Excerpt from U.S. News
The online retailer has a billion-dollar opportunity in travel.
Amazon.com, Inc. (Nasdaq: AMZN) has a long history of branching out from its core e-commerce business and successfully disrupting other industries. However, one of the few businesses Amazon has been unsuccessful in tackling has been the online travel industry, but Morgan Stanley analyst Brian Nowak says Amazon may soon get serious about travel.
Amazon has twice dipped its toes into travel in the past with Amazon Local and Amazon Destinations, neither of which gained much traction among users.
According to Nowak, Amazon initially had similar disappointing test trials in the grocery business before going all-in with its Whole Foods buyout.
Nowak says Amazon already has two major advantages when it comes to launching an online travel business – scale and customer loyalty. Amazon has more than 300 million global customers on its platform, and it has built a reputation for low prices and reliable service.