Expedia 2011 Annual Report Download - page 56

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Gross Bookings and Revenue Margin
Year ended December 31, % Change
2011 2010 2009 2011 vs 2010 2010 vs 2009
($ in millions)
Gross Bookings
Leisure $26,567 $24,021 $20,428 11% 18%
Egencia 2,614 1,944 1,383 34% 41%
Total gross bookings $29,181 $25,965 $21,811 12% 19%
Revenue Margin
Leisure 12.3% 12.0% 12.9%
Egencia 6.9% 7.4% 7.8%
Total revenue margin 11.8% 11.7% 12.6%
The increase in worldwide gross bookings in 2011 as compared to 2010 was primarily driven by 18%
growth in hotel room nights and 5% in hotel ADRs. The increase in worldwide gross bookings in 2010 as
compared to 2009 was primarily due to a 14% growth in transactions, a 10% increase in average airfares and a
1% increase in hotel ADRs. Revenue margin for 2011 was essentially flat when compared to 2010. The decrease
in revenue margin in 2010 as compared to 2009 was primarily due to higher average air ticket prices.
Results of Operations
Revenue
Year ended December 31, % Change
2011 2010 2009 2011 vs 2010 2010 vs 2009
($ in millions)
Revenue by Segment
Leisure $3,270 $2,891 $2,635 13% 10%
Egencia 179 143 108 25% 32%
Total revenue $3,449 $3,034 $2,743 14% 11%
In 2011 and 2010, the increase in revenue was primarily due to an increase in worldwide hotel revenue
within our Leisure segment.
Worldwide hotel revenue increased 18% in 2011 compared to 2010 primarily due to an 18% increase in
room nights stayed. Revenue per room night was flat year over year. Competitive pricing actions on hotels and
packages as well as accruals for loyalty programs at Expedia and Hotels.com offset most of the 5% increase in
ADRs. Worldwide hotel revenue increased 11% in 2010 compared to 2009 primarily due to a 14% increase in
room nights stayed, partially offset by a 3% decline in revenue per room night.
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 decrease in air tickets sold was partially due to an
11% increase in average air ticket prices. Revenue per ticket increased in 2011 due to certain regional and
interline consumer booking fees and performance-based incentives, partially offset by lower net supplier
economics. Worldwide air revenue increased 12% in 2010 compared to 2009 due to an 11% increase in air
tickets sold and a 1% increase in revenue per air ticket.
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 8% in 2011 compared
to 2010 and 7% in 2010 compared to 2009.
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