Wednesday, 6 February 2013

Expedia, Inc.

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This article is about the company. For one of the many travel websites that it operates, see Expedia.
Expedia, Inc.
Type Public
Traded as NASDAQ: EXPE
NASDAQ-100 Component
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$ 3.449 billion (2011)[1]
Operating income Decrease US$ 479.6 million (2011)[2]
Net income Increase US$ 472.3 million (2011)[3]
Total assets Decrease US$ 6.505 billion (2011)[4]
Total equity Decrease US$ 2.305 billion (2011)[5]
Employees 9,480 (December 2011)[6]
Website www.expediainc.com
Expedia, Inc. is parent company to several online travel brands including Expedia.com, Hotels.com, Hotwire.com, Egencia (formerly Expedia Corporate Travel), Venere, Expedia Local Expert, Classic Vacations and eLong. Expedia, Inc.’s companies operate more than 100 branded points of sale in more than 60 countries. Expedia also powers travel bookings for a number of airlines and hotels, consumer brands, high traffic websites, and thousands of active affiliates through Expedia Affiliate Network. Expedia, Inc. is listed on Nasdaq under the ticker symbol EXPE.

Contents

History

A dark modernist building with a glass curtain wall facade
Expedia's headquarters
Founded as a division of Microsoft in 1996, Expedia was spun off in 1999, and was later purchased by TicketMaster in 2001[7] (TicketMaster changed its name to USA Networks in 2001 and then InterActiveCorp in 2003[8]). 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.[9] In late 2011, Expedia, Inc. spun out TripAdvisor Media Group, retaining its portfolio travel transaction brands.[10] 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).[11]

South Carolina sales tax suit

On 18 January 2011 Travelscape, a subsidiary of Expedia 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.[12]

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: Vice President, Venere
  • Clem Bason: President, Hotwire Group
  • Henrik Kjellberg: President, Expedia Affiliate Network
  • 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

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.[13]

Acquisitions

Date Company Business Country Value (USD) References
March 17, 2000 Travelscape Internet service provider  United States $89,750,000 [14]
March 17, 2001 Vacationspot Internet service provider  United States $70,850,000 [15]
March 11, 2002 Classic Custom Vacations[note 1] Travel agency  United States $78,000,000 [16]
July 11, 2002 Metropolitan Travel Travel agency  United States — [17]
October 28, 2002 Newtrade Technologies Reservation software  Canada — [18]
April 5, 2004 Activity World Travel and touring  United States — [19]
April 12, 2004 Egencia Travel agency  France — [20]
October 18, 2010 Mobiata Mobile App Developer  United States — [21]
April 27, 2012 VIA Travel Travel Management Company  Norway — [22]

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 [23]
February 5, 2002 USA Networks Expedia, Inc.[note 3] Online travel  United States $1,372,000,000 [24]
August 8, 2003 USA Interactive Expedia, Inc.[note 4] Online travel  United States $3,636,000,000 [25]
August 9, 2005 IAC/InterActiveCorp Expedia, Inc.[note 5] Online travel  United States $7,981,000,000 [26]

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.[27]

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.[28] 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.[28]
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.[29]

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. ^ 2011 10K, ExpediaInc.com, Financial Information,
  2. ^ 2011 10K, ExpediaInc.com, Financial Information,
  3. ^ 2011 10K, ExpediaInc.com, Financial Information,
  4. ^ 2011 10K, ExpediaInc.com, Financial Information,
  5. ^ 2011 10K, ExpediaInc.com, Financial Information,
  6. ^ 2011 10K, ExpediaInc.com, Financial Information,
  7. ^ Expedia Press Room - Press Releases
  8. ^ USA Interactive to Change Name to InterActiveCorp iac.com
  9. ^ IAC Completes Spin-Off of Expedia, Inc., ExpediaInc.com, press release
  10. ^ Expedia, Inc. Completes Spin-Off of TripAdvisor, Inc., ExpediaInc.com, press release
  11. ^ [1]
  12. ^ Travelscape told to pay back sales-tax revenue, by Valerie Miller, Las Vegas Business Press, 31 January 2011
  13. ^ "Expedia, Inc. Mergers and Acquisitions". Thomson Financial. Retrieved 2008-10-31.
  14. ^ "Expedia Inc acquires Travelscape.com (2000/03/17)". Thomson Financial. Retrieved 2008-10-28.
  15. ^ "Expedia Inc acquires Vacationspot.com (2001/03/17)". Thomson Financial. Retrieved 2008-10-28.
  16. ^ "Expedia Inc acquires Classic Custom Vacations from Global Vacation Group Inc (2002/03/11)". Thomson Financial. Retrieved 2008-10-28.
  17. ^ "Expedia Inc acquires Metropolitan Travel Inc (2002/07/11)". Thomson Financial. Retrieved 2008-10-28.
  18. ^ "Expedia Inc acquires Newtrade Technologies Inc (2002/10/28)". Thomson Financial. Retrieved 2008-10-28.
  19. ^ "Expedia Inc acquires Activity World (2004/04/05)". Thomson Financial. Retrieved 2008-10-28.
  20. ^ "Expedia Inc acquires Egencia.com (2004/04/12)". Thomson Financial. Retrieved 2008-10-28.
  21. ^ "Expedia Inc acquires Mobiata LLC (2010/10/18)". Thomson Financial. Retrieved 2011-06-06.
  22. ^ "Egencia Completes Acquisition of Nordic Travel Management Company VIA Travel (2012/5/3)".
  23. ^ "Technology Crossover Ventures acquires a minority stake in Expedia Inc from Microsoft Corp (2000/12/31)". Thomson Financial. Retrieved 2008-10-28.
  24. ^ "USA Networks Inc acquires Expedia Inc from Microsoft Corp (2002/02/05)". Thomson Financial. Retrieved 2008-10-28.
  25. ^ "USA Interactive acquires remaining interest in Expedia Inc from USA Networks Inc (2003/08/08)". Thomson Financial. Retrieved 2008-10-28.
  26. ^ "IAC/InterActiveCorp spins off Expedia Inc (2005/08/09)". Thomson Financial. Retrieved 2008-10-28.
  27. ^ "Expedia moving to downtown Bellevue", article in Seattle P-I, June 27, 2007
  28. ^ a b "America's Most Admired Companies 2008: Industry: Internet Services, Retailing". CNN.
  29. ^ "Expedia". Forbes.

External links

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