priceline.com, Inc. (PCLN
) is a leading online travel agency that operates several online sites, including booking.com, priceline.com, rentalcars.com and agoda.com. Its shares fell after it reported a weak global outlook for its upcoming quarter, especially in Europe, which accounts for a majority of its cash flow. Despite the near-term macroeconomic headwinds, we remain positive on the company's longer-term outlook. Priceline's penetration of the European market for hotel rooms is still below 15%, representing, we believe, significant runway for the company to grow in that market. Further, the company's penetration in the fast-growing Asian travel market is also quite low, leaving additional room for growth.
From Baron Funds’ third quarter commentary.