Orbitz 2009 Annual Report Download - page 43

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$42 million, or 2%, during the year ended December 31, 2008 from the year ended December 31, 2007. This
increase was primarily driven by higher gross bookings for dynamic packaging. Gross bookings for dynamic
packaging increased due to higher transaction volume and a higher average price per dynamic package. An
increase in the average price per airline ticket included in a dynamic package primarily drove the higher
average price per dynamic package. A decrease in gross bookings for car rentals and hotels partially offset this
increase. Lower transaction volume, offset in part by a higher average price per transaction, drove the decline
in gross bookings for car rentals and hotels. The higher average price per transaction for domestic hotel gross
bookings was mainly due to growth in ADRs through August of 2008, as we experienced a significant decline
in ADRs in the fourth quarter of 2008, which we expect will continue into 2009.
For our international business, which is comprised principally of ebookers, HotelClub and RatesToGo,
total gross bookings increased $276 million, or 20%, during the year ended December 31, 2008 from the year
ended December 31, 2007. Of this increase, $28 million was due to foreign currency fluctuations. The
remaining $248 million increase was due to a $204 million increase in air gross bookings and a $44 million
increase in non-air and other gross bookings. The increase in air gross bookings primarily resulted from a
higher average price per airline ticket, due in part to higher fuel prices during the majority of 2008, and higher
transaction volume. The growth in non-air and other gross bookings was primarily driven by increases in gross
bookings for dynamic packaging, and, to a lesser extent, car rentals. A decline in gross bookings for hotels,
due to lower transaction volume, partially offset these increases.
Net Revenue — See discussion of net revenue in the Results of Operations section below.
Comparison of the year ended December 31, 2007 to the year ended December 31, 2006
Gross Bookings
For our domestic business, which is comprised principally of Orbitz, CheapTickets and Orbitz for
Business, total gross bookings increased $645 million, or 7%, during the year ended December 31, 2007 from
the year ended December 31, 2006. Of the $645 million increase, $501 million was due to an increase in
domestic air gross bookings. Higher air transactions drove this increase. Non-air and other gross bookings
increased $144 million, or 7%, during the year ended December 31, 2007 from the year ended December 31,
2006. Higher gross bookings for dynamic packaging primarily drove this growth due to an increase in volume
and a higher average price per transaction. Growth in gross bookings for hotels also increased due to a higher
price per transaction, primarily driven by higher ADRs and a longer average length of stay.
For our international business, which is comprised principally of ebookers, HotelClub and RatesToGo,
total gross bookings increased $366 million, or 35%, during the year ended December 31, 2007 from the year
ended December 31, 2006. Of this increase, $101 million was due to foreign currency fluctuations. The
remaining $265 million increase was due in part to a $168 million increase in international air gross bookings
as a result of higher transactions, which helped offset a slightly lower average price per air transaction. The
remaining growth in non-air and other international gross bookings of $97 million was primarily driven by
increased hotel volume at ebookers, HotelClub and RatesToGo.
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