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Expedia Inc reports profits down in 2006
Expedia Inc saw a $25 million drop in net profits to $390 million in 2006.
A decline in air revenues was offset by a rise in merchant hotels revenues.
Overall revenue increased by 6%, with international growth of 24% making up for flat US domestic growth.
Worldwide air revenues were down by 14% due to a 13% drop in revenue per ticket and a 2% decline in the number of tickets sold. This reflected declining payments from airlines and GDSs.
“Excluding merchant air, worldwide air tickets sold would have increased 4%,” the company said. “Lower availability of merchant air inventory also impacted our packages revenue, which increased 1%.”
Merchant hotel revenue was up by 13%, driven by a 10% rise in room nights stayed as well as a 2% rise revenue per room night.
Expedia chairman Barry Diller described 2006 as a year which begun with “adversity” and was one of “change, challenge and investment”.
CEO and president Dara Khrosrowshahi said: “We enter 2007 with online travel’s vanguard brands, more than 50 unique points of sale across the globe and an intense commitment to innovation, but above all, with a firm eye toward re-accelerating growth at our flagship point of sale, Expedia.com.”
by Phil Davies
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