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Rebound in bookings lifts Expedia to 4Q profit

February 15, 2010 |

Higher bookings lifted Expedia to a fourth-quarter profit from a year-ago loss and declared its first-ever quarterly dividend. The news is another encouraging sign for the travel sector, which has struggled during the economic downturn as business and leisure travelers tightened their spending.

Earlier Thursday hotelier Marriott International Inc. also reported a return to fourth-quarter profit as business travel improved and budget-conscious leisure travelers took advantage of promotions at its namesake and Ritz-Carlton brands. And Wednesday, Wyndham Worldwide Corp., which runs Ramada, Days Inn and Super 8 hotels, posted better-than-expected results on higher occupancy levels. Both hotel operators conceded, however, that room rates remain weak.

Expedia President and CEO Dara Khosrowshahi said more travelers are booking trips further in advance, though the window has yet to return to 2008 levels. Corporate travel appears to be improving somewhat, he said, pointing toward strength in the company's business travel group Egencia.

''I wouldn't say that things are super, but it is a heck of a lot better than last year, and I think everyone is feeling more stable and it is back to kind of managing the business,'' Khosrowshahi said on a conference call with analysts.

Get the full story at The New York Times

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