Priceline.com (Nasdaq: PCLN) fell 3 7/16 Thursday to 36 3/4 following reports that six major airlines are teaming up to offer discount airline tickets, a direct challenge to the name-your-own-price e-tailer.
The Wall Street Journal said United Airlines, American Airlines, Northwest Airlines Corp., Continental Airlines Inc., U.S. Airways Group Inc. and America West Airlines have already gotten $75 million in investments in the site, set for launch in the fall.
Internet travel services are in hot demand. Forrester Research estimates the market will rise to more than $29 billion in 2003, more than four times the 1999 level.
Priceline itself is expanding rapidly. This week, the company announced a move into Europe, its third international venture this year.
Online travel site Cheap Tickets Inc. (Nasdaq: CTIX) also fell Thursday, losing 2 9/16 to 10 15/16.