...Top Lines Still Have Room to Grow Fitch Ratings expects industrywide gross booking trends to increase at a low-to-mid- teens rate during 2016 due to penetration of mobile and online bookings, supplemented by additional strategic acquisitions in underserved markets. Gross booking trends continue to show strength both in the U.S. and worldwide. Expedia and Priceline grew total gross bookings by 18% and 11% year-over-year, respectively, on a LTM basis ending Sept. 30, 2015. Fitch feels that the addition of ancillary services like Priceline's OpenTable and complementary product offerings like Expedia's planned purchase of HomeAway will add to each company's organic booking growth pace. Margins Face Pressure Ongoing pricing pressure in the online travel agency (OTA) market combined with increasing competition with direct sales channels will weigh on future profitability. Sales and marketing expenses have grown as a percentage of revenue since 2009, and Fitch expects marketing spending to remain...
