Speaking during a conference call to discuss the company's fourth-quarter results, President and Chief Executive Dara Khosrowshahi said executives decided it was worth increasing Expedia's investments in the areas last year because they are key to the company's growth.

Expedia will make similar investments this year because they're good for the long term, Khosrowshahi said. The company is positioning itself for what it hopes will be a "great 2007 and beyond," he said.

The company's selling and marketing expenses rose 20% in the fourth quarter to $155.3 million. The expenses as a percentage of revenue were 31.4%, compared with 29.4% the year earlier, an increase Expedia attributed to increased personnel costs.

Expedia's general and administrative costs rose 39% to $65.3 million. The expenses as a percentage of revenue were 13.2%, compared with 10.7% in the year earlier period.
Technology and content expenses were $30.9 million, up from $23.3 million in the year earlier period. They also rose as a percentage of revenue, to 6.3% from 5.3%.

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