Orbitz 2008 Annual Report Download - page 48

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The table below shows our gross bookings and net revenue for the years ended December 31, 2007, 2006 and 2005:
Year Ended December 31,
Year Ended December 31,
2007
Successor
2006
Combined
$
Change
%
Change
2006
Combined
2005
Predecessor
$
Change
%
Change
(in millions) (in millions)
Gross bookings(a)
Domestic
Air $ 7,111 $ 6,610 $ 501 8% $ 6,610 $ 4,722 $ 1,888 40%
Non-air and other 2,282 2,138 144 7% 2,138 1,612 526 33%
Total domestic gross
bookings
9,393 8,748 645 7% 8,748 6,334 2,414 38%
International
Air 853 630 223 35% 630 493 137 28%
Non-air and other 545 402 143 36% 402 390 12 3%
Total international gross
bookings
1,398 1,032 366 35% 1,032 883 149 17%
Total gross bookings $ 10,791 $ 9,780 $ 1,011 10% $ 9,780 $ 7,217 $ 2,563 36%
Net revenue
Domestic
Air $ 305 $ 295 $ 10 3% $ 295 $ 268 $ 27 10%
Non-air and other 374 316 58 18% 316 274 42 15%
Total domestic net revenue 679 611 68 11% 611 542 69 13%
International
Air 70 60 10 17% 60 51 9 18%
Non-air and other 110 81 29 36% 81 93 (12) (13)%
Total international net
revenue
180 141 39 28% 141 144 (3) (2)%
Total net revenue $ 859 $ 752 $ 107 14% $ 752 $ 686 $ 66 10%
(a)
Gross bookings data for all periods presented in the table above exclude Travelbag, an offline U.K. travel business, that we sold in July 2007.
Comparison of the year ended December 31, 2007 to the year ended December 31, 2006
Gross Bookings
For our domestic business, which is comprised principally of Orbitz, CheapTickets and Orbitz for Business, total gross bookings increased $645 million, or
7%, during the year ended December 31, 2007 from the year ended December 31, 2006. Of the $645 million increase, $501 million was due to an increase in
domestic air gross bookings. Higher air transactions drove this increase. Non-air and other gross bookings increased $144 million, or 7%, during the year ended
December 31, 2007 from the year ended December 31, 2006. Higher gross bookings for dynamic packaging primarily drove this growth due to an increase in
volume and a higher average price per transaction. Growth in gross bookings for hotels also increased due to a higher price per transaction, primarily driven by
higher average daily rates ("ADRs") and a longer average length of stay.
For our international business, which is comprised principally of ebookers, HotelClub and RatesToGo, total gross bookings increased $366 million, or 35%,
during the year ended December 31, 2007 from the year ended December 31, 2006. Of this increase, $101 million, or 11 percentage points, was due to foreign
currency fluctuations. The remaining $265 million increase was due in part to a $168 million increase in international air gross bookings as a result of higher
transactions, which helped offset a slightly lower average price per air transaction. The remaining growth in non-air and other
41
Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008