Expedia Inc. reported that fourth-quarter net income was $70.3 million, down slightly from $71.2 million during the same period in 2010.
Fourth-quarter revenue was up 6.7% to $787.1 million. However, Expedia reported that costs and expenses climbed 12.2% to $664.4 million, as the company had increased marketing and labor expenditures.
Expedia said gross bookings increased 9.6% during the quarter, primarily driven by 19% growth in hotel room nights through strong performances at Hotels.com brands, Expedia Affiliate Network, Hotwire and Egencia. The average daily room rate grew 2%, Expedia said.
Average airfare jumped 10% during the fourth quarter, Expedia said, but it was almost entirely offset by an 8% decline in airline tickets sold.
Expedia said that its hotel business accounted for 73% of fourth-quarter revenue, while air accounted for 9%. All other revenue sources accounted for the remaining 18%.
International bookings as a percentage of the total reached 39% during the quarter, up one percentage point from the same period in 2010.
The online travel agency reported a $472.2 million profit for all of 2011, a 12% increase from $421.5 million in 2010.
Full-year revenue was $3.4 billion, up 13.9% from $3.03 billion in 2010.
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