HOTELMARKETING.COM

Expedia’s profit jumps with strength overseas

May 02, 2008 | Online Travel

Expedia Inc.'s profit climbed 48% as the online travel agency enjoyed strong bookings and a surge in European sales. Hotel revenue rose 22%, largely on increased room nights. Expedia hasn't seen its customers cut back much in their travel spending so far despite the credit crunch and airline ticket prices that have been surging with oil prices.

Expedia reported net income of $51.3 million, or 17 cents a share, compared with $34.8 million, or 11 cents a share, a year earlier. Revenue rose 25% to $687.8 million.

Gross bookings rose 20%, with North America bookings up 15%. Europe bookings rose 34%, with nine percentage points coming from the weaker dollar.

Hotel revenue rose 22%, largely on increased room nights. Air revenue rose 18% on higher ticket sales.

Expedia hasn’t seen its customers cut back much in their travel spending so far despite the credit crunch and airline ticket prices that have been surging with oil prices. But the company has been making efforts to increase its offerings abroad, where its operations have been proving more profitable, helping to lower its dependence on the U.S. economy.

Get the full story at The Wall Street Journal (free content)

Visit our sponsors: