Travel reservation website Priceline.com (NASDAQ:BKNG) released earnings, and profits were up 24%. The company showed increased bookings, and strength both in Asia and Europe. While competitor Orbitz (UNKNOWN:OWW.DL) also jumped up yesterday on dramatically better-than-expected earnings, Orbitz is only a fraction of the market cap of Priceline, which is far and away the big dog in the industry.

In this video, Motley Fool analyst Ron Gross talks with host Chris Hill about Priceline, and where the company should go from here. Ron looks at the idea of Priceline acquiring smaller competitors such as Orbitz, but thinks the company would be better served by just continuing to execute as it has been.

With Priceline's stock approaching $1,000 per share, many investors get sticker shock, but Ron reminds investors not to focus on price per share, but to keep valuation in mind, instead. He notes that, at 25 times earnings, the company isn't nearly as pricey as many think, and tells investors that in his opinion, the company is doing very well.