Expedia, Inc. EXPE should benefit from the ongoing recovery in domestic travel demand in 2011, Benchmark reports.
“Revenue margin is likely to see at least some modest expansion through an accelerating ADR recovery and moderating airfare spikes as capacity slowly comes back online,” Benchmark writes.
“Further international expansion, predominantly in Europe and the APAC region, could help drive total bookings growth of 12% y/y, leading to 15% revenue growth, 19% OIBA growth, and $2.00 in EPS in 2011.”
Benchmark said that US Online travel spending accelerated throughout 2010 with 12% y/y growth in November, according to comScore, Inc. SCOR, despite increasingly difficult comparisons in the back half of the year.
“Recovering hotel occupancy and higher airfares boosted travel spending,” Benchmark continued. “We forecast 8% y/y growth in domestic online travel spending to $92 billion in 2011.”
Expedia closed Tuesday at $27.19.
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Posted In: Analyst RatingsBenchmarkConsumer DiscretionaryExpediaInformation TechnologyInternet RetailInternet Software & Services
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