Priceline.com Reports Steady Demand in Leisure Travel
Tuesday, September 15th, 2009
Despite the economic downturn, online booking site such as Priceline.com are reporting a steady increase in demand for leisure travel packages. According to a recent report in Fox Business News, shares of Priceline.com climbed 13% and hit an all-time high for the year on Monday, reporting an increase of 35% in net income for the second quarter (Source: FoxBusiness.com)CEO Jeffery Boyd says that leisure travel demand during summer season was particularly strong this year, even though some people decided to forgo their annual summer vacation in favor of a ‘staycation’ in their home town. Boyd says that the increase in bookings could be linked to the increased availability of deep discounts provided by hoteliers, airlines and travel package providers around the country.
This past summer, many name brand hotels and airlines slashed prices to all-time lows in an effort to outdo their competitors and gain increased market share in the tough market. Hotel room rates that were discounted as much as 50% or more could be found in all major markets, and travelers that booked with online booking sites such as Travelocity.com, CheapTickets.com and Priceline.com could take advantage of several attractive package deals that offered even better discounts than ‘a la carte’ purchases. Many hotels also offered two-for-one rates, and discount cards or certificates for futures stays.
Priceline.com and other online booking sites are looking forward to increased demand in the leisure travel segment through 2010 as the economy slowly improves. Coupled with continued discounts and specials from major hoteliers and airlines, travelers may soon be back to their usual travel plans for the holiday season through the first quarter of 2010.
Priceline.com’s stock was trading at $148.10 recently, after closing the week before at $131.08. Overall, the company’s stock has increased nearly 80% in 2009 as it continues to offer attractive deals to budget-conscious travelers.
