Online travel stocks downgraded

February 7, 2008

CNN is reporting that some U.S. online travel stocks have been downgraded and as a result many more have dropped in value. Priceline, Orbitz and Expedia have been downgraded by analysts and Travelzoo have underperformed.

It’s interesting, makes me wonder if there is more about this than economic shocks in the U.S. I’d hazard a guess that they are beginning to suffer to price comparison sites and more technologically adept traditional players.

The growth these online agents experienced a few years ago had to slow eventually and it looks like the market is displeased. Expect Expedia to do best as they now have the media angle with Tripadvisor advertising revenues to take into account.

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