In its U.S. online travel guide, Piper Jaffray reports that the “outlook for the domestic hotel industry continues to be positive, with Smith Travel research expecting 4%/7% room rate improvement in 2011/2012 from flat in 2010, which should benefit the OTAs.”
“Preliminary industry hotel RevPAR in February was up 8% y/y (+3% y/y room rate increase) vs. 8.7% y/y (+2.8% y/y room rates) in January,” Piper Jaffray writes.
“Air traffic grew 3.3% y/y during the month. Web traffic improved modestly across-the-board, down 5% y/y for Expedia Inc. EXPE (-12% in Jan.) and down 3% y/y for Priceline.com PCLN (-6% y/y in Jan) in the month February. We reiterate PCLN as our top 12-month large cap pick given strong international (~75% of company earnings) growth trajectory.”
Priceline.com closed Thursday at $464.41; Expedia closed at $21.47.
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