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Orbitz had a little momentum going, but saw its all-important hotel room-night growth slow in the first quarter. It is also a lesson in scale as the bigger players such as Expedia and Priceline grow much faster.
Room nights grew at a 12% pace in the first quarter, down from the 14% growth it posted a year earlier. Orbitz only had the benefit of a boost from the Travelocity affiliate network, which powers Yahoo Travel, for example, for one month during the quarter.
That relatively lackluster 12% hotel room night growth in the quarter compares with the 24% notched by Expedia. Priceline reports its first quarter results later this week.
Orbitz Worldwide saw its gross bookings rise just 3% to $3.2 billion in the quarter, and the Travelocity affiliate network contributed 4 percentage points to that rise.
For the first quarter, Orbitz notched a net loss of $5.9 million, compared with net income of $146.2 million a year earlier. Orbitz attributed the loss to “the release of a $157.5 valuation allowance related to the company’s U.S. federal deferred tax assets in 2013.”
Revenue for the first quarter rose 3.6% to $210.2 million.