Onlline Travel spots in a decline?

Just read in the business section of the paper today that many online travel sites are taking a huge hit and their stocks are declining - Expedia, Trip Advisor and especially Priceline.

Do you think this is due to the economic situation in the US and Europe or do you think that, like the housing market, these types of sites were in a bubble and now that bubble is bursting?

I don't usually use these sites but I did use Expedia to book my local airfare in Mexico (could not pass up the AARP discount).

A few years ago, you would read that "brick & mortar" travel agencies were hurting due to the online travel sites but now I have started to see some articles about folks going back to the b&m agencies for the personal service.

I wonder if Priceline's decline is because they killed off the Negotiator?

Could be - I don't think he survived that bus crash off the bridge!

I can guess that the extensive competition splits the profits into shards today. There are so many 3rd party booking sites and few offer personal service. Countless complaints on oodles of travel forums...the biggest complaint is the lack of instant confirmation. In the long-run, purchases might end up costing LOTS more than booking direct.
I like LL because he package is already there--I'm willing to do auctions due to my flexibility but I have done Buy Now when I'm not.

I have been using LL to book my trips for the past few years and when I have booked a trip outside of LL (LL did not have anything in the area I wanted to go), I booked directly with the hotel I was going to. I have always found that Expedia, etc. have always been more expensive than the actual airline or hotel's own site.