Expedia 2012 Annual Report Download - page 62

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Results of Operations
Revenue
Year ended December 31, % Change
2012 2011 2010 2012 vs 2011 2011 vs 2010
($ in millions)
Revenue by Segment
Leisure $3,739 $3,270 $2,891 14% 13%
Egencia 291 179 143 63% 25%
Total revenue $4,030 $3,449 $3,034 17% 14%
In 2012, revenue increased primarily due to an increase in hotel room nights stayed, partially offset by a
decrease in revenue per room night and revenue per ticket. Egencia’s acquisition of VIA Travel in the second
quarter of 2012 added approximately 2% to year-over-year growth to total revenue for 2012. In 2011, the
increase in revenue was primarily due to an increase in worldwide hotel revenue within our Leisure segment.
Worldwide hotel revenue increased 20% in 2012, primarily due to a 27% increase in room nights stayed,
partially offset by a 5% decrease in revenue per room night. Revenue per room night decreased primarily due to
changes in our hotel product mix, of which mix shift to regions with lower hotel economics is becoming a
significant component. Worldwide hotel revenue increased 18% in 2011 compared to 2010 primarily due to an
18% increase in room nights stayed.
Worldwide air revenue decreased 8% in 2012, due to a 14% decrease in revenue per air ticket, partially
offset by a 7% increase in air tickets sold. The increase in air tickets sold primarily relates to the VIA Travel
acquisition and was partially offset by volume pressure associated with a 4% increase in average ticket prices.
Revenue per air ticket declined in 2012 primarily due to lower net supplier economics, partially offset by
consumer and interline booking fees. Worldwide air revenue decreased 4% in 2011 compared to 2010 due to an
8% decrease in air tickets sold, partially offset by a 4% increase in revenue per air ticket.
The remaining worldwide revenue, other than hotel and air discussed above, which includes car rental,
advertising and media, destination services and fees related to our corporate travel business, increased by 20% in
2012 as compared to 2011, primarily through strong growth in corporate travel fees primarily due to the VIA
Travel acquisition as well as an increase in advertising and media and insurance revenue. The remaining
worldwide revenue increased by 8% in 2011 compared to 2010.
In addition to the above segment and product revenue discussion, our revenue by business model is as
follows:
Year ended December 31, % Change
2012 2011 2010 2012 vs 2011 2011 vs 2010
($ in millions)
Revenue by Business Model
Merchant $3,049 $2,572 $2,220 19% 16%
Agency 850 764 705 11% 8%
Advertising and media 131 113 109 16% 4%
Total revenue $4,030 $3,449 $3,034 17% 14%
The increase in merchant revenue in 2012 and 2011 was due to an increase in hotel revenue primarily driven
by an increase in room nights stayed.
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