Expedia's stock catches a lift

The company is looking at European growth through acquisitions.

By Trefis May 29, 2012 8:00PM
TrefisOnline travel agency Expedia (EXPE) posted excellent first-quarter results last month led by growth in international markets. The company seems to be continuing this trend as it heads into the European online travel markets.

A report released by leading digital business analytics firm comScore revealed promising growth in Web traffic from Europe at Expedia sites in April this year. The agency is fully committed to European growth through Egencia and its recent acquisition of Nordic travel management company Via Travel. Foreseeing robust online bookings growth in the international segment, the stock has already shot up 40% post the first quarter's earnings release on April 26.

Expedia Stock Break-Up

ComScore reported a 32% rise in unique visitors on 13 of Expedia's European sites in April, a substantial improvement over 7% growth in March 2012. European markets have witnessed massive growth in online bookings despite a macroeconomic slowdown.


The Europe Online Travel Report 2012 by yStats.com reported 20% growth in OTA (online travel agency) bookings in 2011. As shown below, Expedia still occupies only 6% of the European OTA market share, and a fragmented hotel industry promises tremendous growth potential in this region. In order to increase its reach, the agency is aptly extending its services on mobile phones through the launch of mobile apps for its travel booking services. Egencia mobile's Andriod version is the latest release.


The international markets formed 39% of gross bookings and 40% of total first-quarter revenue. The company envisions more than half of gross bookings and revenue through international points of sale in the near future. For this vision to materialize, Expedia will have to strongly leverage growth opportunities through Hotels.com, Egencia, VIA Travel, EAN, and Hotwire brands -- which find presence in Europe, Asia Pacific, Canada and Latin America.


Expedia Market Share of Occupied Hotel Rooms

More Trefis Stories

Tags: EXPE
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

113
113 rated 1
268
268 rated 2
422
422 rated 3
632
632 rated 4
512
512 rated 5
518
518 rated 6
682
682 rated 7
523
523 rated 8
343
343 rated 9
124
124 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.