Stock in Online Travel Sites Take Hit after Move by Continental Airlines.

Byline: Andrea Ahles

Oct. 25--FORT WORTH, Texas--Shares of online travel sites plummeted Wednesday after Continental Airlines announced that it will eliminate airline ticket commissions paid to Internet travel reservations companies.

In a move to cut costs and hopefully drive more customers to its own Web site, the airline said the commission change affects all Continental tickets booked on the Internet but will not affect tickets sold through traditional travel agents.

Fearing that other airlines may follow Continental's move, investor shares of Fort Worth-based Travelocity dropped 29 percent, or $5.83, closing at $14.07, and Expedia stock slid almost 11 percent, or $3.37, closing at $28.46.

Neither online travel company would comment on Continental's commission cuts.

Analysts were not surprised by the move given the difficult travel market after the Sept. 11 terrorism attacks. Airlines have continually cut ticket commissions to travel agencies for several years, forcing the agencies to charge service fees.

In March, Northwest Airlines was the first carrier to cut Internet ticket commissions. The airline had paid Web sites a 5 percent com- mission, capped at $10, for each airline ticket sold through United States and Canadian sites.