Expedia, Inc.

Expedia, Inc.
Public
Traded as NASDAQ: EXPE
NASDAQ-100 Component
S&P 500 Component
Industry Travel
Technology
Founded October 22, 1996 (1996-10-22) (as a division of Microsoft)
Headquarters Bellevue, Washington, U.S.
Key people
 Barry Diller (Chairman)
Dara Khosrowshahi (CEO)
Mark Okerstrom (CFO)
Products CarRentals.com
CheapTickets
Classic Vacations
Ebookers
Egencia
Expedia.com
Expedia Affiliate Network
Expedia Local Expert
Expedia CruiseShipCenters
Expedia Global Partner Solutions
HomeAway
Hotels.com
Hotwire Group
Orbitz
Travelocity
trivago
Venere.com
wotif.com
Revenue Increase US$8.774 billion (2016)[1]
Increase US$461.7 million (2016)[1]
Decrease US$281.8 million (2016)[1]
Total assets Increase US$15.778 billion (2016)[1]
Owner Liberty Interactive (7.88%)[2]
Barry Diller (4.00%)[2]
Number of employees
 20,000 (December 2016)[3]
Website www.expediainc.com

Expedia, Inc. is an American travel company that owns and operates several international global online travel brands, primarily travel fare aggregator websites and travel metasearch engines including Expedia.com, Hotels.com, Hotwire.com, trivago, Venere.com, Travelocity, Orbitz, and HomeAway.

The company operates more than 200 travel booking websites in more than 75 countries, and has listings for more than 350,000 hotels and 500 airlines.[4]

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

The company has received many awards and accolades.[5]

Brands

History

Founded as a division of Microsoft in October 1996, Expedia was spun off in 1999.

In 2003, it was purchased by IAC/InterActiveCorp.[6]

In August 2005, IAC spun off Expedia Inc., which owned its travel group of businesses, including Expedia, Expedia Corporate Travel (now Egencia), TripAdvisor, Classic Vacations, eLong, Hotels.com, and Hotwire.com.[7]

In December 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][10][11]

In 2012, Expedia's Egencia unit acquired Via Travel, the largest travel company in Norway.[12] The acquisition boosted Expedia's total sales, making it the top earning travel company for 2013.

In 2014, Expedia acquired Wotif.com for $658 million.[13]

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.[14]

In 2015, Expedia acquired Orbitz for $1.2 billion in cash.[15]

In 2015, Expedia bought HomeAway for $3.9 billion.[16]

In March 2017, Chelsea Clinton was named to the board of Expedia. In her newly named position, Mrs. Clinton will get $45,000 a year in cash, plus $250,000 a year in stock vesting over three years. What Mrs. Clinton’s responsibilities will be at the online travel-booking company is unclear.[17][18]

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.[19]

In January 2015, Expedia acquired the online travel agency Travelocity from the tech firm Sabre Corporation for $280 million.[20]

Acquisitions

Date Company Business Country Value (USD) References
March 17, 2000 Travelscape Internet service provider  United States $89,750,000 [21]
March 17, 2001 Vacationspot Internet service provider  United States $70,850,000 [22]
March 11, 2002 Classic Custom Vacations[note 1] Travel agency  United States $78,000,000 [23]
July 11, 2002 Metropolitan Travel Travel agency  United States — [24]
October 28, 2002 Newtrade Technologies Reservation software  Canada — [25]
April 5, 2004 Activity World Travel and touring  United States — [26]
April 12, 2004 Egencia Travel agency  France — [27]
July 15, 2008 Venere.com Hotel Booking Engine  Italy €200,000,000 [28]
October 18, 2010 Mobiata Mobile App Developer  United States — [29]
April 27, 2012 VIA Travel Travel Management Company  Norway — [30]
March 12, 2013 trivago GmbH Hotel Metasearch Engine  Germany $564,000,000 [31]
July 6, 2014 Wotif Travel Agency  Australia $657,000,000 [32]
January 23, 2015 Travelocity Travel Agency  United States $280,000,000 [33]
September 17, 2015 Orbitz Travel Agency  United States $1,600,000,000 [34]
November 4, 2015 HomeAway Holiday Rental Service  United States $3,900,000,000 [35]

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 [36]
February 5, 2002 USA Networks Expedia, Inc.[note 3] Online travel  United States $1,372,000,000 [37]
August 8, 2003 USA Interactive Expedia, Inc.[note 4] Online travel  United States $3,636,000,000 [38]
August 9, 2005 IAC/InterActiveCorp Expedia Inc.[note 5] Online travel  United States $7,981,000,000 [39]

South Carolina sales tax suit

On January 18, 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.[40]

Office locations

Expedia Inc. maintains headquarters in downtown Bellevue, Washington, in a building named the Expedia Building. Expedia occupies floors 3 to 19 (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.[41]

On April 2, 2015, Expedia announced that it would move its headquarters to the Interbay neighborhood of Seattle by the end 2018, purchasing the Amgen campus on the Elliott Bay waterfront for $228.9 million.[42][43][44] 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.[45][46]

The move was later delayed to 2019, citing some logistical hurdles including the commute from the Eastside to Seattle as well as traffic congestion near the campus.[47] 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.[48]

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.[49] National Travel, an affiliate of American Express Travel, announced it has added Expedia Vacations to its suite of travel vendors.

For 2008, Expedia was ranked #3 in the Internet Service/Retailing industry on Fortune Most Admired List, and was included in the list of most-admired companies in the state of Washington.[49]

In 2008 Expedia Inc. was named one of "America's Best Managed Companies" by Forbes, its list of the 400 best managed, public American companies with $1 billion or more in revenues included Expedia for the first time.[50]

See also

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 2 3 4 Expedia, Inc. Reports Fourth Quarter and Full Year 2014 Results
  2. 1 2 "Liberty Interactive".
  3. ↑ ExpediaInc.com, Investor FAQs
  4. ↑ Expedia, Inc.: About Us
  5. ↑ Expedia, Inc.: Awards & Accolades
  6. ↑ SAUL HANSELL (March 20, 2003). "Big Holder Buying Rest Of Expedia In Stock Deal". New York Times.
  7. ↑ "IAC Completes Spin-Off of Expedia, Inc." (Press release). PRNewswire. August 9, 2005.
  8. ↑ "Expedia, Inc. Completes Spin-off of TripAdvisor, Inc." (Press release). PRNewswire. December 20, 2011.
  9. ↑ Colleen Taylor (December 21, 2012). "Expedia Buys Majority Stake In European Hotel Search Site Trivago For $632 Million". TechCrunch.
  10. ↑ Chapman, Lizette (December 21, 2012). "Expedia Acquires Majority of Trivago in Win for Insight Ventures". Wall Street Journal. ISSN 0099-9660.
  11. ↑ "Expedia to acquire stake in German hotel site". Reuters. December 21, 2012.
  12. ↑ Savitz, Eric (March 27, 2012). "Expedia's Egencia Unit Buys Norway-Based VIA Travel".
  13. ↑ "Expedia Agrees to Buy Wotif for $658M". CBS News. Associated Press. July 7, 2014.
  14. ↑ Dastin, Jeffrey (January 23, 2015). "Expedia Inc acquires Travelocity in $280 million deal".
  15. ↑ Lunden, Ingrid (February 12, 2015). "Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline".
  16. ↑ "Expedia to Buy HomeAway for $3.9 Billion". New York Times. Associated Press. November 4, 2015.
  17. ↑ Kelly Riddell (March 20, 2017). "Chelsea Clinton gets $250K/year Expedia board seat, just 'cuz". Washington Times. Retrieved August 8, 2017.
  18. ↑ Morgan, Richard (March 17, 2017). "Chelsea Clinton lands cushy Expedia board gig". New York Post. Retrieved August 8, 2017.
  19. ↑ "Expedia, Inc. Mergers and Acquisitions". Thomson Financial. Retrieved October 31, 2008.
  20. ↑ Expedia Inc acquires Travelocity in $280 million deal. Reuters, January 26, 2015
  21. ↑ "Expedia Inc acquires Travelscape.com". Thomson Financial. March 17, 2000. Retrieved October 28, 2008.
  22. ↑ "Expedia Inc acquires Vacationspot.com". Thomson Financial. March 17, 2001. Retrieved October 28, 2008.
  23. ↑ "Expedia Inc acquires Classic Custom Vacations from Global Vacation Group Inc". Thomson Financial. March 11, 2002. Retrieved October 28, 2008.
  24. ↑ "Expedia Inc acquires Metropolitan Travel Inc". Thomson Financial. July 11, 2002. Retrieved October 28, 2008.
  25. ↑ "Expedia Inc acquires Newtrade Technologies Inc". Thomson Financial. October 28, 2012. Retrieved October 28, 2008.
  26. ↑ "Expedia Inc acquires Activity World". Thomson Financial. April 5, 2004. Retrieved October 28, 2008.
  27. ↑ "Expedia Inc acquires Egencia.com". Thomson Financial. April 12, 2004. Retrieved October 28, 2008.
  28. ↑ "Expedia acquires Venere but what does it mean?Expedia acquires Venere but what does it mean?". Mediaroom.Expedia. Retrieved July 17, 2008.
  29. ↑ "Expedia Inc acquires Mobiata LLC". Thomson Financial. October 18, 2010. Retrieved June 6, 2011.
  30. ↑ "Egencia Completes Acquisition of Nordic Travel Management Company VIA Travel". May 3, 2012.
  31. ↑ "Expedia Completes Acquisition Of Majority Interest In trivago (2013/3/13)".
  32. ↑ "Expedia Scores $703M Deal for Australia's Wotif (2014/07/07)". FOXBusiness. Retrieved July 7, 2014.
  33. ↑ "Expedia Buys Travelocity for 280 Million in Cash". Techcrunch. Retrieved January 23, 2015.
  34. ↑ "Expedia begins integration of Orbitz after deal closes". Reuters.
  35. ↑ Lardinois, Frederic. "Expedia Acquires Airbnb Rival HomeAway For $3.9B". TechCrunch. Retrieved November 5, 2015.
  36. ↑ "Technology Crossover Ventures acquires a minority stake in Expedia Inc from Microsoft Corp (2000/12/31)". Thomson Financial. Retrieved October 28, 2008.
  37. ↑ "USA Networks Inc acquires Expedia Inc from Microsoft Corp". Thomson Financial. February 5, 2002. Retrieved October 28, 2008.
  38. ↑ "USA Interactive acquires remaining interest in Expedia Inc from USA Networks Inc". Thomson Financial. August 8, 2003. Retrieved October 28, 2008.
  39. ↑ "IAC/InterActiveCorp spins off Expedia Inc". Thomson Financial. August 9, 2005. Retrieved October 28, 2008.
  40. ↑ Travelscape told to pay back sales-tax revenue, by Valerie Miller, Las Vegas Business Press, January 31, 2011
  41. ↑ "Expedia moving to downtown Bellevue", article in Seattle P-I, June 27, 2007
  42. ↑ Office of Mayor Ed Murray (April 2, 2015). "Mayor Murray announces Expedia, Inc. headquarters will move to Seattle" (Press release). Office of the Mayor of Seattle. Retrieved December 5, 2015.
  43. ↑ "Expedia’s new Seattle HQ will have 4,500 employees in a few years". The Seattle Times. April 2, 2015. Retrieved December 5, 2015.
  44. ↑ "Expedia Announces Plans for New Headquarters in Seattle" (Press release). Expedia, Inc. April 2, 2015. Retrieved December 5, 2015.
  45. ↑ Bhatt, Sanjay (August 6, 2015). "Expedia has long-term plan to vastly expand new campus". The Seattle Times. Retrieved December 5, 2015.
  46. ↑ "Expedia picks BCJ to design new HQ". Seattle Daily Journal of Commerce. August 4, 2015. Retrieved December 5, 2015.
  47. ↑ Demmitt, Jacob (September 23, 2015). "Expedia pushes back target date for Seattle move until 2019, will test new commuter shuttle". GeekWire. Retrieved December 5, 2015.
  48. ↑ Bhatt, Sanjay (September 24, 2015). "Expedia offers incentives to reduce staff solo commutes". The Seattle Times. Retrieved December 5, 2015.
  49. 1 2 "America's Most Admired Companies 2008: Industry: Internet Services, Retailing". CNN.
  50. ↑ "Expedia". Forbes.
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