During its Q4 financial report, Priceline talked about how the company's business model can thrive during good and bad times.
Priceline backed that up with results that are the envy of online travel agencies, if not the entire travel industry.
The OTA reported net income of $33.3 million in Q4, a 1.2% increase. CEO Jeffery Boyd said gross travel bookings increased 31.1% in the quarter.
"Our value brand and low prices appealed to cost-conscious consumers, and suppliers used our Name Your Own Price distribution to sell their services in the face of slowing demand," Boyd said.
With Name Your Own Price, consumers commit to a price they want to pay for air, car or hotel but don't know what brand they will get.
Boyd also said, "We believe that our brand identity and an effective marketing campaign featuring the Priceline Negotiator are resonating with customers." Longtime company spokesman William Shatner stars in the Priceline Negotiator TV commercials.
Boyd said that the "tone of the times" has greatly hurt corporate travel and wounded airlines and hotels but has not affected Priceline to nearly the same degree.
"Priceline continued to grow and take market share in the United States and internationally despite very challenging global economic conditions," said Boyd.
Expedia Inc. revenue drops 6.7% in the quarter
While Priceline's Q4 revenue increased 21.2%, to $406 million, Expedia Inc.'s revenue was down 6.7%, to $620.8 million.
But the biggest eye-opener on Expedia's earnings statement was a noncash charge that sunk the company to a $2.76 billion net loss for the quarter.
"We have taken a substantial writedown of the accounting value of our goodwill largely due to significant stock market declines," said Expedia CEO Dara Khosrowshahi.
Dollar Thrifty's Q4 loss more than doubles
A decline in demand and a deterioration in the used-car market sunk Dollar Thrifty Automotive Group to a $72.2 million net loss in Q4. The loss was more than double the $30.6 million Dollar Thrifty lost in Q4 '07.
Revenue was $355.1 million, compared with $389.2 million a year earlier, an 8.8% drop. Rental revenue fell 9.8%, to $336.7 million. Fleet size was down about 3%.
Per-vehicle depreciation costs increased about 16% in Q4, reported Dollar Thrifty, due to the decline in residual values resulting from the deterioration of the used-vehicle market.
For the full year, Dollar Thrifty lost $340.4 million, compared with a net profit of $1.2 million for 2007. Revenue for 2008 was $1.7 billion, a 3.6% decrease.
As of Dec. 31, Dollar Thrifty said it had a tangible net worth of approximately $185 million and $230 million in unrestricted cash. The company added that it was in compliance with all financial covenants.
IHG profit up 13% in '08; Wyndham loses $1.1B
InterContinental Hotels Group reported a 13% rise in 2008 profit but said the marked slowdown that hit in the fourth quarter has shown no signs of improving.
"It has been clear for some time that 2009 will be a challenging year," CEO Andrew Cosslett said in releasing the results.
IHG, one of the world's largest hoteliers whose brands include InterContinental, Crowne Plaza and Holiday Inn, said revenue per available room fell 6.5% in the fourth quarter of 2008 and 12.2% in January.
The company met its 2008 forecast, as continuing operating profit rose to $535 million. Revenue was up 5%, to $1.85 billion, and global RevPAR grew 0.9%.
Wyndham Worldwide, meanwhile, reported a $1.1 billion net loss for the year, much of it from a $1.3 billion Q4 writedown for its timeshare business.
The company said the impairment charge wouldn't affect its cash position, liquidity or credit agreements.
Wyndham reported revenue of $911 million in the fourth quarter, a 12% decrease from the same quarter a year earlier, when the company had revenue of just over $1 billion.
The drop in revenue reflects a slowdown of the vacation-ownership business and an adverse foreign-currency effect due to the strengthening U.S. dollar, Wyndham said.
Wyndham had also announced plans for a $200 million stock sale to support its credit ratings and help position the company to take advantage of strategic opportunities in the distressed hotel market this year. But after a steep selloff by investors, the company said last week that it had canceled those plans.
"The market reaction to our announcement was strongly negative, and we appreciate the feedback from our shareholders," said Wyndham Chairman and CEO Stephen Holmes in a statement.