Recent years have been a nice ride for companies such as Expedia and Priceline, which have both witnessed tremendous gains.

On a macro level, though, both companies saw such substantial gains because the market continued to grow at double-digit rates — a phenomenon analysts think is not yet over.

With 50% of revenue coming from advertising, KAYAK is actually in a better position than some of its competitors due to the sharp increases in Internet travel advertising expected over the coming years.

Tags: ipo, otas