Thursday, March 10, 2011

Bing (MSFT), Expedia (EXPE), Google (GOOG) and New Travel Price Predictor

The new travel feature from Microsoft's (MSFT) Bing search results will put pressure on Expedia (EXPE) and Google (GOOG) in the travel segment.

When performing a travel search, Price Predictor "automatically suggests flights based on the lowest airfares. It also suggests if one should buy now or hold off for a better fare based on how fares are trending," according to TheStreet.

Expedia will be immediately impacted and Google will probably be forced to regroup and make significant changes in its travel search efforts.

"The budget traveler normally looks up at various sources over the Internet for best deals on airfares, hotel stays and special holiday packages. While the quick comparison facilitated by Bing's new feature might make the travel bookings more convenient for users, it reduces the number of visitors to online travel sites like Expedia. The reduced traffic translates into lower revenue from advertising placements on the websites as well as lower booking fees," concluded The Street.

Expedia was trading at $21.49, up $0.04, or 0.19 percent, as of 1:01 PM EST. Google was trading at $584.31, falling $7.46, or 1.26 percent, as of 1:02 PM EST. Microsoft was at $25.66, down $0.23, or 0.89 percent.




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