OpenTable’s Data Creates Revenue Opportunities

Recently, Priceline purchased OpenTable for a 46% premium!  This may seem high for the restaurant reservation service, but I can see why Priceline would pay $2.6 billion for the company.  The company still has a great opportunity to further expand its reservation and software sales into domestic and international markets, as they have only captured a small portion of these markets.  The purchase also allows for Priceline to provide a dining experience for its traveling customers.  But I am more interested what Matt Roberts, OpenTable’s CEO, said in the 2013 Annual Report “we serve and engage users in new ways that create active, loyal customers for life” and I believe these “new ways” will not only foster a greater customer engagement, but will also drive new revenue opportunities through its data knowledge of its 15 million users.