Technical Analysis on Expedia and Ctrip.com: Online Travel
Companies Go Discount Way
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 31st
beating both top- and bottom-lines.
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