Kayak, the popular multi-airline airfare search engine, thinks Microsoft Bing’s new travel search engine looks so much like its own that it’s confusing Kayak users. The travel search company sent Microsoft (MSFT) a legal letter last week telling them to cut it out, Wired.com has learned.

Read the rest of this post on the original site

The rebound of the online advertising sector appears to be temporarily delayed.

JMP Securities analyst Sameet Sinha writes in a research note that “after a strong March, a solid April and an in-line May,” there had been talks of an online ad turnaround. But he contends momentum has faded in June. “Budgets have declined as advertisers are not feeling as chipper anymore,” he writes. “Travel and finance continue to be weak, while retail is exhibiting mixed trends.”

Read the rest of this post on the original site

Standard & Poor’s analyst Scott Kessler late Thursday cut his rating on Priceline.com (PCLN) to Hold from Buy on a valuation basis. Kessler notes that the stock has rallied 38 percent off an early February low, and is closing in on his $100 price target.

Read the rest of this post

As the recession-pressured market for leisure travel shrinks, the competition for online travel customers is heating up.

Expedia (EXPE) today unveiled an aggressive new promotion, which it calls “Free Nights and No Fee Flights,” offering to pick up the tab for one night in a hotel for stays of three, four or five days at a group of more than 700 participating hotels, and also waiving booking fees for flights booked before the end of May. The hotel promotion currently is for bookings made by April 9 for travel through May 15; the company said additional deals will be posted for bookings beginning April 9 for travel through the end of May.

Read the rest of this post

The recession is taking a serious toll on American retail, but e-commerce could emerge as a winner.

According to a new report by Forrester Research (FORR), e-commerce sales (beyond travel) are likely to grow 11 percent to $156 billion in 2009. That marks a slowdown from 13 percent growth last year and 18 percent in 2007. The major factor contributing to the pace shift is, of course, declining consumer confidence.

But e-commerce’s slowed pace is still far better than the National Retail Federation’s forecast .5 percent drop in overall retail sales this year.

That means e-commerce is stealing market share from traditional retail–and fast. By Forrester’s estimates, in 2008 e-commerce accounted for five percent of all retail sales (excluding cars, travel and prescription drugs). In 2012, Forrester thinks e-commerce could have an eight percent share.

Read the rest of this post

You will not be shocked to learn that online holiday spending is not off to a good start.

ComScore today reports that for the first 23 days of November, e-commerce spending (excluding travel, auctions and large corporate purchases) was down four percent from the same period last year. ComScore Chairman Gian Fulgoni said that “with consumer confidence low and disposable income tight, the first weeks of November have been very disappointing.”

ComScore’s forecast is that overall online spending this year will be flat versus a year ago. That compares with a 19 percent rise in spending online last year, and a nine percent rise in e-commerce for the year through October.

Read the rest of this post

Travelzoo (TZOO) yesterday posted weaker-than-expected Q3 results. The online travel information company reported Q3 revenue of $18.8 million and a pro forma loss of 13 cents a share. The Street had been looking for $21.9 million and a loss of nine cents.

“Q3 2008 was impacted by weak North America operating results due to a weak economy and the continuation of our aggressive expansion in Asia Pacific and Europe,” Travelzoo CEO Holger Bartel said in a statement.

Read the rest of this post