Global Hotels Boom, Air Crashes in Good Expedia Result

After years of trying, Expedia, for so long the quintessential American online company, is set to become truly international. Its latest results reveal Expedia’s international revenue grew an explosive 45% in April, May and June, reaching US$437 million, compared with US revenue growth of  10% during the quarter to US$587 million.

At this rate it won’t be long until international is worth more to the company than its US operations. Maybe it already is.  Booming hotel sales (+21% room nights) drove the impressive Expedia result.

Overall revenue was up 23%, breaching US$1 billion in a quarter for the first time. “Combined gross bookings growth for Hotels.com and Venere.com accelerated to 54% year on year,” Expedia said. The primary negative was air where ticket sales were down 3%. Meanwhile, Expedia’s companies ramped up marketing, spending 33% more than the comparable period in 2010. This was “primarily driven by increases in online marketing expenses at Hotels.com and TripAdvisor.com.” Selling and marketing costs are now 38.2%, up from 35.2% a year ago. However Expedia’s revenue margin increased 40 basis points to 12.9% year on year.

Expedia shares have increased around 50% in value since March and are now trading at around $30 on Nasdaq.

Share and Enjoy: