Expedia Inc. (EXPE), one of the largest online travel companies in the world, has released the fall issue of the Expedia Travel Trendwatch. Other than the usual bargains and offers for the holiday season, this issue is a testament to the continued weakness in travel sales.

It now appears that most of the special offers announced for the summer season are likely to continue through the holidays.

Business travel remains particularly weak, with the softness bringing significant declines in air + hotel package prices. A company survey indicates a 29% year-over-year decline in New York , 22% in Los Angeles and 17% in Chicago . This has prompted 22% of Expedia business travelers surveyed to expand their business trips for leisure purposes.

Domestic air fares are down 17% year over year for leisure travelers in the Nov 23-30 period.

The company is also promoting short getaways by road that would help consumers partake of special hotel discounts at Boston (down 19% from last fall), Aspen (down 11%) and Vermont (down 9%).

Last month, Expedia and the National Park Foundation also announced vacations at America ’s National Parks featuring the national parks of Grand Canyon, Yellowstone, Glacier, Olympic and Yosemite . The company is providing information about the location, topography, wildlife and plant life, as well as nearby places to stay and things to do. The program focuses on short or weekend getaways.

The company reported strong results in the last quarter, beating the consensus estimate. Although bookings continue to be impacted by the recession, management’s promotional measures should improve the conversion rate. However, the declining average daily rates remain something to watch.

We reiterate our Outperform rating on the stock.

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