Further evidence that competition for online eyeballs is intensifying with the Priceline Group revealing that its digital advertising spend across all brands – Priceline.com, Booking.com, Agoda.com and Rentalcars.com – increased by 34% in the third quarter, up from US$280m in 2011 to US$375m in 2012. This follows news that Expedia is now spending more than $US500m on sales and marketing each quarter.
Priceline result highlights for the third quarter ending September 30 include:
- Revenues of US$1.7 billion, a 17.4% increase over a year ago
- International operations contributed 70% of revenues or US$1.2 billion, a 30.6% increase versus a year ago
- The Group’s gross profit for the 3rd quarter was $1.4 billion, up 26.9% increase from the prior year.
“The Priceline Group delivered solid growth and operating results in the 3rd quarter as growth in the second half of the quarter in our key European market exceeded our forecast,” said Jeffery H. Boyd, President and Chief Executive Officer of The Priceline Group.
“Globally our hotel business grew room nights by 36% over the same period last year, compared to 39% growth in the second quarter.
“Our rental car business grew rental car days by 35% over last year, an acceleration from 29% in the second quarter, led by improving results at priceline.com and continued strong growth from rentalcars.com.”