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Priceline outshines its rivals

May 13, 2008 | Online Travel

Priceline.com and Orbitz are two of the US' leading online travel websites. For a potential tourist seeking a cross-section of trip choices, the sites may seem similar in scope. But unfortunately for Orbitz, the two companies are moving in different directions.

riceline’s biggest gains also came internationally, but it was no slouch closer to home. Domestic gross bookings were up 51%. Domestic airline ticketing was down at Orbitz, and clearly a lot of that business moved over to plump up Priceline’s 83% gain.

How can two peers be so disparate? Is it better marketing—those catchy William Shatner ads? Is it Priceline’s gutsy move to do away with booking fees on full-priced airfare ticketing? Thrifty passengers may have been wooed by the “Name Your Own Price” bidding model that rests alongside Priceline’s more conventional booking service. But that can’t be the only explanation, because Orbitz also runs penny-pincher magnet CheapTickets.com.

Anything short of “all of the above” would be an incomplete answer.

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