Expedia sees revenues jump as room nights soar at mothership and Hotels.com

Strong third financial quarter for Expedia Inc and its myriad of brands, especially in terms of growing the international businesses, with a 17% jump in revenues on the same period last year.

The company saw revenues increase from $1.02 billion in the third quarter of 2011 to $1.19 billion in the same period of 2012, an increase of 17%.

Adjusted EBITDA also climbed by 6% from $277.7 million in Q3 last year to $293.6 million in 2012.

Expedia says a 27% increase in room nights y/y across all its territories was central to the strong performance with international “points of sale” accounting for over half of total room nights.

This, the company says, represents a “significant milestone of our international business”, particularly on the main Expedia and Hotels.com brands.

Macquarie Securities says:

• “Conversion improvements for the Expedia-brand appear to be a driver, and with better technology now in place, EXPE is ramping its marketing spend, helping drive further volume.”

Nevertheless, air revenue declined over the reporting period y/y by 10%, primarily because of a 19% fall in revenue -per-ticket.

Global hotel revenue jumped by 20% over the same period.

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2. Expedia technology investments and international expansion impact profits
3. Hotels.com follows the mothership with celebrity-voiced TV ad for the UK