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Expedia Acquires Travelocity for $280 Million

Expedia Acquires Travelocity for $280 Million. Friday’s announcement comes on the heels of a 2013 marketing agreement between Expedia Inc. and Travelocity in which the former powered the platform for the latter’s U.S. and Canadian websites while at the same time allowing access to its supply and customer service program.



Expedia Inc. stands to gain additional marketshare, particularly in North America, for the Travelocity acquisition. Expedia has already integrated Travelocity’s technology platforms and was bullish on the uplift from the 2013 agreement. In the third quarter of 2014, which are the latest available results, Travelocity contributed 4 percentage points to Expedia Inc.’s 24 percent global room night growth.

Expedia Inc. confirms it will retain the Travelocity brand, which will complement brands such as Expedia, Hotels.com, Hotwire, Venere etc. It would have been foolish not to keep the Travelocity brand because the whole value proposition is to tap into the allegiances of Travelocity loyalists. Travelocity services 20 million travelers a month.


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