Preview Travel (PTVL) ---- Via...Excite & AOL Message Board

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Technology Stocks : Preview Travel (PTVL) ---- Via...Excite & AOL

PTVL 1.390

0.0%

Jan 21 4:00 PM EST

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To: pater tenebrarum who wrote (659)	5/18/1999 7:47:00 AM
From: Kip518	Read Replies (1) of 728

Clearly what is worthy of comment in the quarterly report is the change in revenue mix. PTVL now receives a substantial portion of revenue from advertising rather than just ticket sales. This suggests that PTVL may be seeing its future more as a travel info site than sales site. Given the small margins in ticket sales and the increasing competition from online sellers (including the air carriers, themselves as well as priceline.com, etc.), this could be a reasonable strategy, however, ultimately, it is no less competitive. Also worth noting is the substantial decline is PTVL's own advertising costs. That could be good if it implies that PTVL has established itself sufficiently well that expensive links are less necessary, or bad, if PTVL cut these costs because they were not producing satisfactory results. Difficult to know.

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