Travelocity Surrenders to Expedia
Started by Chuckmonster on Friday, 23rd August 2013 4:40 pm
Travelocity has signed a deal to replace their booking engine with Expedia's, leaving Travelocity to focus on growing their brand. The deal reminds me of when Yahoo scrapped their good but not great search technology and replaced it with MSN Search, what is now Bing. Travelocity is basically surrendering the whole enchilada of commissions to Expedia for part of the enchilada.
The end result is that there will be one less point of rate comparison when booking travel. You'll get the same rates at Travelocity as you will at all the Expedia sites - Expedia, Hotels.com, TripAdvisor, BookingBuddy etc.
Not a buy out, or a merger. Instead, Travelocity has thrown their suitcases overboard. This might be a way to get around anti-trust or FTC approval and the like.
Good explanation Travelocity / Expedia deal.
Last response by HedgedBettor 5th September 6:59pm
HedgedBettor responded on Friday, 23rd August 2013
FTC/DOJ have the right to review joint ventures under the Hart-Scott-Rodino act (i.e. the normal process). But there's no way this would have had an antitrust problem, you have vigorous competition in online travel from Orbitz, aggregators like Kayak, and the airlines and hotels' own website. Wouldn't have even gotten a second request.
My question is why did they even bother? Travelocity is the definition of an also-ran. Sabre is a dying business but they might as well focus on what they're good at, which is the software used for booking by travel agents.
fersure replied on Friday, 23rd August 2013
HedgedBettor - school'n everyone with political knowledge. Nice one :)
HedgedBettor replied on Saturday, 24th August 2013
I do antitrust for a living...
Chuckmonster replied on Monday, 26th August 2013
HedgedBettor - thank you for being part of this community. your comments are always insightful and full of technical knowledge.
HedgedBettor replied on Thursday, 5th September 2013
Chuck - apologize for the late reply, but thank you!