The tough times continue for Orbitz while Priceline, which also owns Booking.com and Agoda.com, continues best of breed OTA performance. Orbitz recorded a net loss of almost US$10.8m for the three months to March 31, more than double the US$5.2m loss it recorded the previous year. The slower US domestic market hurt while its HotelClub business underperformed with “lower hotel volumes”. Room nights booked through Orbitz were down 2% year on year. Priceline did well, again with net income virtually doubling to US$104m. A big difference between the companies – apart from profitability – can be found in their marketing. Priceline boosted online ad spend 62% or $US72m to US$185m; offline remained static at US$11.6m. Orbitz spent US$65.4m on all marketing. Ergo, Priceline spent three times as much as Orbitz on marketing and clearly used the money very wisely. ls there a lesson there?
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