The rating on Norwalk, Conn.-based Priceline.com reflects the highly competitive online travel agency market, some supplier concentration among airlines and hotels, and lower incentive fees from travel service processors. The company's good competitive position in the European online travel market, its market-leading "name your own price" bid-based business, low leverage, and positive discretionary cash flow balance these obstacles. Priceline.com's European hotel operation is one of the key sources of the company's good operating performance. Through Booking.com, the company's hotel-booking engine in Europe, Priceline.com established an early footprint in many secondary and tertiary tourist destinations, ahead of its competitors. The company has benefited from growing interest in these markets. Priceline.com's competitors include Expedia.com and Orbitz, which have much better representation in
