Which Online Travel Company Has Upside? – Priceline.com Inc (PCLN), Tripadvisor Inc (TRIP)

Additionally, Kayak Software Corp (NASDAQ:KYAK) has a decent profit growth outlook, as its query revenues are climbing at a strong pace. Mobile business is providing a growth engine through downloads of its mobile applications. Kayak realizes revenues from the sending of referrals to travel suppliers and agents, along with generating advertising revenues. The shares, however, have already priced in much of the long-term growth that may be in store, limiting their appeal. One of Kayak’s fellow companies is Travelzoo Inc. (NASDAQ:TZOO), offering travel information, and receiving advertising revenues. TZOO’s earnings are apt to decline year over year in the short term, as it invests in its products including the mobile and hotel operations. The shares are still reasonably valued and could jump on earnings surprises. We recommend them for the long haul.

Conclusion

Our exploration of the online travel sector indicates a few companies with exceptional business models that have gained recognition by investors, as well as a few that offer information primarily and are building their distribution effectively. It is important to consider the stock valuations as a prospective investor. That said, there may be some opportunity to exceed market averages should earnings continue to better expectations.

The article Which Online Travel Company Has Upside? originally appeared on Fool.com and is written by Damon Churchwell.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.