Orbitz CEO Barney Harford said his company is seeing better results from HotelClub, its under-performing Asia Pacific accommodation website. “We’re feeling great about the progress of the HotelClub turnaround and are seeing promising growth,” he said.
But Mr Harford declined to back up his comments with figures. “We’ve made a decision – we’re not going to break out room night growth rates on a brand by brand basis.
“But what I would point to is the fact that we saw acceleration and good growth across all of our businesses in the portfolio. So I think we’re feeling great about the trends across the business including at HotelClub, (which has) a significant strategic focus on the Asia-Pacific region.
“I think one of the things that’s most important about HotelClub is the loyalty offering that we have there. We’re finding that program to be extremely successful.”
HotelClub has been struggling for a number of years and had its value written down by $US50 million to zero in the 2011 Orbitz full year results. It runs three websites: HotelClub.com, RatesToGo.com and AsiaHotels.com.
Meanwhile, Michael O. Randolfi, Chief Financial Officer at Orbitz, said in the first quarter “net revenue grew 7% year-over-year to UIS$202.9 million and adjusted EBITDA came in at $21.6 million, up 5% from the first quarter last year.”
He said the results was better than expected, “driven by significantly stronger performance than we had expected in the last 6 weeks of the quarter.
“Standalone hotel revenue was up 27% in the quarter. Total room night growth was 14%, with standalone room night growth coming in ahead of this” but was diluted by lower package sales.
- For an alternative perspective on the Orbitz results, read this story at Seeking Alpha.