Expedia Reverses Prior-Year 4Q Loss; Bookings Climb 26% | wsj.com
Expedia Inc. (EXPE) reversed a fourth-quarter prior-year loss caused by a $2.76 billion write-down, while in the latest quarter the online travel agency saw gross bookings jump 26%, though revenue was up by a lesser amount amid lower prices and fees. Still the results beat analysts's estimates. Expedia eliminated its airline booking fees and cut back hotel booking fees last year in an effort to compete more closely with airlines' and hotels' Web sites. Many other online travel companies have followed suit. While the move has improved its bookings, it is likely to weigh on margins until the company passes the anniversary of the fee cuts.
