Priceline profit up on leisure demand

CHICAGO (Reuters) - Online travel agency Priceline.com Inc (PCLN.O) said on Monday its quarterly profit increased on stronger bookings, as demand for leisure travel was stronger than expected during the economic recession.

The company said its second-quarter net profit amounted to $67 million, or $1.38 per share, compared with $49.8 million, or $1.00 per share a year earlier.

Priceline, best known for its name-your-own-price auctions, said the total value of its bookings rose 12.8 percent to $2.38 billion.

"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 Chief Executive Jeffery Boyd.

Priceline's revenue jumped 17.5 percent to $603.7 million.

The travel business has been suffering as the economic recession erodes demand, particularly demand for business travel. Priceline and its rivals Expedia Inc (EXPE.O) and Orbitz Worldwide Inc (OWW.N) have been trying to stimulate travel demand with incentives and fee waivers.

(Reporting by Kyle Peterson, editing by Gerald E. McCormick)