NEW YORK ( TheStreet) -- Priceline (PCLN), Orbitz Worldwide (OWW), Expedia (EXPE), Travelzoo (TZOO) and MakeMyTrip (MMYT) are online travel stock picks, based on company fundamentals, analysts' ratings and performance metrics.
Statistics from PhoCusWright, a travel industry research firm, show that the travel market expanded by 10%, while online travel spending soared 12% in November 2010, with a 9% increase in hotel occupancy rates and a 3% rise in room rates. Benchmark Capital's forecast expects online travel to grow by 8% to $92 billion year-over-year in 2011.
Analysts at JPMorgan expect U.S. online travel spending to accelerate during 2011, driven largely by a recovery in average daily rates and travel volumes. Overall, U.S. gross bookings are likely to grow by 5% to $269 billion and online leisure/unmanaged business bookings are pegged at 11% to $108 billion. Furthermore, online gross bookings are likely to account for almost 40% of total travel spending in 2011.
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