Expedia 2015 Annual Report Download - page 62

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Revenue
Year ended December 31, % Change
2015 2014 2013 2015 vs 2014 2014 vs 2013
($ in millions)
Revenue by Segment
Core OTA $5,877 $4,904 $4,069 20% 21%
trivago (Third-party revenue) 333 281 173 19% 62%
Egencia 400 400 365 0% 10%
HomeAway 20 — — N/A N/A
eLong 42 178 164 N/A 9%
Total revenue $6,672 $5,763 $4,771 16% 21%
In 2015, revenue increased primarily due to growth in the Core OTA segment, including strong performance
at Brand Expedia, Hotels.com and EAN as well as growth at trivago, partially offset by a decrease in revenue due
to the sale of eLong. In 2014, revenue increased primarily due to growth in hotel and advertising and media
revenue. Acquisitions added approximately 8% and 1% to the year-over-year growth rates in total revenue for
2015 and 2014.
Worldwide hotel revenue increased 14% (17% excluding eLong) in 2015 primarily due to a 19% (36%
excluding eLong) increase in room nights stayed driven by the inorganic impact of acquisitions as well as the
healthy growth in Hotels.com and Brand Expedia, partially offset by a 4% decrease (14% excluding eLong) in
revenue per room night in 2015. Absent eLong, revenue per room night decreased primarily due to strategic
margin reductions aimed at expanding the size and availability of our global hotel supply portfolio, an
unfavorable foreign exchange impact, both in translation and in book-to-stay, as well as increased promotional
activities such as growing loyalty programs. Revenue per room night is expected to continue to decrease year-
over-year in 2016. Absent impacts due to the sale of eLong, ADRs decreased by 5% primarily due to an
unfavorable foreign exchange translation impact. Acquisitions added approximately 6% of inorganic hotel
revenue growth in 2015 and 7% of room night growth. Worldwide hotel revenue increased 18% in 2014
primarily due to a 26% increase in room nights stayed driven by Brand Expedia and Hotels.com, partially offset
by a 6% decrease in revenue per room night. Revenue per room night decreased primarily due to efforts to
expand the size and availability of the global hotel supply portfolio as well as promotional activities such as
growing loyalty programs. This decline was partially offset by a 2% increase in ADRs in 2014 compared to
2013.
Worldwide air revenue increased 21% (25% excluding eLong) in 2015 due to a 28% (35% excluding
eLong) increase in air tickets sold, partially offset by a 6% (7% excluding eLong) decrease in revenue per air
ticket. Acquisitions added approximately 18% of inorganic air revenue growth in 2015 and 15% of air ticket
growth. Worldwide air revenue increased 22% in 2014 primarily due to a 28% increase in air tickets sold,
partially offset by a 5% decrease in revenue per air ticket. Air tickets sold growth was primarily driven by Brand
Expedia, including the Travelocity-branded websites.
The remaining worldwide revenue, other than hotel and air discussed above, which includes advertising and
media, car rental, destination services, fees related to our corporate travel business and HomeAway revenue,
increased by 19% in 2015 and 29% in 2014 primarily due to strong growth in advertising and media revenue as
well as growth in our travel insurance and car rental products.
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