Expedia is poised to report a 17% increase in bookings in its second quarter of 2010 with international bookings growth of 25%, according to market analyst Benchmark.
Analyst upbeat about Expedia performance
Expedia is poised to report a 17% increase in bookings in its second quarter of 2010 with international bookings growth of 25%, according to market analyst Benchmark.
The online travel giant, which is due to report its second quarter results on July 29, is expected to report growth despite the impact of the volcanic ash cloud and weak Euro.
Benchmark forecast Expedia will show a 9% increase in year on year revenues and 1% Operating Income Before Amortization (OIBA) growth.
Domestic US travel spend continued to improve in June on May and April levels and the market has seen an increase in air ticket prices, a small upturn in hotel occupancy and improved transaction volumes.
The Benchmark forecast predicted gross bookings for Exedia will increase to $6 billion, with domestic bookings up 14% and international bookings up 25%.
Net revenue will be $838 million, up 9% year on year, and OIBA will be up 1% to $214 million, “impacted by anticipated further deleveraging and the travel interruption from the volcano”, the analyst said.
Benchmark reiterated its “buy” rating for Expedia and set a target price of $31.
