Expedia Faced Q2 Advertising Woes and its Hotwire Business Suffered
Skift Take
Fairly hidden amidst Expedia's woes and financial announcements is that it apparently believes its eLong business in China can vie with Ctrip for a leadership position in the country.
TV travel advertising in the U.S. has suddenly become more crowded and competitive, and as Expedia Inc. brands struggled to break through the clutter in the second quarter, the company's hotel business suffered, and its Hotwire unit took a particularly hard hit.
Amidst some downbeat financials, that was the competitive climate that officials said Expedia operated in during the quarter.
The impact of Expedia's multifaceted woes? Room night growth decelerated from 28% year-over year in the first quarter to 19% in the second quarter, and revenue growth likewise slowed from 24% in the first quarter to 16% in the second.
And, Expedia Inc.'s net income declined 27% to $90.5 million in the second quarter of 2013, compared with the same period a year earlier.
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