Revenue by segment
Expedia’s (EXPE) 2Q16 revenues grew by 32% YoY (year-over-year) to $2.2 billion. The company’s revenues are divided into four segments: Core OTA (online travel agency), trivago, Egencia, and HomeAway (AWAY).
Core OTA revenues increased by 21% YoY to $1.8 billion. Revenues for trivago increased by 41% to $201 million. As the trivago business is to be listed soon, for the next few quarters, no additional commentary on it will be provided.
Egencia revenues increased by 23% to $125 million. Part of the Egencia growth came from the Orbitz business being migrated to the Egencia platform. Also, while volume growth remained strong, pricing was weak. For HomeAway, acquired by EXPE in 4Q15, revenues increased by 36% to $172 million.
Revenue by channel
While the merchant business contributed 55% of the total revenues, the agency business contributed 28%, advertising contributed 9%, and the remaining 8% came from HomeAway. YoY, the merchant business grew by 14.2%, the agency business grew by 35.4%, and the advertising business grew by 41.3% YoY.
Revenue by product
Hotels contributed 61% of EXPE’s revenues, air travel contributed 9%, and media and advertising contributed 9%. HomeAway accounted for 8% of revenues while the remaining 13% was other revenues. Hotel revenues grew by 14% YoY and air business revenues grew by 50% YoY.
Revenue by geography
International revenues grew by 24% and domestic revenues grew by 40%. Domestic revenue was boosted by the Orbitz acquisition. Due to this, international sales formed 42% of Expedia’s revenue, against 45% in 2Q15.