LOW cost positioning in times of financial stress has helped Priceline.com – which features both set pricing and an auction system – record spectacular year-on-year growth for the March quarter.
Gross bookings for the US-based company increased 76% while net profit was up 76% to US$37.3m. Its international businesses played a major role in the result with both Booking.com (Europe) and Agoda.com (Asia) performing strongly.
“With economic pressures mounting as we entered 2008, we believe that our money-saving ‘Name Your Own Price’ services and our value brand positioning made priceline.com attractive to budget-conscious travellers,” said Priceline.com President and Chief Executive Officer Jeffery H. Boyd.
“While we are concerned about the health of the economy and the impact of high oil prices on the financial health of the airline industry, we believe that consumers value our low price services.” Boyd expects the strong performance to continue through 2008. Travel Trends: May 14, 2008