Priceline 2011 Annual Report Download - page 41

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40
our Booking.com and Agoda businesses, as well as higher average daily rates ("ADRs") charged for hotel stays and growth in
international car reservations for our rentalcars.com business, which was acquired in May 2010. Domestic gross bookings
increased by 14.0% for the year ended December 31, 2011, compared to the same period in 2010, primarily due to growth in
gross bookings from our price-disclosed airline ticket and hotel room night reservation services and our Name Your Own Price®
hotel room night and airline ticket reservation services. Higher ADRs drove growth in gross bookings related to our Name
Your Own Price® hotel business despite a modest year-over-year decline in Name Your Own Price® hotel room night
reservations for the year ended December 31, 2011.
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, 2011 and 2010 were as follows (numbers may not total due to
rounding):
Agency
Merchant
Total
Year Ended December 31,
2011
$17.610 billion
4.048 billion
$21.658 billion
2010
$10.781 billion
2.864 billion
$13.646 billion
Change
63.3%
41.3%
58.7%
Agency gross bookings increased 63.3% for the year ended December 31, 2011, compared to the same period in 2010,
due to growth in the sale of Booking.com hotel room night reservations. Our U.S. priceline.com business experienced growth
in reservations of agency price-disclosed hotel room nights, airline tickets and rental car days. Merchant gross bookings
increased 41.3% for the year ended December 31, 2011, compared to the same period in 2010, due to an increase in gross
bookings from our Agoda hotel room night reservation service, our rentalcars.com rental car reservation service, our
priceline.com merchant price-disclosed hotel room night reservation service and our Name Your Own Price® hotel room night,
airline ticket and rental car reservation services. Higher ADRs drove growth in gross bookings related to our Name Your Own
Price® hotel business despite a modest year-over-year decline in Name Your Own Price® hotel room night reservations for the
year ended December 31, 2011.
Year Ended
December 31, 2011
December 31, 2010
Hotel Room
Nights
141.6 million
92.8 million
Rental
Car Days
23.8 million
16.3 million
Airline
Tickets
6.2 million
5.9 million
Hotel room night reservations sold increased by 52.6% for the year ended December 31, 2011, over the same period in
2010, principally due to an increase in the sale of Booking.com, Agoda and priceline.com price-disclosed hotel room night
reservations, partially offset by a modest decline in Name Your Own Price® hotel room night reservations. Booking.com, our
most significant brand, currently includes over 185,000 hotels and accommodations on its website as compared to about
120,000 hotels and accommodations last year (updated hotel counts are available on the Booking.com website). Booking.com
has added hotels over the past year in its core European market as well as higher-growth markets such as North America (which
is a newer market for Booking.com), Asia-Pacific and South America. An increasing amount of our business from a destination
and point-of-sale perspective is conducted in these newer markets which are growing faster than our overall growth rate. Our
U.S. priceline.com price-disclosed hotel room night reservations benefited from the integration of U.S. hotels from the
Booking.com extranet on the priceline.com website.
Rental car days sold increased by 45.6% for the year ended December 31, 2011, over the same period in 2010,
primarily due to the inclusion of rental car day reservations from rentalcars.com, which we acquired in May 2010, as well as an
increase in Name Your Own Price® rental car reservations.
Airline tickets sold increased by 5.7% for the year ended December 31, 2011, over the same period in 2010, due to an
increase in both price-disclosed and Name Your Own Price® airline ticket reservations.