International Focus pays Off For Priceline

Priceline CEO Jeffery Boyd
Priceline CEO Jeffery Boyd

The Priceline.com business has passed a tipping point with international revenues exceeding those generated in its home market of the United States, a trend that seems certain to continue.

International contributed US$374.9m out of the US$731m in revenue Priceline recorded in the three months to December 31, 2010.

Revenue from international brands such as Booking.com and Agoda.com grew 75% on a local currency basis.

Similar growth rates are being targetted by the company for the first quarter of 2011.

Priceline President and CEO, Jeffery H. Boyd, says “economic growth and rapid online adoption are tailwinds for the business” in markets such as Asia-Pacific and South America.

To put the result in context, rival Expedia’s international bookings increased 19% excluding foreign exchange for the fourth quarter 2010, a period when its US domestic revenue reached US$477m compared with international revenue of $331m.

Expedia’s stock price has fallen from around US$26 to US$20 since announcing its result on Feb 10.

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