Booking profits

In 1998, a travel website called Priceline.com debuted, featuring a “Name Your Own Price” service. While many dot-com era startups never reached profitability and failed, Priceline prospered.

Today, it has rebranded itself Booking Holdings (Nasdaq: BKNG), which includes not just Priceline.com but also the Asia-based travel site Agoda, Kayak, Rentalcars.com, restaurant reservation site OpenTable, and its biggest brand (and smartest purchase), Booking.com.

The business of online travel and accommodations searching and booking has grown huge, and Booking is the world leader, with 2017 revenue of $12.68 billion, up 18 percent over 2016. Management expects its doubledigit growth trajectory to continue.

Consolidation within the industry has put a huge portion of the overall online travel business in the hands of just a few companies. Booking Holdings does face challenges, as rising competition has led some to fear that hurdles to further revenue gains could prove difficult to overcome. Yet through smart acquisitions, the company has been able to answer past competitive threats.

With solid economic conditions across much of the globe and a rising interest in travel, the outlook for the industry is bright, and Booking Holdings has established itself as a key growth leader. It’s likely to hold on to that role for years to come and deserves consideration for a berth in your long-term portfolio. (The Motley Fool owns shares of and has recommended Booking Holdings.)