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Zacks Industry Outlook Highlights: Priceline, Expedia, Orbitz Worldwide, Ctrip International and TripAdvisor



Zacks Industry Outlook Highlights: Priceline, Expedia, Orbitz Worldwide, Ctrip
                        International and TripAdvisor

PR Newswire

CHICAGO, Nov. 13, 2013

CHICAGO, Nov. 13, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses
the U.S. eCommerce (part 2), including Priceline (Nasdaq:PCLN-Free Report),
Expedia (Nasdaq:EXPE-Free Report), Orbitz Worldwide (NYSE:OWW-Free Report),
Ctrip International (Nasdaq:CTRP-Free Report) and TripAdvisor
(Nasdaq:TRIP-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Industry: eCommerce (part 2)

Link:
 http://www.zacks.com/commentary/29872/eCommerce-Stock-Update---Nov-2013-%28pt-2%29

The U.S. Commerce Department expects international travel to the U.S. to
continue increasing over the next few years. Visitor volume is currently
expected to increase 3.7-4.2% a year from 2013 to 2017 leading to a 26%
increase in the number of users by 2018. Visitors from the Caribbean are
expected to be the slowest-growing (1%). The Middle East, Asia and South
America are expected to grow 67%, 60% and 52%, respectively.

The fastest growth is expected to come from China (229%), Saudi Arabia (191%),
Russian Federation (79%), Brazil (66%), Argentina (65%) and Columbia (54%).

The Travel and Tourism industry remains one of the country's strongest
industries, although the second quarter (latest available data) saw a
deceleration in its growth rate. According to the BEA, lower air passenger
travel as well as reduced automotive rental and leasing affected the industry
during the quarter. As a result, the industry grew 2.5% in the quarter, same
as the real GDP growth of 2.5% (in the first quarter it grew 7.3% compared to
GDP growth of 1.1%).

The top travel booking sites are Booking.com, Expedia.com, Hotels.com,
Priceline.com, Kayak.com (acquired by Priceline), Travelocity.com, Orbitz.com
and Hotwire.com. Since Booking.com and Kayak are part of Priceline
(Nasdaq:PCLN-Free Report) and both Hotels.com and Hotwire.com part of Expedia
(Nasdaq:EXPE-Free Report), this narrows down the top companies in the segment
to Priceline, Expedia, Orbitz Worldwide (NYSE:OWW-Free Report) and
Travelocity. However, there are several others worth considering that include
Ctrip International (Nasdaq:CTRP-Free Report) and TripAdvisor
(Nasdaq:TRIP-Free Report), which was spun off from Expedia, among others.

The global travel market grew 4% in 2012 and is expected to grow another 2-3%
this year. The Asia/Pacific region is expected to see the strongest growth (up
6%), followed by Europe and South America (mainly Brazil) at 2% each. North
America (mainly U.S. is expected to be flat this year [World Travel Monitor
2012].

According to the June 2013 TravelClick North American Hospitality Review
(NAHR), both occupancy and average daily rates (ADRs) in North America are
seeing steady growth this year. Occupancy rates grew much more than ADRs most
categories, indicating that demand is coming at the cost of prices. Individual
occupancy was higher than group occupancy with individual leisure occupancy
being stronger than business occupancy. In the second quarter of 2013, total
travel occupancy grew 5.3% from last year with ADR growth at 3.5%.

Group travel is expected to be flattish in the September quarter, although
individual travel (both in terms of occupancy and ADRs) is expected to
accelerate.

Online travel agents (OTAs) are growing the fastest this year: up 11.7% in the
second quarter, according to the TravelClick North American Distribution
Review (NADR). The hotels' own websites were up 8.1%, with direct walk-ins and
calls to the hotel growing 4.4%. The global distribution system, used by
travel agents and CRS (calls to a hotel's toll-free number) were also up 5.7%
and 3.7%, respectively, reversing a negative trend.

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