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Expedia reports slight fall in profits.
Tuesday, 4th November 2008
Source : By Timothy O Neil-Dunne ~ T2Impact.com
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.

Cheers
Thanks for reading - private comments please to administrator@t2impact.com

T2Impact is a business development, technology and strategic consulting group focused on helping firms to accelerate their growth either in new geographies or with new products and services. Our name derives from the companys focus; accelerating time and getting from idea to impact quickly for its clients.

We provide a full line of strategic planning services, including marketing plan development, joint venture opportunity evaluation, market and competitive research, process re-engineering, business plan validation and execution. 

www.t2impact.blogspot.com


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