By: MARTIN BLANC
Published: Jan 23, 2015 at 3:40 pm EST
The online tourism market was shaken today with the news of Expedia Inc. (NASDAQ:EXPE) acquiring the online travel agency, Travelocity, from Sabre Corp. (NASDAQ:SABR) for $280 million in cash. The deal is the continuation of a strategic marketing agreement between Expedia, Inc. and Travelocity, which enables the former to power the technology platforms for the latter’s websites in US and Canada. This agreement allows access to Expedia, Inc.’s supply as well its customer service and support program.
Expedia is one of the pioneers of online travel industry, which, over the years, has cemented its position and made an extensive brand portfolio, covering many aspects of the tourism and travel market. It provides travel information, and hotel and flight bookings, as well as localized websites in 31 countries to cater to local audiences, amid other services.
Expedia, Inc.’s President and CEO, Dara Khosrowshahi, commented on this development saying: “Travelocity is one of the most recognized travel brands in North America, offering thousands of travel destinations to more than 20 million travelers per month, The strategic marketing agreement we’ve had in place has been a marriage of Travelocity’s strong brand with our best-in-class booking platform, supply base, and customer service. Evolving this relationship strengthens the Expedia Inc. family’s ability to continue to innovate and deliver the very best travel experiences to the widest set of travelers, all over the world.”
Sabre is a leader in the global travel industry and provides technology, data, software, and distribution solutions. The company’s services are utilized by many players in the tourism and travel industry, from airlines to hotel management, in ensuring the success of operations such as reservations, revenue tracking, and flight and crew management. The President and CEO of the company, Tom Klein, acknowledged that Sabre and Expedia have had a successful partnership in boosting Travelocity’s business, and called today’s decision to be in the interest of the company.
Expedia, Inc. stock is up 2.16% today trading at $88.56, while Sabre stock is up 1.29% trading at $20.75 as of 3:25 PM EST.