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Orbitz Makes Modest Strides in Hotel Business in Q4

@denschaal

Feb 13, 2014 9:20 am

Skift Take

As Expedia CFO Mark Okerstrom said the other day, “scale begets scale.” Orbitz’s modest 15% growth in room nights in the fourth quarter partially reflects the lack thereof.

— Dennis Schaal

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Orbitz Worldwide made modest strides in its hotel business in the fourth quarter as room nights sold increased 15% year over year.

By comparison, Expedia Inc. notched 25% room night growth in the fourth quarter while Priceline has yet to report its numbers. Travelocity, part of Sabre, is private.

For the fourth quarter, Orbitz notched $5.3 million in net income compared with a loss of $314.6 million a year earlier.

Revenue for the fourth quarter of 2013, driven by higher hotel and vacation package volumes and increase revenue in these transactions, increased 4% to $197.4 million.

In the fourth quarter, as Orbitz continues its successful quest to diversify away from the airline ticket business, hotel and vacation package revenue accounted for 53% of total revenue, up from 47% a year earlier.

Net income for full-year 2013 came in at $165.1 million compared with a net loss of $301.7 million for 2012.  The change was tax-related in 2013, and because of an impairment charge in 2012.

Orbitz’s revenue for full-year 2013 climbed 9% to $847 million.

CEO Barney Harford said the company will focus on loyalty, mobile and international expansion in 2014.

For full-year 2014, Orbitz projects modest revenue growth in the low- to mid-single digits, and adjusted EBITDA growth in the high-single digits

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