Expedia Inc. (EXPE) is one of the leading online travel companies
in the world. The company reported strong results in the
last quarter, beating the consensus estimate. Although
bookings continue to be impacted by the recession,
management has taken promotional measures to improve
the conversion rate.

We are also positive about
international initiatives, which we think will be the key to
future growth. Cost management, a favorable online
advertising environment and solid financials are other
encouraging factors. In comparison, the possibility of
increased occupancy taxes and low growth in Egencia
(the smallest segment) seem less significant.

the declining average daily rates could be something to
watch. We are initiating coverage of EXPE shares with an
Zacks Investment Research