Online Travel Falls Short
13/08/12 05:31
Priceline (NASDAQ: PCLN) recently reported a disappointing third quarter profit outlook, expecting earnings per share of between $11.10 and $12.10. An earlier forecast had the estimate set at $12.82 per share. The company stated that economic conditions in Europe were the main reason for its forecast. Stifel Nicolaus analyst George Askew cut his rating on Priceline to a hold from a buy, stating the company “is transitioning from a momentum stock to a growth stock.” The results for Priceline are certainly not good, but this company is not being singled out. It seems the larger online travel industry is slowing down, not only losing momentum, but losing a bit of their growth as well.
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HomeAway Leads the Travel Industry
20/06/12 10:26
According to David Huether, senior vice president of economics and research at the U.S. Travel Association, "The U.S. travel industry continues to be one of the prime drivers of our nation's economic recovery, adding 7,000 new American jobs in April, bringing total direct employment to 7,581,000. Travel job growth was driven by the restaurants, lodging and airline sectors, offsetting declines in amusements, gambling and recreation." Huether provided this analysis in response to employment numbers from April 2012. In addition to job growth the travel industry is also seeing a higher number of travelers this year, responding to lower gas prices and higher job stability. The U.S. Travel Association forecasts a national 3% gain in travel this summer season, May through October.
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