Priceline Blames Slow Airline Sales For Shortcomings, But Is That All? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Priceline Blames Slow Airline Sales For Shortcomings, But Is That All?

Priceline.com Inc. on Wednesday joined a growing chorus of tech companies warning of quarterly revenue that will fall short of expectations--in Priceline's case, by $20 million to $40 million. The veteran online retailer blamed slow airline sales.

Analysts had expected the name-your-price retailer to report revenue of $360 million to $380 million when it releases its third-quarter results in November, but Priceline says revenue will be more like $340 million. Though these figures still show growth over last year's third quarter ($152 million), investors hit the panic button. Priceline's stock plunged $7.86, to $10.75 at the end of trading Wednesday.

Company CEO Daniel Shulman attributed the shortfall to the fact that direct-sale airline promotions and fuel surcharges kept people from buying tickets from his site. That particularly hurt in September, historically Priceline's strongest month for airline-ticket sales.

While David Provost, senior analyst with Gomez Advisors, agrees with that assessment, he says the company's problems may run deeper. According to Provost, Priceline's added fees and less-than-adequate service have turned off potential customers. "You don't get the price you expect, and then when you want to call up to complain or with a question, you're not being adequately served," he says. But, Provost says, this is just a glitch that by no means indicates a long-term failure for Priceline. "This is early in the game, and the future is very bright."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Commentary
The Best Way to Get Started with Data Analytics
John Edwards, Technology Journalist & Author,  7/8/2020
Slideshows
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll