Remember when the online travel game was competitive? Okay, not so much. But now it’s getting less so. Last week, Expedia bought out competitor Travelocity. That’s just the beginning.
Expedia buys Orbitz for $1.6 billion dollars in cash, plus shares of stock. This deal includes all of Orbitz names, like ebookers and Cheap Tickets and Hotel Club. According to Expedia CEO and President Dara?Khosrowshahi, they chose to acquire Orbitz because of their strong brands and the impressive manpower behind those brands. They’re banking this acquisition will better service a more diverse clientele. Orbitz CEO Barney Harford is just as excited about this uniting. He hopes this merger will increase great offerings and deals to customers and partners alike. Apparently, this deal has been in the making for quite some time. Orbitz ?has been outsourcing to Expedia since 2013. Expedia wasn’t the only bidder for Orbitz, but I’m sure the many months of outsourcing made the difference. Now, Priceline is Expedia’s only major competitor in the US.
And the way it looks, Priceline is doing fairly well. Their main spokesperson, TV legend William Shatner, has made over $600 million since his the first commercial he did for them back in the 1990s. Their stocks are almost 65 percent higher than it was just a year ago. They’ve had a very good last couple of quarters. They have a very strong international travel base, especially Europe and Asia. But they’ll even tell you the US travel base is better than Europe’s at the present time. I think Expedia has a better edge in the Americas’ travel market. And America’s economy is getting better (well, according to reports). Everyone I know uses Expedia for their travel needs. I’ve been a loyal Expedia customer for many years. And I’m confident Orbitz will boost Expedia’s sales. I’d wish there were more competitors in this online travel race, but we have what we have. This is going to be an exciting race. Who do you think will win: Expedia or Priceline?