Expedia, Inc

Expedia Inc.
Public
Traded as 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
Egencia
Venere
eLong
Classic Vacations
Expedia Local Expert
Revenue Increase US$ 4.030 billion (2012)[1]
Operating income Decrease US$ 431.7 million (2012)[1]
Net income Decrease US$ 303.0 million (2012)[1]
Total assets Increase US$ 7.085 billion (2012)[1]
Total equity Increase US$ 2.389 billion (2012)[1]
Employees 12,330 (December 2012)[2]
Website

Expedia Inc. is the American-based parent company to several global online

History

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
  • David Roche: President, Global Lodging Group
  • 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

Main article: 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

Main article: Hotwire.com

Venere.com

Easytobook.com

Competitors

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.[11]

Acquisitions

Date Company Business Country Value (USD) References
Template:Dts/out1 Travelscape Internet service provider  United States $89,750,000 [12]
Template:Dts/out1 Vacationspot Internet service provider  United States $70,850,000 [13]
Template:Dts/out1 Classic Custom Vacations[note 1] Travel agency  United States $78,000,000 [14]
Template:Dts/out1 Metropolitan Travel Travel agency  United States [15]
Template:Dts/out1 Newtrade Technologies Reservation software  Canada [16]
Template:Dts/out1 Activity World Travel and touring  United States [17]
Template:Dts/out1 Egencia Travel agency  France [18]
Template:Dts/out1 Mobiata Mobile App Developer  United States [19]
Template:Dts/out1 VIA Travel Travel Management Company  Norway [20]

Divestitures

Date Acquirer Target company Target business Acquirer country Value (USD) References
Template:Dts/out1 Technology Crossover Ventures Expedia, Inc.[note 2] Online travel  United States $50,000,000 [21]
Template:Dts/out1 USA Networks Expedia, Inc.[note 3] Online travel  United States $1,372,000,000 [22]
Template:Dts/out1 USA Interactive Expedia, Inc.[note 4] Online travel  United States $3,636,000,000 [23]
Template:Dts/out1 IAC/InterActiveCorp Expedia Inc.[note 5] Online travel  United States $7,981,000,000 [24]

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.[25]

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.[26] 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.[26]

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.[27]

Notes

References

External links

Companies portal
  • Company Homepage
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