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Technology Stocks : Booking Holdings (formerly Priceline)
BKNG 4,582-2.3%Nov 20 3:59 PM EST

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To: Pruguy who wrote (1835)9/12/1999 10:45:00 PM
From: Rajiv  Read Replies (1) of 2743
 
for a commision

This is correct for its car/mortgage services. I believe it is incorrect for the airline tickets and hotel reservation services.

This is how it works -

Airline XYZ gives 100 tickets from A to B priced at $200/ticket. PCLN accepts offers made by people which are above 200/ticket. For some offers which are below $200/ticket, it still accepts the offer - in some cases the subsidies are compensated by its adaptive marketing strategies (you have to open an Etrade account, apply for a credit card, etc.) In some cases, PCLN may decide to sell at a loss to gain market share. As I mentioned in a previous post, PCLN is filling a higher % of offers it receives - this means offers which PCLN previously though unwise to fill are being filled using the current policies.

Regards,
Rajiv
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