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Should I buy TSG Sabre or EXPE Expedia? Should I chose TSG’s generous dividend yield or EXPE’s market leadership on online travel? December 12, 2006

Posted by deminvest in EXPE Expedia, stock I own, stocks, stocks that pay high dividends, TSG Sabre.
9 comments

Let’s face it. We the people do like use the Internet for free.

We do not like to pay somebody we don’t see. And since we are many, we are powerful and we are imposing our Low Cost Society vision: whoever wants to have some success online has to give us services for free!

There is one great exception to this rule: travel sites.

In our great kindness, we are actually ready to award hefty commissions on reservations of hotels trough the Internet. Why? Simply because we don’t notice. We see the price for hotel rooms and we book. Untill free hotel reservation projects gain momentum, we and hotel owners will continue giving between 6% and 10% of room rate to the likes of Expedia, Travelocity, Lastminute.com, Priceline…

Well my simple brain comes out with a simple idea: “If it is so simple to make such commissions without much hassle, probably online travel sites must be good stocks to own”

By a fast research I found out two cadidates:

TSG Sabre owns Travelocity.com and lastminute.com. It also owns the Sabre computer reservation system used by travel agents and airlines

EXPE Expedia owns expedia.com, the leading onlinetravel reservation system and also http://www.tripadvisor.com , a growing community of travellers evaluating tens of thousands of hotels all over the world reporting their stay experience.

To decide wht to chose I will, as usual, give a look at some main numbers:

(more…)

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