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.