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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.
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