Priceline 2010 Annual Report Download - page 122

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Gross bookings resulting from hotel room night reservations, rental car days and airline tickets sold through
our agency and merchant models for the years ended December 31, 2010 and 2009 were as follows (numbers may
not total due to rounding):
Year Ended December 31,
2010 2009 Change
Agency $10.781 billion $7.191 billion 49.9%
Merchant 2.864 billion 2.119 billion 35.2%
Total $13.646 billion $9.310 billion 46.6%
Agency gross bookings increased 49.9% for the year ended December 31, 2010, compared to the same
period in 2009, due to growth in the sale of Booking.com and priceline.com hotel room night reservations and an
increase in average airline fares. Our U.S. agency hotel room reservations benefited from the integration of U.S.
hotels from the Booking.com extranet into the priceline.com website. Merchant gross bookings increased 35.2% for
the year ended December 31, 2010, compared to the same period in 2009, due to increases in the sale of Agoda
merchant price-disclosed hotel room night reservations and priceline.com merchant price-disclosed and Name Your
Own Price® hotel room night reservations and the inclusion of gross bookings from TravelJigsaw, which was
acquired in May 2010.
Year Ended
Hotel Room
Nights
Rental
Car Days
Airline
Tickets
December 31, 2010 92.8 million 16.3 million 5.9 million
December 31, 2009 60.9 million 11.2 million 5.9 million
Hotel room night reservations sold increased by 52.3% for the year ended December 31, 2010, over the
same period in 2009, primarily due to an increase in the sale of Booking.com agency room night reservations, as
well as an increase in the sale of Agoda price-disclosed room night reservations, priceline.com price-disclosed room
night reservations and Name Your Own Price® room night reservations.
Rental car days sold increased by 45.3% for the year ended December 31, 2010, over the same period in
2009, primarily due to the inclusion of rental car day reservations sold by TravelJigsaw, which we acquired in May
2010, and increases in the sale of priceline.com price-disclosed rental car day reservations.
Airline tickets sold were flat for the year ended December 31, 2010, over the same period in 2009, as a
decline in Name Your Own Price® airline tickets was partially offset by a slight increase in price-disclosed airline
tickets.
Revenues
We classify our revenue into three categories:
x Merchant revenues are derived from transactions where we are the merchant of record and therefore
charge the customer’s credit card for the travel services provided. Merchant revenues include (1)
transaction revenues representing the selling price of Name Your Own Price® hotel room reservations,
rental cars and airline tickets and price-disclosed vacation packages; (2) transaction revenues
representing the amount charged to a customer, less the amount charged by suppliers in connection
with (a) the hotel room reservations provided through our merchant price-disclosed hotel service in the
U.S. and at Agoda, and (b) the rental car reservations provided through our merchant semi-opaque
rental car service at TravelJigsaw (which allows customers to see the price, car type and location of the
reservation prior to purchase, but not the identity of the supplier); (3) customer processing fees charged
in connection with the sale of Name Your Own Price® hotel room reservations. airline tickets and
rental cars and merchant price-disclosed hotel reservations; and (4) ancillary fees, including GDS
reservation booking fees related to certain of the services listed above.