Expedia, Inc.

Expedia Inc.

Type	Public
Traded as	NASDAQ: EXPE NASDAQ-100 Component 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 eLong Classic Vacations Expedia Local Expert
Revenue	US$ 4.030 billion (2012)[1]
Operating income	US$ 431.7 million (2012)[1]
Net income	US$ 303.0 million (2012)[1]
Total assets	US$ 7.085 billion (2012)[1]
Total equity	US$ 2.389 billion (2012)[1]
Employees	12,330 (December 2012)[2]
Website	www.expediainc.com

Expedia Inc. is the American-based parent company to several global online travel brands including Expedia.com, Hotels.com, Hotwire.com, trivago, Egencia (formerly Expedia Corporate Travel), Venere, Expedia Local Expert, Classic Vacations and eLong. 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

Expedia's headquarters

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]

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.^[10]

Officers and directors

Corporate management

• Barry Diller: Chairman of the Board, Senior Executive
• Victor A. Kaufman: Vice Chairman
• Dara Khosrowshahi: President and CEO
• Mark Okerstrom: Chief Financial Officer
• Edmond Mesrobian: Chief Technology Officer

Business management

• Dara Khosrowshahi: President, Expedia Worldwide
• Laurens Leurink: President, Lodging Partner Services
• Scott Booker: President, Hotels.com Worldwide
• Arthur Hoffman: President, Expedia Affiliate Network
• Henrik Kjellberg: President, Hotwire Group
• Rob Greyber: President, Egencia
• Connie Symes: SVP, Human Resources
• Tucker Moodey: SVP, Customer Operations
• Greg Bernd: Co-President, Classic Vacations
• David Hu: Co-President, Classic Vacations
• Guangfu Cui: Chief Executive Officer, eLong, Inc.

Brands

Classic Vacations

eLong.com

Egencia Previously known as Expedia Corporate Travel.

Expedia

Expedia Affiliate Network

Expedia Local Expert

Hotels.com

Hotels.com is an operating company of Expedia Inc. that provides reservation services for hotel rooms and other places to stay.

The company was founded in Dallas, TX in 1991 as Hotel Reservations Network (HRN) by Dave Litman and Bob Diener as a toll-free telephone service, offering consumers a one-stop source for discounted hotel rooms in major cities. In 2002 HRN introduced Hotels.com and the brand 1-800-2-Hotels.

Hotwire Group

Venere.com

trivago

trivago is a hotel metasearch engine that compares prices for hotels worldwide, aggregated from over 200 booking websites. The company is based in Düsseldorf, Germany, and maintains over 40 different international platforms of its site. ^[11]

Competitors

• BookIt.com
• Booking.com
• Priceline.com
• Orbitz
• Travelocity

Mergers and acquisitions

Expedia's first and largest 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.^[12]

Acquisitions

Date	Company	Business	Country	Value (USD)	References
02000-03-17March 17, 2000	Travelscape	Internet service provider	United States	$700789750000000000089,750,000	[13]
02001-03-17March 17, 2001	Vacationspot	Internet service provider	United States	$700770850000000000070,850,000	[14]
02002-03-11March 11, 2002	Classic Custom Vacations[note 1]	Travel agency	United States	$700778000000000000078,000,000	[15]
02002-07-11July 11, 2002	Metropolitan Travel	Travel agency	United States	—	[16]
02002-10-28October 28, 2002	Newtrade Technologies	Reservation software	Canada	—	[17]
02004-04-05April 5, 2004	Activity World	Travel and touring	United States	—	[18]
02004-04-12April 12, 2004	Egencia	Travel agency	France	—	[19]
02010-10-18October 18, 2010	Mobiata	Mobile App Developer	United States	—	[20]
02012-04-27April 27, 2012	VIA Travel	Travel Management Company	Norway	—	[21]

Divestitures

Date	Acquirer	Target company	Target business	Acquirer country	Value (USD)	References
02000-12-31December 31, 2000	Technology Crossover Ventures	Expedia, Inc.[note 2]	Online travel	United States	$700750000000000000050,000,000	[22]
02002-02-05February 5, 2002	USA Networks	Expedia, Inc.[note 3]	Online travel	United States	$70091372000000000001,372,000,000	[23]
02003-08-08August 8, 2003	USA Interactive	Expedia, Inc.[note 4]	Online travel	United States	$70093636000000000003,636,000,000	[24]
02005-08-09August 9, 2005	IAC/InterActiveCorp	Expedia Inc.[note 5]	Online travel	United States	$70097981000000000007,981,000,000	[25]

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.^[26]

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.^[27] 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.^[27]

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.^[28]

Notes

References

External links

• Company Homepage

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