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Technical Analysis on Expedia and Ctrip.com: Online Travel Companies Go Discount Way

   Technical Analysis on Expedia and Ctrip.com: Online Travel Companies Go
                                 Discount Way

  PR Newswire

  LONDON, February 5, 2013

LONDON, February 5, 2013 /PRNewswire/ --

Online travel companies are looking to thrive in the improving economic
scenario. However, the sector is still dominated by intense pricing
strategies. While companies like Expedia Inc. (NASDAQ: EXPE) are growing by
combining various services and offering cost-effective solutions to its
investors, Ctrip.com International Ltd. (NASDAQ: CTRP) became the victim of
its own discounting spree. The stock is getting pummeled as concerns about its
long-term viability grow. The sector is also seeing growing M&A activities.
StockCall has initiated comprehensive technical research on Expedia and
Ctrip.com. The free reports on these companies can be accessed by signing up
at http://www.stockcall.com/technicalanalysis

Expedia on Upward Trajectory

Expedia has been hitting new 52 weeks high and is set to report its fourth
quarter and full year results today. However, its growth is somewhat dwarfed
by one of its biggest competitor, Priceline. The stock is currently trading at
P/E ratio of 25.55, which is more or less in-line with Priceline's P/E ratio
Priceline. Expedia is going ahead with its strategy of forming enduring
relationship with airlines and hotels to offer synergistic benefits to the
consumers. It is also going to help the company to establish itself as
one-stop destination for meeting multiple travel needs. Register now and
download the free pre-earnings analysis on Expedia at
http://www.StockCall.com/EXPE020513.pdf

Expedia is also expanding internationally which will make its services
portfolio more immune to economic hiccups in a particular geographic area.
However, it also needs to diversify its client-base as the company mainly
relies upon leisure travel. Corporate travel forms a small part of its
portfolio and has much hidden potential. Expedia also recently invested in
upcoming hotel search engine Room 77. Hotel booking segment makes about
three-quarter of Expedia's total revenue and its collaboration with Room 77
will help it in driving up the volume. With margin of more than 20 percent,
hotel booking is also the most profitable segment for Expedia. The company
also acquired a majority stake in Germany-based hotel search engine Trivago.
The online travel company is likely to keep performing well in the near
future.

Ctrip.com Overdoes Discount Pricing Strategy

Ctrip.com is a Chinese travel site and despite its good start, has been
lagging behind lately. The company collaborates with Priceline and both the
companies mutually share their services. Ctrip.com stock has been clobbered
down lately, but in the long-run, the company stands to benefit from growing
economic clout of China and its prosperous middle-class. However, the company
faces stiff competition from eLong and 17u. Currently, Ctrip.com has lion's
share of China's travel market with about 45 percent of the pie under its
belt, but Expedia backed eLong is also making steady progress. Sign up now to
read the full technical analysis on Ctrip.com for free at
http://www.StockCall.com/CTRP020513.pdf

Ctrip.com, in order to remain viable, needs to protect its margin. The company
grew its market share through aggressive pricing. The company's emphasis on
rebate coupons is considered to be the biggest cause behind the steep fall
experience by its shares in the recent past. Ctrip.com reported its fourth
quarter financial numbers on January 31 ^st beating both top- and
bottom-lines.

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