Citing difficult conditions in the airline industry, Priceline.com plans to reposition its non-travel businesses and reduce its workforce by 65 positions.
This week, the company reported a third quarter loss of $24.3 million. Changes will include a discontinuation of Priceline’s “name your own price” calling minutes plan, part of its telecommunications service. The company is also working on integrating Lowestfare.com retail offers into its Web site as a way to sell to customers who aren’t successful in their Priceline.com bids for hotel nights or airfares. The first phase of those offers is expected to be up in the next few weeks.
Gross profit for the third quarter was $37.7 million, compared to $50.4 million in the third quarter 2001. The quarter was strong for the company’s hotel service, however. Booked offers grew 37% over the same period in 2001, with sales of over 1 million room nights. Priceline.com’s customer base grew to 15.4 million and repeat business for the quarter was a record 67.4%.
Priceline.com chairman and Co-CEO Richard S. Braddock noted in a statement that revenue in October was approximately $72.5 million, a slight improvement from September. Seasonal decreases are expected in November and December.
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