Airbnb puts pressure on Priceline, Expedia sites

Channel: Fox Business
Published: 10 hours ago

Description
Driving Forces Enterprises Chairman Jeff Hoffman on the pressure Airbnb puts on hotel booking sites like Priceline and expedia and the antitrust concerns over big tech. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both ...



Transcript
Travel websites like priceline and expedia are facing some headwinds because of the airbnb ease of this world and because some hotels now say hey you can't book through the expedia's of this world. You got a book direct with us that hurts their business hmm come on in. Please someone who is an early executive at priceline and a he built expedia or part of the team that built it that man right ther ...
is jeff hoffman who joins us now, driving forces enterprise, ceo all right, jeff are these sites like expedia, for example, are the Under real pressure, are they having some of their profit margin taken off them? They are by the way i want abook my travel on a cheesegrater next time, so i'm not being nasty at apple. They it's the clash of the titans. They are battling head-to-head and trying to get into each other's businesses right um. You know booking. com a part of the booking holdings platform, the priceline family. They actually have more listings now, i believe, than airbnb in apartment, rentals, so they're trying to get into that space and meanwhile airbnb bought hotel tonight, so that they can provide discount hotels, so they're definitely going at it all of expedia as well as getting into the Apartment rental, space and others, but the big guys are definitely fighting it out. So you are part of the team, thatbuilt expedia correct. Yes, we built the backend, you know i'm in the hotel business and you guys are killing me because, but our guests used to book directly with us. Nobody does that anymore. No, they go through.

Expedia expedia takes its peace and that reduces my profit margin. Significantly. Do you know what you're doing here it does, but in the end i think the consumer is gon na win right, everybody's trying right now to become one-stop shopping for you. So if there's a cost in that model for convenience, somebody's got to eat that cost. Unfortunately, it might be hotel owners, like you, but one-stop shopping, is what it's all about. That'S why, for example, priceline boughtopen table and rental cars, calm everybody's trying to be one place to plan your entire vacation, so you don't have to go to a lot of sites to trip plan. Not that's the big focus now what i think of air b & b, i think they're coming up they're going public. I believe sometime this year that i think that's the plan. How do you feel about that? So do you? What do you think that air b & b is going when it's a public company um? You know, i do think that that's interesting testing the public market, like that. I think that part of the reason they want to go that way is that for the additional funding forthe for the resources they need battling, some of the giants like booking, has a much larger booking holding spends 5 billion dollars a year marketing because they have that Kind of money airbnb does not so i think, going to the public market to raise capital so that they can fight in that they can market bigger and better and be hipper and cooler. I think that's a lot of what their focus is and it'll enable them to do more. Related acquisitions in the one-stop travel planning space got it now.

I know you're a tech guy. So i'm going to ask you a big tech question: paris on facebook, google facing possible antitrust pressure. Shall we sayfrom the government? Do you think those three companies any of those three companies? Do you think this should be broken up? Well, i think that it should be looked at right and you know i noticed that congress keeps talking about this, but in fact we have the federal trade commission. We have entities whose job it is to professionally study antitrust right. That'S why there's the sherman act and the clayton act and the ftc act? I think it needs to be studied. I need to see real date a real proof that this is harming other businesses, harming consumers better for the consumers. There'S a lot of conjecture but i'd love to see a real study tosay. What is the price of allowing these companies to get too big and who's paying that price, and it might just be that some of them do need to be broken up to to level the playing field, but i just haven't seen the data yet now. How do you feel about a facebook or a google which which and shall i say, abuses my privacy? They lose my personal information. What do you think should happen to them? Yeah i feel like you know. I think that the penalties just aren't stiff enough. I mean we continue to have major data breach after major data breach and if you were compared like let's say you looked at thedata privacy laws in germany, those have teeth.

There are penalties that cause companies to take much bigger steps to protect data, and i just feel like the consequences of these data breaches that you read about a data breach, but you don't read about what happened to those companies. Maybe they get find some minut amount that they can easily afford, and it doesn't make me feel as a consumer like anybody's doing anymore, to protect my data. So i just feel like we need to step it up both in the technology and in the consequences of not protecting our data, the way it should be protected, and i see that coming down the pike. Frankly, i thinkthat's exactly what is gon na happen. Jeff hoffman thanks for joining us, appreciate it and i'll. Forgive you so much. You'Ve done me i'll. Forgive me for what you've done to my hotel holdings, yeah you're! Alright! Thank you.


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