Last updated on April 24, 2014 at 17:35 EDT

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

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


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


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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Source: PR Newswire