Orbitz 2010 Annual Report Download - page 42

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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.
For our international business, 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 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 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.
Results of Operations
Comparison of the year ended December 31, 2009 to the year ended December 31, 2008
2009 2008
$
Change
%
Change(a)
Years Ended
December 31,
(in millions)
Net revenue
Air ............................................... $ 270 $ 339 $ (69) (21)%
Hotel.............................................. 184 239 (55) (23)%
Dynamic Packaging ................................... 117 114 3 3%
Advertising and media ................................. 60 60 — —
Other.............................................. 107 118 (11) (9)%
Total net revenue ....................................... 738 870 (132) (15)%
Cost and expenses
Cost of revenue ...................................... 138 163 (25) (15)%
Selling, general and administrative ........................ 257 272 (15) (5)%
Marketing .......................................... 215 310 (95) (31)%
Depreciation and amortization ........................... 69 66 3 4%
Impairment of goodwill and intangible assets ................ 332 297 35 12%
Total operating expenses ................................. 1,011 1,108 (97) (9)%
Operating (loss) ....................................... (273) (238) (35) 14%
Other (expense) income
Net interest expense ................................... (57) (63) 6 (8)%
Gain on extinguishment of debt .......................... 2 — 2 **
Total other (expense) .................................... (55) (63) 8 (12)%
Loss before income taxes ................................ (328) (301) (27) 9%
Provision (benefit) for income taxes ......................... 9 (2) 11 **
Net loss attributable to Orbitz Worldwide, Inc. .............. $ (337) $ (299) $ (38) 13%
As a percent of net revenue(a)
Cost of revenue ...................................... 19% 19%
Selling, general and administrative expense.................. 35% 31%
Marketing expense .................................... 29% 36%
** Not meaningful.
(a) Percentages are calculated on unrounded numbers.
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