03 November 2008

Expedia Reports slight fall in Profits

Expedia's Q3 earnings report is in and it makes for good healthy reading for the OTA.

Revenues across the board are up in every geography. Reflecting past activity through September their numbers showed that gross bookings increased 7% to $5.4bn (£3.3bn), with North America bookings up 1%, Europe bookings up 18% and other bookings (primarily corporate travel unit Egencia and Asia Pacific operations) up 25%.

Given the fall in US transactions for the period eeking out a 1% gain is very good. The other geographies probably still reflect an expanding market share for online rather than anything else.

Interestingly there is one metric that shows the weakness in the market. Worldwide merchant hotel revenue rose 7% due to a 15% increase in room nights stayed, including rooms delivered as a component of packages, partially offset by a 6% decrease in revenue per room night. Again this is healthier than what else is out there. This indicates that Expedia's contracts are insulating them from some of the rate falls that others have been seeing.

No mention of the ongoing ugly fight between Expedia and Ryanair.



"What happened between Expedia and RyanAir? Did EXPEDIA try to scam them like they do with their customers? Customers are being scammed by EXPEDIA. Source: a website called victims of expedia."


I am reluctantly publishing this comment because I believe in free speech. However in future I would ask people to leave comments with their names identified. I have removed the link. If the reader would like to go to the website I am sure you can find it. In future if a commentator would like to leave a message like this as Anon- then it could be a disgruntled ex-employee or something similar, such as a competitor. If you have a formal instance of a story you would like to share - then please submit this to the private address below. I am happy to investigate this however that is not the intent of this blog.

To answer the question posed by Anonymous, I refer you to a prior post:



No comments: