The financials are in from Expedia. According to the reports, wile quarter 4 revenue was up by 6.7% at $787.1 million compared with the previous year, expenses took their toll virtually eliminating and growth for 2011.
Expedia reported gross booking up by almost 10 percent during the final quarter of 2011, but expenses outpaced any gains coming in at just over 12% higher than in the previous year. Airfares, continually declining as a main revenue stream for most big OTAs, accounted for only 9% of the company’s win. Hotels, where the preponderance of Expedia earnings originate from, accounted for 73% of revenue.
On this news, Expedia shares fell sharply by close yesterday. Forbes reported shares down, PDE up, and sales looking fair, so one can only assume TripAdvisor’s woes have impacted negatively on Expedia even after TA’s break-off. For more information on this news, please visit the Expedia investor section or view the original press release from the company.