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Online Travel Agencies: 1Q12 Review
Analysts: Jake Fuller
Quarterly Outlook | Published: June 2012

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  • Summary

Publication Summary

Despite ongoing concern over the state of global macroeconomic conditions, online travel agency (OTA) performance was particularly strong in 1Q12 and significantly exceeded Wall Street expectations. Topline growth was robust and profit margins expanded in what is traditionally the weakest quarter for the OTAs. The themes to highlight from 1Q12: Global gross bookings accelerated and exceeded expectations, particularly in the domestic market. Marketing spend declined as a percentage of revenue as ad efficiency improved across the board for OTAs. Priceline continued to build share relative to Expedia and Orbitz.