• Room night growth excluding eLongTM accelerated to 35% year-over-year, with domestic and international room nights growing 24% and 50% year-over-year, respectively.
• Gross bookings excluding eLong increased 20% and revenue excluding eLong increased 15% year-over-year. Excluding the impact of foreign exchange, gross bookings increased 28% and revenue increased 25% year-over- year.
• Strong performance in the Core OTA segment drove growth in Expedia® excluding eLong Adjusted EBITDA of 12% year-over-year.
• Advertising & Media business excluding eLong delivered over $515 million in net revenue on a trailing twelve months basis, an increase of 27% year-over-year, driven by growth in trivago and Expedia Media Solutions.
• During the second quarter of 2015, Expedia added nearly 27,000 properties to its global supply portfolio, which now stands at approximately 257,000 properties available on Expedia, Inc. sites.
• In May 2015, Expedia sold its 62.4% equity stake in eLong, Inc. (“eLong”) for approximately $671 million to several purchasers including Ctrip.com International, Ltd. (“Ctrip”) and Expedia and Ctrip also reached agreement on cooperation for certain travel products in specified geographic markets.
Gross Bookings & Revenue
Total gross bookings increased 20% (28% excluding foreign exchange) in the second quarter of 2015, driven by growth in the Core OTA business, including strong performance at Brand Expedia and Hotels.com.
Domestic gross bookings increased 18% and international gross bookings increased 25% (44% excluding foreign exchange). International bookings totaled $5.8 billion, accounting for 38% of worldwide bookings, compared to 37% in the second quarter of 2014.
Total revenue increased 15% (25% excluding foreign exchange) in the second quarter of 2015, driven primarily by the Core OTA business, including strong performance at Brand Expedia and Hotels.com, as well as at trivago.
Domestic revenue increased 15% and international revenue increased 14% (33% excluding foreign exchange). International revenue equaled $745 million, representing 45% of worldwide revenue, unchanged from the second quarter of 2014.
Product & Services Detail
As a percentage of total worldwide revenue in the second quarter of 2015, hotel accounted for 70%, advertising and media accounted for 9%, air accounted for 8% and all other revenues accounted for the remaining 13%. Hotel revenue increased 14% in the second quarter of 2015 on a 35% increase in room nights stayed driven by Hotels.com and Brand Expedia, partially offset by a 16% decrease in revenue per room night.
Air revenue increased 14% in the second quarter of 2015 due to a 26% increase in air tickets sold, partially offset by a 10% decrease in revenue per ticket. Advertising and media revenue increased 18% in the second quarter of 2015 due to continued strong growth in trivago and Expedia® Media Solutions. All other revenue increased 18% in the second quarter of 2015 primarily on growth in car rental and travel insurance products.
Recent Highlights
Global Presence
• Expedia, Inc. sold its 62.4% equity stake in eLong for approximately $671 million to several purchasers including Ctrip. Expedia and Ctrip also reached agreement on cooperation for certain travel products in specified geographic markets. The transaction closed on May 22, 2015.
• Hotels.com signed an Asia Pacific wide marketing partnership with Visa, giving Visa cardholders in APAC access to targeted accommodation offers and discounts. In addition, Hotels.com signed local marketing partnerships with DBS Bank and Standard Chartered Bank in Hong Kong.
• Egencia signed agreements spanning the globe including: new customer Dixons Carphone, Europe's leading specialist electrical and telecommunications retailer and services company; renewal Peugeot S.A., leading French, car manufacturer; and BOC Australia, a member of The Linde Group, a supplier of compressed and bulk gases, chemicals and equipment around the globe.
Supply Portfolio
• During the second quarter of 2015, Expedia added nearly 27,000 properties to its global supply portfolio, which now stands at approximately 257,000 properties available on Expedia, Inc. sites.
• The company substantially completed the migration of Wotif Group’s prior lodging relationships into single contracts. These properties strengthen Expedia’s Australia, New Zealand and Asia Pacific portfolio, and are now accessible for bookings across the Expedia, Inc. brands.
• Expedia, Inc. entered into commercial agreements with a number of airlines, including Qatar Airways and China Southern Airlines.
• Expedia, Inc. entered into a global, multi-year agreement with Europcar covering their Europcar, Keddy and Interrent brands across the Expedia, Inc. brands.
• Expedia Lodging Partner Services and Sabre Hospitality Solutions, entered into an agreement to facilitate making SynXis Central Reservation hotels available via Expedia’s global portfolio of brands.
Technology Innovation
• Expedia, Inc. rolled out its Real-time Feedback tool to hotel partners across the globe. Real-time Feedback, available through Expedia’s hotel-facing tool, Expedia® PartnerCentral, is designed to help hoteliers maximize the guest experience and improve traveler review ratings.
• Expedia mobile app customers can now book local activities and ground transportation from their phone with the Expedia app on iOS and Android. Expedia also updated its app for the Windows Phone to a native app experience.
• The company completed the migration of its European hotel specialist Venere.com to the Hotels.com platform.
