Online Travel Agencies 4Q and Full Year 2012: Strong Finish to a Year of Uncertainty

Summary

It was a mixed year for the three publicly traded U.S.-based global online travel agencies (OTAs) – Expedia, Orbitz and Priceline. As growth in the domestic market continued to slow, softer but still buoyant growth overseas mitigated some of the slowdown at home. In Asia Pacific, the relatively smaller OTAs continued their double-digit sprint, but suffered a setback as growth slowed in two of the region’s biggest markets – China and India. Most APAC OTAs remain focused on their home markets, and for now have limited international reach or growth prospects.