Priceline and Orbitz this week each reported improved first-quarter financial results, largely on a continued increase in hotel bookings.
Priceline increased first-quarter net income by 34% to $244.3 million. Revenue rose 26% to $1.3 billion, as the company increased its number of booked hotel room nights and car rental days by 38% and 43%, respectively.
Gross bookings advanced 36% to $9.2 billion, Priceline said.
The company, which generates more than 80% of its business from outside the U.S., said U.S. bookings growth accelerated 8.7%, as the company debuted its Express Deals semi-opaque service this year. Priceline in January also launched its first U.S. advertising campaign for Booking.com.
Meanwhile, Orbitz shares reached a six-year high after the OTA reported a first-quarter profit and beat analysts’ revenue projections.
Orbitz’s revenue rose 6.9% from a year earlier to $202.9 million, exceeding the $198.1 million average analyst estimate in a Thomson Reuters survey.
Increased hotel bookings and higher revenue per air ticket more than offset lower air volume, Orbitz said. Gross bookings fell 1.3% to $3.1 billion.
Orbitz had net income of $146.2 million, compared with a year-earlier loss of $6.51 million, as the company had a one-time tax benefit of $157.5 million from deferred tax assets.
Orbitz shares jumped 21% on Thursday to the highest level since May 2008.
Follow Danny King on Twitter @dktravelweekly.