Stock Watch: Travelocity Gains, Priceline Falls on Airline Alliance, Inc. fell 3 to 69 7/8 early Tuesday, after the name-your-price service announced the finalization of an airline-ticket marketing alliance with (Nasdaq: TVLY). Travelocity, meanwhile, rose 1/16 to 29 13/16.

“The alliance will make finding the best airline fares fast and easy,” the companies said. Customers who prefer specific airlines or travel times can pick them from Travelocity, while those who are more flexible can make offers for tickets on Priceline. The companies said they will get “incremental revenue” each time they facilitate the sale of the other’s products.

“This powerful and seamless combination of Web sites will make it even easier for all air travelers, regardless of budget, to get the tickets they want at prices within their means,” said Terrell B. Jones, president and chief executive officer of

Effective immediately, travelers visiting both sites will see links to the other. Anyone looking up flights and fares on Travelocity will be given the option of making an offer for a ticket through Priceline. Meanwhile, Priceline’s site includes information about Travelocity, and customer itinerary information can be transferred between the two sites.

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