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Expedia’s hotel business has momentum, and the acquisition of Trivago and its strategic marketing agreement with Travelocity are fueling the trend.
Expedia also implemented its strategic marketing agreement with Travelocity, selling its hotels from its North America websites during the fourth quarter, although it was too soon to have a material impact on results.
Overall for the fourth quarter, Expedia’s net income increased 41% to $125.1 million on revenue of $1.15 billion, an 18% year-over-year jump.
The revenue increase was fueled by the growth in hotel room nights, and a bump in advertising and media revenue. For the full year, Trivago contributed 4 percentage points to Expedia’s overall revenue growth of 18%.