Expedia tumbles most in seven years

Online travel agency Expedia plunged the most in seven years after missing second- quarter sales and profit estimates. Expedia's report raised concerns that the online travel industry, where it competes with Orbitz Worldwide, Priceline.com and TripAdvisor, is headed for a slump. Economic swings in Europe, as well as increased competition, has weighed on the performance of Web-booking services.

"The industry is getting more competitive in the U.S. and Europe," said Aaron Kessler, an analyst at Raymond James & Associates Inc. He cited Priceline's efforts to push its Booking.com service, as well as poor performance of Expedia's own Hotwire unit.

- Bloomberg News


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