Expedia has strong performance, US online travel cattle stock

Buoyed by Better-than-expected results, the US online tour leader Expedia rose 14.3% per cent to $74.45 a share 7th, a record high and a rally for other online travel companies. Over the past five years, Expedia has risen more than 300% per cent, and its rival, Priceline, has risen 15 times-fold, both of which have become a shining Wall Street bull stock.

According to industry tracking agencies, the 2017 global hotel booking market will reach 545 billion U.S. dollars, of which 35% will be online booking. Analysts believe that online travel companies are expected to benefit from a shift in travel bookings to online services, where online travel companies that focus on developing global markets and have unique business models and niche customer positioning are particularly noteworthy.

Expedia has strong performance

Expedia, one of the world's largest online travel companies, reported a 18% per cent year-on-year increase in revenue from the fourth quarter of last year, after the company's 6th earnings show that it benefited from an increase in the number of hotel homes ordered through the site, as well as revenue from advertising and the media, which grew 41% year-on-year. to $126 million, both data are better than market expectations. The quarterly hotel business accounted for 71% of Expedia's global revenue, air travel accounted for 8%, and other revenue accounted for 21%.

An increase in the number of hotel houses ordered by three brands of Art Dragons, Expedia and Hotels.com, Expedia's total bookings for the fourth quarter rose 21% per cent year-on-year, up from 15% in the third quarter. Among them, the volume of hotel housing orders increased 25%, higher than the third quarter of 20% per cent increase, ticket orders increased by 13%. In the subregion, Expedia's domestic bookings rose 19% per cent to 4.98 billion U.S. dollars in the fourth quarter of last year, while international bookings increased 24% to 4.12 billion dollars year-on-year.

In 2013, Expedia revenue grew 18% to $4.77 billion, and net profit grew 3% to 452 million dollars. Total bookings increased by 16% to 39.4 billion dollars a year. The company expects profits of 2014 years without interest, tax, depreciation and amortization to increase by 13% to 16%.

As with rival Priceline, Expedia has continued to invest heavily in search advertising, with last year's fourth-quarter sales growth of 23% to 484 million dollars, accounting for 42% of revenue, and technology and content spending growing 15% to 155 million dollars.

Wall Street is bullish on Expedia's growth momentum. U.S. Bank analyst Post believes Expedia is expected to benefit from a shift in travel bookings to online services and to benefit from Asian business exposure, thanks to its strong brand and the holding of art dragons and joint ventures with Asian airlines.

After the earnings announcement, some agencies raised Expedia's share price expectations. Canto Fezgerald analyst Kehan, an advisory body, says Expedia's earnings show that the company's growth-boosting promotional efforts are expected to keep growing in 2014, raising its share price from $75 trillion to $80 to maintain a buy rating. Ammus, an analyst at JPMorgan, said the rise in Expedia bookings and revenues was driven by the stability of core brands, maintaining a neutral rating of the company's shares, and raising its target share price from $59 to $72.

American Online tourism Cattle stock frequency

The shares of other online travel companies in the U.S. were boosted by a surge in Expedia shares. As of 7th, Priceline.com Rose 5%,orbitz global 4%,tripadvisor rose 9.5%. In the stock, Ctrip Rose 2.15%, to where the net Rose 0.8%.

In fact, several companies in the U.S. online travel sector have been shining on Wall Street's cattle stocks for the past few years. Priceline shares rose nearly 90% per cent last year, and share prices have risen 15 times-fold over the past five years. 2008-2012, the company's net profit growth rate of 30% per annum, net assets yield remained at about 40%.

TripAdvisor's share price rose nearly 100% per cent last year and has risen more than 200% per cent since the Nasdaq listing in December 2011. The company's net profit grew by 18% per cent during 2010-2012, and 2012 per cent of the net asset yield reached 38%. Expedia's share price has risen 300% per cent over the past five years, with an average net profit growth of 15.3% during 2010-2012.

Industry tracker PhoCusWright expects the global hotel reservation market to reach $545 billion trillion by 2017, of which 35% will be booked online. This means that only the hotel online booking market will be up to 190 billion dollars in size.

Evercore Partner company reported last month that the global online hotel reservation business will continue to grow, Priceline will be the main beneficiary of this trend change due to its size and market share. The company raised its Priceline share price to $1350, expecting its market share in the hotel to rise from 6% to 10%, while increasing Expedia's share price to $64, which it expects will benefit from improvements in its Trivago search business.

Industry analysts point out that online travel companies that focus on developing overseas markets and have a unique business model and accurate niche customer positioning will have sustained performance growth momentum. For example, Priceline has created a "customer Self-pricing model" that allows consumers to quote a product or service to the Priceline website for a price they are willing to pay. The Priceline is responsible for sourcing from its own database or vendor network suppliers who are willing to sell the product at a price set by the consumer. This not only lowers the consumer's purchase price, but also saves the transaction cost, thus wins "the off-season" customer's favor, in the industry competition intense "the peak season" sale outside opens up the new world. Affected by this, Priceline in 2012 revenue reached 5.26 billion U.S. dollars, compared to 2005 to achieve nearly six times times the growth.