More competition could squeeze Priceline's margins -Barron's
NEW YORK, April 14
NEW YORK, April 14 (Reuters) - Heightening competition for travelers' dollars could squeeze profit margins for online travel agencies, including Priceline.com Inc, the best performing stock in the S&P 500 over the past five years, Barron's said in its April 15 edition.
Priceline's annual profit increase could fall to the mid-teens from the more than 20 percent the company and its investors currently enjoy, Barron's said.
While expansion into Asia and Latin America could be the next big opportunities for these companies, business there could be riskier and less profitable than the United States or Europe, according to Barron's.
Expedia Inc, Orbitz Worldwide Inc and privately held Travelocity could also see margins squeezed, Barron's said.