Priceline Thriving in Recession Times

Discounts abound in this poor economy, and consumers are flocking to Priceline.com to buy travel.

Amid heavy discounting by suppliers, Priceline’s second-quarter gross bookings increased 12.8 percent, to $2.38 billion. The company’s revenue rose 17.5 percent, to $603.7 million, and Priceline’s second-quarter net profit increased 34.5 percent, to $67 million.

“Despite a difficult economic climate, leisure travel demand for the summer peak season has been stronger than expected, driven in part by the availability of compelling discounts,” said Priceline CEO Jeffery Boyd.

Boyd added that suppliers stung by plummeting business travel “have responded with promotions and discounts to spur leisure demand, and we have offered distribution and advertising support for those efforts, which we believe has helped bolster occupancy and load factors.”