Skip to Content

Priceline’s profit soars amid bookings boom

Priceline.com Website Ahead Of Earnings FiguresPriceline.com Website Ahead Of Earnings Figures
The Priceline.com website.Photo by Bloomberg—Getty Images

People are traveling more, according to Priceline’s President and CEO Darren Huston — that’s leading to better results not just for his booking company, but also for the entire travel industry.

Total profit for the Norwalk, Conn., -based company last quarter was $1.9 billion, a 36% jump from the same quarter in 2013. That number was supported by increased activity in many of the services Priceline (PCLN) provides: A 19% – 29% in total gross travel bookings. A 10% – 15% in domestic travel bookings. 90 million total nights of room bookings, a 29% increase.

Two recently announced partnerships were highlighted in the earnings release, as well. First, Priceline’s investment of $500 million in Ctrip, a Chinese travel booking service. This is expected to further allow Priceline to get its foot in the international market, which could be a serious boon to its earnings in future quarters.

Second was the acquisition in June of OpenTable, the restaurant booking site and mobile app. Priceline spent $2.6 billion on the company, which allows it to expand its business into other elements of hospitality.

The two deals represent both vertical and horizontal growth for Priceline.