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Despite competitive pressures, Mr. Fogel was optimistic about Asia, especially given the rapid increase in travelers to the continent. He expects China to be its greatest source of growth going forward. However, he also called it a "land grab" that is highly competitive and admitted it's tougher for a non-Chinese company to compete in that market.

However, that doesn't mean Priceline is not trying. Whether that plays out successfully remains to be seen, but given that the company has owned Agoda for 10 years and not made significant inroads, it's reasonable to believe that Priceline will be challenged to find growth once the European market opportunity dries up.

Priceline giving a conservative guidance shouldn't come as a surprise to long-term investors. The company has made a habit of combining strong quarterly results with weak projections about its future. However, this quarter may be an inflection point where strong quarterly results may be coming to an end. If that trend plays out, hotels and airfare won't be the only price that will be negotiated.

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