Expedia 2008 Annual Report Download - page 4

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rentals, and expand into additional markets such as Japan and China. In total, advertising and media revenue
grew a robust 55% in 2008, accounting for 10% of our worldwide revenues.
During these difficult times, we are fortunate to have employees willing to take up the challenge of
making our business stronger with fewer resources at hand and it is their dedication and desire to succeed that
continuously moves us forward. The company remains committed to attracting and retaining bright, creative
people who desire interesting work and the job satisfaction that comes from working alongside other smart
people for the industry leader.
In this type of economic environment, companies have a tendency to focus almost solely on near-term
challenges. And while Expedia is certainly determined to execute effectively in the here and now, the company
is primarily focused on growing its leadership position over the long term. This approach may mean sacrificing
short-term profit, as in the case of reducing fees, but these are the right things to do for our long-term
stockholders and for long-term stockholder value.
Stockholders should take comfort in knowing that we will be good stewards of their capital — exercising
extreme diligence in evaluating acquisition returns, identifying and realizing cost savings throughout all areas
of the business, appropriately rewarding our employees and management for performance and judiciously
allocating capital to its best possible use.
We’ll continue to speak with our stockholders in a forthright manner about our business, highlighting
both the risks and opportunities therein, and providing meaningful disclosures to enable the most fulsome
assessment of our prospects. We are confident that over time we’ll attract investors consistent with our values
and goals.
We are clearly the most diversified online travel company, with revenues from transactions and
advertising across a strong portfolio of leading consumer brands. As we’ve said, the test for us is to emerge
out of this period of economic difficulty all around us with compelling strength. That we will do because we
will deliver the best customer experience, and all our constituencies — travelers, suppliers, advertisers,
employees and stockholders — will come to know that as our singular focus over the next years.
Sincerely, Sincerely,
Barry Diller
Chairman & Senior Executive
Dara Khosrowshahi
President & CEO