Orbitz Worldwide Inc. Q3 2008 Earnings Call Transcript

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2008-11-11 05:07:14.0

Tags: MSN, Growth, Orbitz, Call Transcript, Earnings, Operational Accounting, Finance, Seeking Alpha, MSN, Growth, Orbitz, Call Transcript, Earnings, Operational Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Imran Khan - JP Morgan.

Imran Khan - JP Morgan

I was trying to understand, what are the key factors that drive in the domestic non-air and other net revenue growth rate and then the second question is how much growth do you expect to come from MSN and what kind of profitability is associate with MSN revenue? Thank you.

Steve Barnhart

On the net air growth, advertising dynamic packaging and hotels are the largest drivers of the strong non-air growth in the quarter. As far as, MSN; MSN does have the ability to use Farecast on the site and we have the right to be on MSN and on Farecast. So we’ll be present in the results either way, whether MSN is using the Farecast alternative or just showing the results of Orbitz, but beyond that we’re not going to specifically give you numbers as to the size before to the profitability of the relationship.

Operator

Your next question comes from Brian Fitzgerald - Bank of America Securities.

Brian Fitzgerald – Bank of America Securities

In terms of your international gross bookings they were up on both volume and higher price as you said. I was wondering if you can give us a little more granularity on the breakdown of those increases in volume and prices in terms of air versus hotels versus packages and some of the international side and maybe including some commentary on ADRs and occupancy rates. Thanks.

Marsha Williams

In terms of the international gross bookings, the book volume and rate are really going to be more out of our Ebookers business, which is growing on both of those fronts, in air as well as packaging where it has a smaller base and is getting very good growth in hotels, particularly where we’ve added more inventory with the new platform, a lot of that coming out of growth in the US. Those will be the strongest drivers behind that.

As far as ADRs, in fact it’s very difficult give a good summary view of ADRs across our different international hotel business, but the stronger growth we are seeing is from volume and price at the Ebookers business.

Operator

Your next question comes from Mark Mahaney - Citi.

Mark Mahaney – Citi

As you think about different steps you need to take, you mentioned some of personal steps, corporate steps in this economic environment. Do you have to contemplate or do you have any thoughts on changes in your marketing mix, different channels you would want to use, would you want to accelerate any particular moves there or decelerate others? Thank you.

 
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