Merrill Lynch has taken a favorable position on the online travel sector, reporting that it sees Travelocity having the best revenue prospects amongst the group.
Merrill projects Travelocity online market share to increase to 23% in 2005 from 21% in 2004, as a result of increased hotel and package sales. The increase will be at Expedia’s expense.
For 2005, Merrill Lynch estimates 19% U.S. online agency bookings growth and 49% European online agency bookings growth, up from 15% and 42% entering the second quarter.
