The Internet has become the most popular source for travel research (Google and OTX), and some companies have certainly profited from it. Going forward, this trend should only accelerate. Actually, analysts estimate that online travel sales will reach $523 billion by the year 2016, up from $374 billion last year (eMarketer).
TripAdvisor (TRIP), Priceline (PCLN) and Expedia (EXPE), three leading firms in the field, seem poised to get hold of a considerable portion of this revenue. Let´s take a brief look into them in order to elucidate which one stands as the best investment opportunity. With important hedge funds like the Vanguard Group investing in all three of them, at least one should be worth your money.
A Review on the Review King
TripAdvisor is the world’s largest online travel (and travel research) company. Through its websites, the firm offers not only hotels, flights, rentals and vacation packages, among many other related products and services, but also the most extensive review base on the web. Most of its revenue derives from travel agents like Expedia and Priceline, and other travel vendors, which pay TripAdvisor for deriving traffic. Advertising has become another major source of income, with more than 260 million unique monthly visitors, advertisers are willing to pay big bucks to be on the firm’s websites.
— Guru Focus