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Online boom fuels Cendant growth
A strong performance in its travel business – including a 47% growth in online gross bookings – saw Cendant increase its revenue in the second quarter of the year by 8% over the corresponding 2004 period.
Total revenue hit $4.7 billion with its travel businesses, including Galileo and cheaptickets.com, contributing $661 million – a 48% increase on last year. Cendant said the growth was largely due to the acquisition of Orbitz, Gullivers and ebookers which generated an additional $202 million.
“This is despite costs incurred to integrate these businesses,” a statement said.
The company said the acquisitions are expected to add $125 million to its earnings before tax as synergies are realised.
“Apart from these acquisitions, revenue in our owned travel agency businesses increased $14 million,” the statement continued. “This was primarily driven by 47% growth in online gross bookings, substantially at CheapTickets.com, which also achieved higher margins.”
Revenue from its GDS and supplier services grew 3% to $13 million largely due to a 6% increase in global GDS segments and increased hosting services.
In its car hire businesses – Avis and Budget – revenue grew 10% due to an increase in rental day volume of 15% although that was partially offset by a 5% decrease in price.
Report by Steve Jones
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