specialist Buuteeq.
Priceline is looking at a vertical concentration. The main alternative to booking through an OTA is to book directly on the hotel’s website (Buuteeq’s playing field). By setting foot in this business, Priceline is looking several years ahead, when OTAs will experience what happened to dinosaurs.