Leisure travel has been rising lately. Royal Caribbean
Likewise, business and group travel is also on the mend. Last week, Hilton
As expected, the companies that direct travelers to their rooms, berths, flights, and vehicles have been direct recipients of all this. Yesterday, Priceline.com
Each of Orbitz's three business segments posted strong top-line growth, lifting overall revenues 30% to $75.6 million. Air revenues rose 12% to $44.2 million. Other travel revenues, excluding air, nearly doubled to $22 million. Hotel and rental car revenues increased 52% and 50% respectively, while sales of vacation packages tripled. The third division -- prosaically named other revenues -- jumped 23% to $9.3 million, thanks to advertising growth.
At the midway point of the year, Orbitz's gross margins have expanded from 66% to 73%, lifting gross profits 48% to $106.1 million. Net income has swung from a $5.4 million ($0.16) loss to a $12.2 million ($0.28) gain. Gross bookings of $2.1 billion mark a 29% improvement over last year's pace.
Orbitz's second-quarter bookings grew 21%, healthy in absolute terms, but still trailing Priceline's 58% growth, and industry leader InterActiveCorp's
Fool contributor Nathan Slaughter periodically checks online travel sites in search of a $100 or less Dallas-Las Vegas flight but hasn't found one yet. He owns none of the companies mentioned.