Expedia Sees 2Q Gains in Room Nights, EBITA, Gross Bookings
By James Shillinglaw
July 26, 2012 10:02 PM
Expedia, Inc., the closely watched online travel agency, reported room nights booked grew 22 percent in the second quarter compared with the same period last year to a record 30 million room nights driven by 16 percent year-over-year growth in domestic room nights. During the quarter, Expedia expanded its Egencia corporate travel unit by completing the acquisition of VIA Travel, the largest travel management company in the Nordics.
Expedia also said adjusted EBITDA increased 18 percent year-over-year driven by strong revenue performance. In addition, adjusted earnings per share increased 24 percent compared to second quarter 2011.
Gross bookings increased 13 percent (16 percent excluding foreign exchange) for the second quarter of 2012, primarily driven by a 22 percent increase in hotel room nights. For the second quarter, average daily room rates declined 1 percent, and average airfares grew 5 percent year-over-year. Domestic bookings increased 13 percent and international bookings increased 12 percent (20 percent excluding foreign exchange) for the second quarter. International bookings totaled $3.4 billion for the second quarter of 2012, accounting for 38 percent of worldwide bookings consistent with the prior year.
Revenue increased 14 percent (18 percent excluding foreign exchange) for the second quarter, driven by an increase in hotel room nights stayed partially offset by a decrease in revenue per room night and revenue per ticket. Worldwide hotel revenue increased 16 percent for the second quarter of 2012 driven by a 22 percent increase in room nights stayed partially offset by a 5% decrease in revenue per room night. Revenue per room night decreased primarily due to changes in Expedia’s hotel product mix, impacts from foreign currency, accruals for loyalty programs at Brand Expedia and Hotels.com and discounting at the Hotwire brand.
Worldwide air revenue decreased 8 percent for the second quarter due primarily to an 11 percent decrease in revenue per ticket partially offset by a 3 percent increase in air tickets sold. Revenue per ticket declined due to lower net supplier economics and impacts from foreign exchange partially offset by certain regional and interline consumer booking fees. All other revenue (excluding hotel and air) increased 17 percent for the second quarter of 2012 through strong growth in corporate travel fees.