“Business performed above our expectations in the third quarter”: Priceline

Online travel company Priceline.com’s third quarter growth rates accelerated sequentially as the summer travel season turned out to be an “exceptionally strong one”.

Priceline reported a profit of $319 million up from $84.5 million a year earlier. 

Gross travel bookings were $2.7 billion, an increase of 32.8 percent over a year ago. The company had revenues of $730.7 million, a 30.1 percent increase over a year ago. 

International operations contributed revenues of $316.9 million, a 41.7 percent increase versus a year ago.

On a global basis, priceline.com continued to increase its market share as hotel room night reservations grew by 56 percent in the 3rd quarter, propelled by strong performance in the US, Europe and Asia, said priceline.com’s president and CEO Jeffery H. Boyd.

“Internationally, our hotel business experienced gross travel bookings growth of 38 percent, or approximately 49 percent on a local currency basis, as we reaped the benefits of outstanding hotel supply, geographic expansion in high-opportunity markets and continued shift by consumers to on-line booking of hotel reservations,” said Boyd. 

“Our US business grew gross travel bookings by 25 percent as consumers continue to respond positively to our money-saving travel services. Airline ticket sales were up 30.2 percent, despite the fact that competitors’ matching fee eliminations were in place for the entire quarter. Rental car days booked increased 11.6 percent.”

Worldwide hotel room night reservations were $17.9 million for the quarter, up 56 percent year-over-year.

“While the global economic environment remains challenging, we were pleased to see accelerating growth in hotel unit sales, which allowed us to overcome the continued impact of negative year-over-year pricing and currency trends,” said Boyd.