Online travel agency Expedia reported an increase in its second quarter revenue, driven by growth in travel bookings and robust advertising.

The value of Expedia's travel bookings increased to USD6.7 billion, up 19 per cent for the second quarter of 2010 compared with the second quarter of 2009.

"[This increase] was driven primarily by ten per cent growth in transactions and a 17 per cent increase in average airfares," Expedia said.

Domestic bookings increased 15 per cent resulting in a nine per cent revenue jump, while international bookings increased 28 per cent producing 16 per cent revenue growth, excluding foreign exchange.

An increase in advertising and media, air and hotel revenues drove Expedia's overall revenue growth by 11 per cent to USD834 million, excluding foreign exchange, for the second quarter.

"As a percentage of worldwide revenues in the second quarter of 2010, hotel accounted for 63 per cent, advertising and media accounted for 13 per cent, while air and all other revenues each accounted for 12 per cent," Expedia said.