Continuing on our theme today of getting more out of our Web visitors, let's look at the example of Expedia Inc. (EXPE), the leader in online travel companies.
They reported that their profit for the 3rd quarter dropped by a large 28 percent, saying that slowing domestic bookings and the loss of interest income for IAC/InterActiveCorp, formerly its parent, were the major causes.
Part of the challenge in the online travel industry is that airlines and hotels are entering into the space themselves and finding success in it. The result is less bookings for the travel companies or a stronger negotiating position ... in the case of hotels. In other words, the businesses they are serving are now direct competitors with them.
This is one of the reasons why I always say that technology can never 
be considered a differentiator, eventually everybody will get it. The travel sites will only become a commodity if they don't find ways to separate themselves from competitors in consumers' eyes.
The online travel agencies are experiencing the same problems of visitors coming to their sites to get information, and then going to other sites to make their reservations or spend their money.
Chief Executive Dara Khosrowshahi offered two key ways to tackle the issue. One was to develop a strong loyalty program that they've launched this week, and the other to focus their major efforts on creating ways to encourage more sales on the site. It sounds to me like they need to enhance their behavioral targeting efforts to make that happen.
They are already being squeezed for profits with net income for the quarter at $59 million, or 17 cents a share, down drastically from last year's $82 million or 23 cents a share.
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