Expedia sees Q2 growth after record room-night bookings

Expedia’s second-quarter revenue grew by 14% year on year to $1.04 billion, partly driven by a record number of room nights booked.

Overall bookings grew by 13% year on year. Room nights grew by 22% year on year to a record number of 30 million. This offset an 8% decrease in worldwide air revenue, even though average airfares grew 5% year on year and ticket sales grew by 3% mainly due to the acquisition of VIA Travel.

Despite the increase in room bookings, revenue per room night decreased by 5%. Expedia put this down to changes in the hotels it sold, the impact of foreign currency, accruals for loyalty programs and discounting at the Hotwire brand.

Expedia said revenue per airline ticket declined for reasons including foreign exchange rates, but these were partially offset by consumer booking fees.

Overall the revenue margin was up 11.6%. Of Expedia’s total revenue, hotel bookings made up 74%, air made up 9%.

Expedia’s income from continuing operations was up 20% to $105.2 million.

The brands included in the results are Expedia.com, Hotels.com, Expedia Affiliate Network and Egencia.

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