Expedia gross bookings grow 11% in Q3 2017
Expedia reported gross bookings of USD 22.2 billion in the third quarter of 2017. Revenue increased 15% YoY to USD 3 billion, of which HomeAway took up USD 305 million, a 45% rise.
Expedia announced its financial results for the third quarter ended September 30, 2017.
* Gross bookings, including HomeAway, increased USD 2.2 billion or 11% year-over-year to USD 22.2 billion. Revenue increased 15% year-over-year to USD 3.0 billion.
* HomeAway delivered USD 305 million of revenue, representing an increase of 45% year-over-year.
* Room nights stayed, including HomeAway, increased 16% year-over-year.
* Room nights stayed for the global growth brands of Brand Expedia, Hotels.com, EAN and Egencia combined increased 18% year-over-year, with HomeAway room nights stayed up 36% year-over-year.
* Adjusted EBITDA grew 6% year-over-year during the third quarter, including trivago's USD 8 million loss and an estimated negative impact of approximately USD 15 million to USD 20 million from the recent natural disasters.
* The Expedia, Inc. global lodging portfolio increased to over 500,000 properties available as of September 30, 2017, up 57% year-over-year. HomeAway offers nearly 1.5 million online bookable listings.
Gross Bookings & Revenue
Total gross bookings increased 11% (including negative impact from the natural disasters and 1 percentage point of positive foreign exchange impact), driven primarily by growth in Brand Expedia, HomeAway, Hotels.com and EAN. Domestic gross bookings increased 5% and international gross bookings increased 22% (including 3 percentage points of positive foreign exchange impact). International gross bookings totaled USD 8.7 billion and accounted for 39% of worldwide bookings, compared with 35% in the third quarter of 2016.
Revenue increased 15% (including negative impact from the natural disasters and 2 percentage points of positive foreign exchange impact), driven primarily by growth in Brand Expedia, HomeAway, EAN and trivago. Domestic revenue increased 9% and international revenue increased 23% (including 7 percentage points of positive foreign exchange impact). International revenue equaled USD 1.4 billion, representing 47% of worldwide revenue, compared to 44% in the third quarter of 2016.
Product & Services Detail
Lodging accounted for 71%, advertising and media accounted for 10%, air accounted for 6% and all other revenues accounted for the remaining 13%.
Lodging revenue, which includes hotel and HomeAway revenue, increased 15% in the third quarter of 2017 on a 16% increase in room nights stayed driven by growth in Brand Expedia, HomeAway and EAN, partially offset by a 1% decrease in revenue per room night.
Air revenue decreased 7% in the third quarter of 2017 on a 10% decrease in revenue per ticket partially offset by a 4% increase in air tickets sold.
Advertising and media revenue increased 24% in the third quarter of 2017 due to continued growth in trivago and Expedia Media Solutions. All other revenue increased 21% in the third quarter of 2017 reflecting growth in car rental and travel insurance products.
As of September 30, 2017, Expedia’s global lodging portfolio consisted of over 500,000 properties available, including over 95,000 HomeAway listings on 28 Brand Expedia, Orbitz, Travelocity, CheapTickets and ebookers points of sale.
For Hotels.com, approximately 45% of global transactions and 55% of traffic are now coming from mobile devices.
In August 2017, Trivago acquired the assets of tripl GmbH, to enhance trivago's product with personalization technology using big data and a traveler-centric approach.
Trivago continued to optimize its product for mobile device usage, which contributed to mobile revenue share reaching over 60% in the third quarter of 2017.
HomeAway continues to roll out updates of its secure messaging platform for its North American and European sites, with pre-booking communications now facilitated through the secure messaging system for over 65% of listings.
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