Expedia is an online travel service company that provides information and booking services for flights, hotels, and rental cars. It allows customers to plan and purchase travel services in one place. Expedia was originally part of Microsoft but became an independent public company in 2005. It is now the largest player in the online travel market with over a third of total online sales. Expedia's vision is to create a global travel marketplace that enables suppliers to reach more customers while giving consumers the ability to research and book travel services easily.
3. Vision “ To create a global travel marketplace , enable travel service suppliers to extend their marketing reach, and giving consumers the ability to research, plan, and purchase travel services ”
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5. Young people, families (+kids), seniors, groups with specific needs on: special trips (sightseeing, Disney Land, adventures, romantic, etc), activities (sport, wellness), hotels and prices Business people with specific needs on exclusive deals,(business-) hotels, check-In Customer Segmentation Business travelers Customer Holiday travelers
Air revenue < 15% of Expedia’s worldwide annual revenue 90% of airplane tickets sold over Expedia’s online properties are agency transactions, in which Customer pays supplier directly, Expedia collects its remuneration after travel Lower revenue margin
Expedia receives cash upfront from travelers, pays hoteliers several weeks later Some control over pricing, higher margins & ability to package opaquely with other products Typically 1 - 2 year contracts with major chain lodging properties
Two primary businesses 1 Trip Advisor Media Network (leading global collection If user-generated content sites) 2 Expedia Media Solutions (monetizing global Expedia, Hotels & Hotwire sites beyond transactions) TTM 9.30.09 revenue of nearly $300mm - TravelAds is a new advertising program that gives your hotel access to premium placement within search results on Expedia and Hotels.com. Similar to traditional search engines, you set your price-per-click and only pay when a customer clicks on your ad. This pay-per-click auction model is great for any budget and delivers your targeted message to a qualified customer at the most influential time. -
Hotels.com operates 73 local country sites, throughout North and South America, Europe, the Middle East and the Asia-Pacific region. Egencia, the fifth largest corporate travel management company in the world, has local-language sites in 24 countries worldwide. Localize version of expedia websites more
Travelocity 26 global sites global sites: IgoUgo® Cheap To Travel holiday autos® lastminute.com World Choice Travel® Zuji Problem Web technology trend to be cheap So, traditional travel agency offer cheap room on their own website Same customer No inventory product for Expedia Ex Intercontinental Hotel group that has 3500 hotels deal with Travelocity EX Low cost airline want to sell directly to customer because it has low margin Raises marketing cost
Travelocity 26 global sites global sites: IgoUgo® Cheap To Travel holiday autos® lastminute.com World Choice Travel® Zuji Problem Web technology trend to be cheap So, traditional travel agency offer cheap room on their own website Same customer No inventory product for Expedia Ex Intercontinental Hotel group that has 3500 hotels deal with Travelocity EX Low cost airline want to sell directly to customer because it has low margin Raises marketing cost
Support infrastructure combine of outsource and in-house call center