Orbitz 2009 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2009 Orbitz annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

The table below shows our gross bookings and net revenue for the years ended December 31, 2008, 2007
and 2006:
2008
Successor
2007
Successor
$
Change
%
Change
2007
Successor
2006
Combined
$
Change
%
Change
Year Ended
December 31,
Year Ended
December 31,
(in millions) (in millions)
Gross bookings (a)
Domestic
Air......................... $ 6,810 $ 7,111 $(301) (4)% $ 7,111 $6,610 $ 501 8%
Non-air and other .............. 2,324 2,282 42 2% 2,282 2,138 144 7%
Total domestic gross bookings . . . 9,134 9,393 (259) (3)% 9,393 8,748 645 7%
International
Air......................... 1,073 853 220 26% 853 630 223 35%
Non-air and other .............. 601 545 56 10% 545 402 143 36%
Total international gross
bookings ................. 1,674 1,398 276 20% 1,398 1,032 366 35%
Total gross bookings ............. $10,808 $10,791 $ 17 0% $10,791 $9,780 $1,011 10%
Net revenue
Domestic
Air......................... $ 277 $ 305 $ (28) (9)% $ 305 $ 295 $ 10 3%
Non-air ..................... 308 295 13 4% 295 248 47 19%
Other ....................... 101 79 22 28% 79 68 11 16%
Total domestic net revenue . . . 686 679 7 1% 679 611 68 11%
International
Air......................... 62 70 (8) (11)% 70 60 10 17%
Non-air ..................... 106 99 7 7% 99 66 33 50%
Other ....................... 16 11 5 45% 11 15 (4) (27)%
Total international net
revenue ................ 184 180 4 2% 180 141 39 28%
Total net revenue (b) ............ $ 870 $ 859 $ 11 1% $ 859 $ 752 $ 107 14%
(a) Gross bookings data for all periods presented in the table above exclude Travelbag, an offline U.K. travel
subsidiary that we sold in July 2007.
(b) For the years ended December 31, 2008, 2007 and 2006, $117 million, $116 million and $101 million of
our total net revenue, respectively, was attributed to incentive payments earned for air, car and hotel seg-
ments processed through global distribution systems.
Comparison of the year ended December 31, 2008 to the year ended December 31, 2007
Gross Bookings
For our domestic business, which is comprised principally of Orbitz, CheapTickets and Orbitz for
Business, total gross bookings decreased $259 million, or 3%, during the year ended December 31, 2008 from
the year ended December 31, 2007. Of the $259 million decrease, $301 million was due to a decrease in
domestic air gross bookings, which was driven by lower transaction volume as a result of the adverse impact
of economic conditions on air traveler demand, capacity reductions and our reduction in online marketing
expenditures. A higher average price per airline ticket, due to higher fuel prices during the majority of 2008
and capacity reductions, partially offset the decrease in volume. Non-air and other gross bookings increased
42