Orbitz Worldwide Inc. operates as an online travel company that enables leisure and business travelers to research plan and book a range of travel products. It provides a set of travel products including air hotels vacation packages car rentals cruises travel insurance and destination services such as ground transportation event tickets and tours worldwide. The company owns and operates a portfolio of consumer brands including Orbitz CheapTickets ebookers HotelClub RatesToGo and the Away Network as well as corporate travel brands such as Orbitz for Business and Travelport for Business. Orbitz Worldwide Inc. has a market cap of $224.3 million; its shares were traded at around $2.69 with and P/S ratio of 0.2.
Highlight of Business Operations:took steps to reduce our cost structure to manage through the current economic recession and industry downturn. In the fourth quarter of 2008 and in the first quarter of 2009, we reduced our global workforce, our use of outside contractors and other operating expenses. We expect to realize approximately $40 to $45 million of annualized cash savings from these actions. In the first quarter of 2009, we also significantly restructured our approach to marketing, bringing greater emphasis to marketing efficiency. Our emphasis on marketing efficiency combined with declines in volume resulted in a $21 million decline in total marketing expense in the first quarter of 2009 compared with the first quarter of last year. We expect that our marketing expense for the remainder of 2009 will continue to be lower than the prior year, as a result of lower volume and our ongoing efforts to increase marketing efficiency.
For our domestic business, which is comprised principally of Orbitz, CheapTickets and Orbitz for Business, total gross bookings decreased $318 million, or 13%, during the three months ended March 31, 2009 from the three months ended March 31, 2008. Of the $318 million decrease, $311 million was due to a decrease in domestic air gross bookings, which was driven by lower transaction volume and to a lesser extent, a lower average price per airline ticket. Lower transaction volume was primarily due to the impact of weak economic conditions on air traveler demand and airline capacity reductions. The lower average price per airline ticket was primarily due to lower fuel prices and lower demand for air travel.
For our international business, which is comprised principally of ebookers, HotelClub and RatesToGo, total gross bookings decreased $174 million, or 36%, during the three months ended March 31, 2009 from the three months ended March 31, 2008. Of this decrease, $94 million was due to foreign currency fluctuations. The remaining $80 million decrease was due to a $41 million decrease in air gross bookings and a $39 million decrease in non-air gross bookings. The decrease in air gross bookings was due to lower volume and a lower average price per airline ticket. The decrease in volume primarily resulted from the weak economic conditions in Europe. The decrease in average price per airline ticket is primarily due to lower demand for air travel.
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