Although Classic Custom Vacations
was acquired March 9 and thus was part of Expedia for just 22 days during the first quarter, the $5.6 million in revenue it generated amounted to almost 10% of Expedia`s merchant revenue for the quarter.
Overall, Expedia`s merchant revenue from Classic`s packages, Expedia Vacation packages and Expedia Special Rate hotels was $57.7 million, more than quadrupling the year-ago mark of $14.3 million.
For the first time in the online agency`s history, merchant revenue exceeded agency revenue, which was $51.7 million.
Online agencies such as Expedia and Travelocity
are scurrying to position themselves as wholesalers as airline commissions become scarce.
For the quarter, Expedia
turned a profit, with net income of $5.7 million, or 9 cents per share.
With Expedia coming under the control of USA Networks on Feb. 4, the online agency`s revenue was increased 103% year-over-year to $116 million.
Gross bookings, meanwhile, hit the $1.1 billion mark, a hike of $425 million over the comparable period in 2001.
Related stories on ITN:
(12/03/2002) Expedia Acquires All Assets of Classic Custom Vacations
(21/02/2002) Expedia & USA Networks Agreement
(29/02/2002) Expedia Surpasses Expectations
(24/02/2002) Expedia acquires vacation company assets