Orbitz Worldwide, Inc. (OWW), Tripadvisor Inc (TRIP): Are Online Travel Companies About to Take Off?

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Conversely, Orbitz Worldwide, Inc. (NYSE:OWW)’s debt-to-equity ratio is 31.6 – a very high ratio due to Orbitz’s low equity. Down the line, this could adversely affect the company’s attempts to expand its operations.

The bottom line

Despite the little growth in the number of passengers flying, online-travel companies continue to benefit from the rise in domestic demand for their services. The ongoing rise in the international arena could keep their revenue growing, even though it may also lower their profit margins.

But the growing competition from other companies and a decline in the number of flights could eventually curb growth in revenue. Finally, the high profit margin, sharp rise in revenue and financial stability of Tripadvisor Inc (NASDAQ:TRIP) and Priceline.com Inc (NASDAQ:PCLN) make them appear to be better investments than Orbitz.

Lior Cohen has no position in any stocks mentioned. The Motley Fool recommends Priceline.com and TripAdvisor. The Motley Fool owns shares of Priceline.com and TripAdvisor.

The article Are Online Travel Companies About to Take Off? originally appeared on Fool.com.

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