Zacks Industry Outlook Highlights: Priceline, Expedia, Orbitz Worldwide, Ctrip International and TripAdvisor

Jul 12, 2013, 09:30 ET from Zacks Investment Research, Inc.

CHICAGO, July 12, 2013 /PRNewswire/ -- Today, Zacks Equity Research discusses the U.S. e-Commerce (part two), including Priceline (Nasdaq:PCLN-Free Report), Expedia (Nasdaq:EXPE-Free Report), Orbitz Worldwide (NYSE: OWW-Free Report), Ctrip International (Nasdaq:CTRP-Free Report) and TripAdvisor (Nasdaq:TRIP-Free Report).


Industry: e-Commerce (part two)


Although retail e-Commerce is the segment that most of us are interested in, it is in fact just a part of the overall e-Commerce market. In fact, retailers and service providers generate just 4.7% and 3.0%, respectively of their revenues online, a slightly higher percentage than they did in the prior year. The U.S. Census Bureau categorizes these two segments as business-to-consumer.

According to the U.S. Census Bureau, the manufacturing sector is the largest contributor to e-commerce sales (49.3% of their total shipments), followed by merchant wholesalers (24.3% of their total sales). These two segments make up the business-to-business category.

This places the business-to-business category at 90% of total e-Commerce sales, with the balance coming from the business-to-consumer category. The latest numbers from the Bureau suggest that the fastest-growing segments were retail and wholesale.

[All the above data from the U.S. Census Bureau relate to 2011, as published in May 2013] The industry is evolving very rapidly, so data collection and evaluation are particularly difficult. Consequently, one has to rely largely on surveys by both government and private agencies.

In this section, we will discuss segments of the e-Commerce market than do not relate directly to the retail of goods, and discuss instead travel, payments, security and advertising.


The U.S. Commerce Department expects international travel to the U.S. to continue increasing over the next few years. Visitor volume is currently expected to increase 6-8% a year from 2012 to 2016 leading to a 49% increase in the number of users during the period.

Visitors from the Middle East are expected to be the slowest-growing (29%). South America, Asia and Oceania growth rates are expected to be comparable at 83%, 82% and 82%, respectively.

The fastest growth is expected to come from China (232%), South Korea (200%), Brazil (150%), Russian Federation (139%) and India (94%). Travel and tourism is one of the country's strongest industries, contributing a trade surplus in each of the last 20 years.

The top travel booking sites are,,,, (acquired by Priceline),, and Since and Kayak are part of Priceline (Nasdaq:PCLN-Free Report) and both and part of Expedia (Nasdaq:EXPE-Free Report), this narrows down the top companies in the segment to Priceline, Expedia, Orbitz Worldwide (NYSE: OWW-Free Report) and Travelocity. However, there are several others worth considering that includeCtrip International (Nasdaq:CTRP-Free Report) and TripAdvisor (Nasdaq:TRIP-Free Report), which was spun off from Expedia.

The global travel market grew 4% in 2012 and is expected to grow another 2-3% this year. The Asia/Pacific region is expected to see the strongest growth (up 6%), followed by Europe and South America (mainly Brazil) at 2% each. North America (mainly U.S.) is expected to be flat this year.

[World Travel Monitor 2012] According to the April 2013 TravelClick North American Hospitality Review (NAHR), both occupancy and average daily rates (ADRs) in North America are seeing steady growth this year, with individual bookings (both leisure and business) doing better than group bookings. In the second quarter of 2013, total travel occupancy growth was 3.6% from last year with ADR growth even better at 3.8%.

Online travel agents (OTAs) are growing the fastest this year – up 13.7% in the first quarter, according to the TravelClick North American Distribution Review (NADR). The hotels' own websites were up 5.0%, with direct walk-ins and calls to the hotel growing 3.7%. The areas of weakness were the global distribution system used by travel agents and CRS (calls to a hotel's toll-free number).

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time!  Click here for your free subscription to Profit from the Pros.

Get the full Report on PCLN - FREE

Get the full Report on OWW - FREE

Get the full Report on CTRP - FREE

 Get the full Report on EXPE - FREE

Get the full Report on TRIP - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.