Priceline (NASDAQ:PCLN) is in the right place during a spending slowdown with its “name your own price” model for airfares, hotels, rental cars and a host of other services.
However, the real growth isn’t at home from people booking trips to Florida to see the grandparents — it’s internationally. PCLN offers hotel room reservations in about 100 countries and more than 40 languages. In Q1, for instance, international revenue soard by 59%.
It’s also doing a good job cross-selling, not just booking flights. The main driver of its strong first quarter was a jump in hotel reservations that go with the car rentals and plane seats its selling. Competitor Expedia (NASDAQ:EXPE) managed to best PCLN in Q2, tacking on a stunning 44% gain in just three months. But this stock is no slouch. Priceline is up 36% year-to-date in 2012 and 60% since early 2011.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing Jeff Reeves owned a long position in Apple.
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