January 26, 2015

Travelocity joins Expedia’s brand portfolio

Expedia on Friday made official what the industry suspected would happen, buying Travelocity from Sabre for $280 million in cash. Expedia already had controlled much of Travelocity for the past year, using its booking platform to power the site. Selling Travelocity was “a next logical step,” Sabre CEO Tom Klein said.

With the acquisition, Expedia assumes Travelocity’s branding and marketing in addition to the transactional part of the business it already was managing. Expedia CEO Dara Khosrowshahi called Travelocity “one of the most recognized brands in North America."

Expedia hasn’t spelled out what it will do with the Travelocity brand, but Expedia has maintained the brand identity of plenty of its divisions, including Hotels.com, Hotwire and Trivago.

Expedia’s share of U.S. online travel market held steady at 42% in 2012 and 2013, and would’ve jumped to 56% factoring in Travelocity, according to a report released in December by Phocuswright. However, the company might have lost share last year with Priceline Group aggressively marketing Booking.com in the U.S.

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