Expedia, Inc. Reports 16 percent Revenue Growth in Q2 Jul 25th 2013, 16:51
Expedia, Inc. has reported revenue growth of 16 percent year-over-year for the second quarter, ended June 30, 2013. The company attributed the growth to a rise in hotel room nights, as well as advertising and media revenue generated by its recent acquisition of a majority interest in Trivago GmbH, a hotel metasearch company.
Room nights grew 19 percent year-over-year, driven by continuing growth at Brand Expedia and eLong, according to the company, which grew Brand Expedia quarterly package revenue 26 percent one quarter after moving to the new package platform.
Gross bookings increased 13 percent (excluding foreign exchange) for the second quarter of 2013, primarily driven by the hotel room nights increase, which in turn is due to momentum at Brand Expedia and eLong as well as a 7 percent increase in air tickets, the company said.
For the second quarter of 2013, average daily room rates and average airfares were essentially flat year-over-year. Air tickets sold grew by 7 percent year-over-year, primarily due to growth at Egencia. Domestic bookings increased 7 percent, and international bookings increased 23 percent (excluding foreign exchange) for the second quarter of 2013. International bookings totaled $4.3 billion for the second quarter of 2013, accounting for 42 percent of worldwide bookings, versus 39 percent in the prior year.
Domestic revenue increased 10 percent, and international revenue increased 24 percent (excluding foreign exchange) for the second quarter of 2013. International revenue equaled $555 million for the second quarter of 2013, representing 46 percent of worldwide revenue versus 43 percent in the prior year.
Revenue as a percentage of gross bookings (revenue margin) was 11.9 percent for the second quarter of 2013, an increase of 30 basis points compared to the second quarter of 2012. The increase primarily relates to a favorable mix shift to the company’s higher margin products, including hotel, as well as advertising and media revenue, partially offset by mix shifts within the hotel product. “We knew we were facing second quarter headwinds and those which we expected, as well as some we didn’t, materialized. Despite this, we remain confident about our long-term strategy,” said Dara Khosrowshahi, Expedia’s president and chief executive officer. “We see continued return on our core brands’ technology investments, broader adoption of Expedia Traveler Preference Program, momentum in our recent acquisitions and emerging markets as well as exciting traction in one of travel’s fastest growth channels mobile.”
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