Expedia, Inc.

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Expedia, Inc.
Public
Traded as NASDAQ: EXPE
S&P 500 Component
Industry Travel
Technology
Founded 1996
(as a division of Microsoft)
Headquarters Bellevue, Washington, U.S.
Key people
 Barry Diller (Chairman)
Dara Khosrowshahi (CEO)
Mark Okerstrom (CFO)
Products Expedia.com
Hotels.com
Hotwire.com
trivago
Egencia
Venere
Classic Vacations
Expedia Local Expert
Revenue Increase US$ 5.763 billion (2014)[1]
Decrease US$ 517.8 million (2014)[1]
Decrease US$ 398.1 million (2014)[1]
Total assets Increase US$ 9.02 billion (2014)[1]
Number of employees
 14,570 (December 2013)[2]
Website www.expediainc.com

Expedia, Inc. is an American-based parent company to several global online travel brands including Expedia.com, Hotels.com, Hotwire.com, trivago, Egencia (formerly Expedia Corporate Travel), Venere.com, Expedia Local Expert, Classic Vacations, Expedia CruiseShipCenters, Travelocity and Orbitz. Expedia, Inc.’s companies operate more than 100 branded points of sale in more than 60 countries. Expedia also powers travel bookings for over 10,000 partners such as airlines and hotels, consumer brands, and high traffic websites through Expedia Affiliate Network, 80% of which is powered by their API.[3] Expedia Inc. is listed on Nasdaq under the ticker symbol EXPE.[4]

History

Founded as a division of Microsoft in 1996, Expedia was spun off in 1999, and was later purchased by TicketMaster in 2001[5] (TicketMaster changed its name to USA Networks in 2001 and then InterActiveCorp in 2003[6]). IAC spun off its travel group of businesses under the Expedia, Inc. name in August 2005, including Expedia, Expedia Corporate Travel (now Egencia), TripAdvisor, Classic Vacations, eLong, Hotels.com, and Hotwire.com.[7] In late 2011, Expedia, Inc. spun out TripAdvisor Media Group, retaining its portfolio of travel transaction brands.[8] On December 21, 2012, Expedia bought a majority stake in travel metasearch engine Trivago in a combined cash and stock deal worth €477 million (approximately $630 million).[9]

According to Richard Barton, their first CEO, the word Expedia is derived from a combination of “exploration and speed” and contains the high-point scrabble letter "X."

On July 6, 2014, it was announced that Expedia, Inc had agreed to buy Wotif.com Holdings Ltd, an online travel company that covers the Asia-Pacific region. Wotif's brands include Wotif.com, lastminute.com.au and travel.com.au.[10]

In October 2014, the Australian Competition and Consumer Commission approved Expedia's acquisition of Australian reservation service Wotif.com for $US610 million.[11]

In January 2015, Expedia acquired Travelocity from Sabre Corp for $280 million. Expedia previously partnered with Travelocity to provide the technology platform for Travelocity's US and Canada points of sale.[12]

In February 2015, Expedia agreed to acquire Orbitz for $1.2 billion in cash.[13] In September 2015 Expedia got approval from US antitrust officials to acquire Orbitz.[14]

In 2015, Expedia bought HomeAway for $3.9 billion. [15]

South Carolina sales tax suit

On 18 January 2011 Travelscape, a subsidiary of Expedia Inc. based in Las Vegas, was ordered to pay $6.3 million in back sales taxes to South Carolina by the state's supreme court. Travelscape argued that South Carolina's efforts to tax online retailers located out-of-state violate the Dormant Commerce Clause. In a unanimous ruling the court determined that the company has a presence in the state sufficient to be required to collect sales tax. While Travelscape does not have physical facilities in South Carolina, the court determined that frequent sales trips made by its employees and the fact that the company furnished hotel rooms in the state establish its presence for tax purposes.[16]

Brands

Competitors

Mergers and acquisitions

Expedia's first acquisition was Travelscape for US$89.75 million and VacationSpot.com for US$80 million on March 17, 2000. It subsequently acquired Classic Custom Vacations in March 2002 for $78 million. The company has made four divestments, in which parts of the company are sold to another company. On December 31, 2000, Technology Crossover Ventures acquired a 7% minority stake in Expedia for $50 million. USA Networks acquired a 65% majority stake in the company on February 5, 2002, for $1.372 billion, and a year later, on August 8, 2003, USA Interactive acquired Expedia for $3.636 billion. Expedia was ultimately spun off as a separate entity with a value of $7.981 billion. The company made the most acquisitions in 2002, when it acquired three companies: Classic Custom Vacations, Metropolitan Travel, and Newtrade Technologies.[17]

In January 2015, Expedia acquired the online travel agency Travelocity from the tech firm Sabre Corporation for $280 million.[18]

Acquisitions

Date Company Business Country Value (USD) References
March 17, 2000 Travelscape Internet service provider  United States $89,750,000 [19]
March 17, 2001 Vacationspot Internet service provider  United States $70,850,000 [20]
March 11, 2002 Classic Custom Vacations[note 1] Travel agency  United States $78,000,000 [21]
July 11, 2002 Metropolitan Travel Travel agency  United States — [22]
October 28, 2002 Newtrade Technologies Reservation software  Canada — [23]
April 5, 2004 Activity World Travel and touring  United States — [24]
April 12, 2004 Egencia Travel agency  France — [25]
July 15, 2008 Venere.com Hotel Booking Engine  Italy €200,000,000 [26]
October 18, 2010 Mobiata Mobile App Developer  United States — [27]
April 27, 2012 VIA Travel Travel Management Company  Norway — [28]
March 12, 2013 trivago GmbH Hotel Metasearch Engine  Germany $564,000,000 [29]
July 6, 2014 Wotif Travel Agency  Australia $657,000,000 [30]
January 23, 2015 Travelocity Travel Agency  United States $280,000,000 [31]
September 17, 2015 Orbitz Travel Agency  United States $1.6×10^9 [32]
November 4, 2015 HomeAway Holiday Rental Service  United States $3.9×10^9 [33]

Divestitures

Date Acquirer Target company Target business Acquirer country Value (USD) References
December 31, 2000 Technology Crossover Ventures Expedia, Inc.[note 2] Online travel  United States $50,000,000 [34]
February 5, 2002 USA Networks Expedia, Inc.[note 3] Online travel  United States $1.372×10^9 [35]
August 8, 2003 USA Interactive Expedia, Inc.[note 4] Online travel  United States $3.636×10^9 [36]
August 9, 2005 IAC/InterActiveCorp Expedia Inc.[note 5] Online travel  United States $7.981×10^9 [37]

Locations

Expedia Inc. maintains headquarters in downtown Bellevue, Washington, in a building named the Expedia Building. Expedia occupies floors 3 to 18 (and part of 20) of the 20 floor building, which completed construction in 2008. Initially, it was widely speculated that Google wanted to occupy most of the building, but a crane accident in 2006 caused delay and Google backed out of the project.[38]

On April 2, 2015, Expedia announced that they would move their headquarters to the Interbay neighborhood of Seattle by the end 2018, purchasing the Amgen campus on the Elliott Bay waterfront for $228.9 million.[39][40][41] As part of the move, Expedia is proposing an expansion of office space at the 41-acre (17 ha) campus to 1.23 million square feet (114,000 m2) to accommodate 4,500 employees, designed by Bohlin Cywinski Jackson.[42][43]

The move was later pushed back to 2019, citing some logistical hurdles including the commute from the Eastside to Seattle as well as traffic congestion near the campus.[44] Incentives for employees to seek alternative forms of transportation were also announced, with the company exploring company shuttle services from park and rides in Redmond.[45]

Accolades

In 2008, Expedia was named to the most admired Internet companies in the United States list, released by Fortune. Expedia ranked third, after IAC and Google, and was followed by Amazon.com at fourth place.[46] National Travel, an affiliate of American Express Travel, announced it has added Expedia Vacations to its suite of travel vendors.

Expedia Inc. Ranks High on Fortune Most Admired List — For 2008, Expedia is ranked #3 in the Internet Service/Retailing industry, and is included in the list of most-admired companies in the state of Washington.[46]

Expedia Inc. Named One of “America’s Best Managed Companies” by Forbes — Forbes’ list of the 400 best managed, public American companies with $1 billion or more in revenues includes Expedia for the first time.[47]

Notes

  1. ↑ Classic Custom Vacations was acquired from Global Vacation Group.
  2. ↑ Technology Crossover Ventures acquired a 7% minority stake in Expedia Inc.
  3. ↑ USA Networks acquired a 65% majority stake of Expedia Inc.
  4. ↑ USA Interactive acquired remaining interests in Expedia Inc.
  5. ↑ IAC/InterActiveCorp spun off Expedia Inc.

References

  1. ↑ 1.0 1.1 1.2 1.3 [1], ExpediaInc.com, Financial Information 2014
  2. ↑ [2], ExpediaInc.com, Financial Information,
  3. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  4. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  5. ↑ Expedia Press Room - Press Releases
  6. ↑ USA Interactive to Change Name to InterActiveCorp iac.com
  7. ↑ IAC Completes Spin-Off of Expedia, Inc., ExpediaInc.com, press release
  8. ↑ Expedia, Inc. Completes Spin-Off of TripAdvisor, Inc., ExpediaInc.com, press release
  9. ↑ [3]
  10. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  11. ↑ Australia clears Expedia's $610 million Wotif.com takeover. Reuters, 1 October 2014
  12. ↑ Expedia Inc acquires Travelocity in $280 million deal. Reuters, 23 January 2015
  13. ↑ Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline
  14. ↑ http://www.cnet.com/news/expedias-1-3b-acquisition-of-rival-orbitz-wins-us-approval/
  15. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  16. ↑ Travelscape told to pay back sales-tax revenue, by Valerie Miller, Las Vegas Business Press, 31 January 2011
  17. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  18. ↑ Expedia Inc acquires Travelocity in $280 million deal. Reuters, 26 January 2015
  19. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  20. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  21. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  22. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  23. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  24. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  25. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  26. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  27. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  28. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  29. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  30. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  31. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  32. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  33. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  34. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  35. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  36. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  37. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  38. ↑ "Expedia moving to downtown Bellevue", article in Seattle P-I, June 27, 2007
  39. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  40. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  41. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  42. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  43. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  44. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  45. ↑ Lua error in package.lua at line 80: module 'strict' not found.
  46. ↑ 46.0 46.1 Lua error in package.lua at line 80: module 'strict' not found.
  47. ↑ Lua error in package.lua at line 80: module 'strict' not found.

External links

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