Expedia'sgrossbookingsrise21%in2016

Key Highlights
* Gross bookings increased USD 1.2 billion or 8% YoY to USD 16.1 billion in the fourth quarter of 2016. Revenue increased 23% YoY to USD 2.1 billion in the quarter.
* Room nights stayed increased 15% YoY in the quarter, with growth of 16% excluding Orbitz Worldwide.
* On a standalone basis, Trivago reached USD 183 million in revenue in the fourth quarter of 2016, an increase of 65% YoY, and completed its IPO and listing on the Nasdaq in December 2016.
* HomeAway delivered USD 166 million of revenue in the quarter, representing an increase of 30% YoY on a standalone basis.

Product & Services Detail - Fourth Quarter

As a percentage of total worldwide revenue in the fourth quarter of 2016, hotel accounted for 61%, advertising and media accounted for 9%, HomeAway accounted for 8%, air accounted for 8% and all other revenues accounted for the remaining 14%.

Hotel revenue increased 13% in the fourth quarter of 2016 on a 15% increase in room nights stayed driven by growth in Hotels.com, Brand Expedia and EAN, partially offset by a 2% decrease in revenue per room night. Excluding Orbitz, room nights stayed increased 16%. 

Air revenue increased 6% in the fourth quarter of 2016 on a 6% increase in air tickets sold and no change in revenue per ticket YoY. Excluding Orbitz, air tickets sold increased 13%.

Advertising and media revenue increased 36% in the fourth quarter of 2016 due to continued growth in trivago and Expedia Media Solutions. All other revenue increased 73% in the fourth quarter of 2016 primarily driven by the addition of the HomeAway business. Excluding HomeAway, other revenue increased 18% in the fourth quarter of 2016 on growth in travel insurance and car rental products.

Product & Services Detail (excluding eLong) - Full Year 2016

As a percentage of total worldwide annual revenue, hotel accounted for 61%, advertising and media accounted for 9%, air accounted for 9%, HomeAway accounted for 8% and all other revenues accounted for the remaining 13%.

Hotel revenue increased 16% in 2016 on a 21% increase in room nights stayed driven by the inorganic impact of acquisitions as well as the organic growth in Hotels.com, Brand Expedia and EAN, partially offset by a 4% decrease in revenue per room night. The inorganic component of acquisitions added approximately 7 percentage points of hotel revenue growth and 6 percentage points of room night growth for the year.

Air revenue increased 39% in 2016 on a 32% increase in air tickets sold, augmented by a 5% increase in revenue per ticket, driven primarily by new contractual agreements and the addition of Orbitz Worldwide. The inorganic component of acquisitions added approximately 28 percentage points of air revenue growth and 21 percentage points of air ticket growth for the year.

Advertising and media revenue increased 43% in 2016 due to continued growth in trivago and Expedia Media Solutions. All other revenue increased 101% in 2016 primarily driven by the addition of the HomeAway business. Excluding HomeAway, other revenue increased 29% in 2016 on growth in travel insurance and car rental products, including an inorganic contribution from Orbitz Worldwide.

Core OTA

* Brand Expedia’s Australia New Zealand region surpassed the USD 1 billion gross bookings mark in 2016. Brand Expedia Japan also reached USD 1 billion gross bookings in 2016.
* The Brand Expedia points of sale in Asia grew mobile room nights over 65% in the fourth quarter, with almost all key Asian markets getting more mobile visitors than desktop visitors.
* Expedia CruiseShipCenters achieved over USD 560 million in gross bookings in 2016, with 18% YoY growth in fourth quarter gross bookings.

Trivago
* Trivago YoY revenue growth accelerated in the fourth quarter across all regions, with the Rest of World region growing over 130%.

Egencia
* During 2016, Egencia saved travelers over 15,500 hours through its automated call back functionality, letting them attend to other matters rather than waiting on hold.

HomeAway
* HomeAway completed the first integration of Expedia vacation rental properties onto HomeAway.com and VRBO.com. Combined with HomeAway’s existing inventory, there are now more than 1 million instantly bookable units on HomeAway. The launch is on HomeAway US and VRBO and is expected to expand to all HomeAway sites.
* HomeAway added 20,000 listings to Expedia.com as of year-end and will continue to add more in 2017.
* During 2016, HomeAway online gross bookings reached approximately USD 6.0 billion, an increase of 46% year-overyear, while online property nights stayed surpassed 22 million, an increase of 48% YoY. HomeAway inventory now stands at approximately 1.2 million online bookable listings.

Expedia, Inc.
* At the end of 2016, Expedia’s global lodging portfolio consisted of over 350,000 properties available on the Core OTA and Egencia platforms, including approximately 20,000 HomeAway listings that have been integrated into the portfolio during the fourth quarter.

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