The North American online travel market is forecast to grow at the slowest pace compared to other economies such as Europe, Latin America and Asia-Pacific. Nevertheless, with estimated revenues of over $200 billion in 2013, it remains the biggest online travel market in the world and is expected to maintain its lead for at least the next few years. About three-fourths of the North American online travel sales are generated in the U.S., where Expedia is the market leader with over 40% share of bookings. Priceline controls about 16% of the U.S. online travel agency market, but has been aggressively trying to pare Expedia‘s lead in the country through brand advertising, partnerships to power bookings and acquiring Kayak last year, to increase the visibility of its brands in the domestic market. To counter rising competition from rival Priceline, Expedia inked a strategic marketing agreement with Travelocity last year. As per the terms of the deal, Expedia provides content, inventory, customer service and technology to Travelocity. In turn, the latter company focuses on marketing the Travelocity brand as a channel for Expedia, for which it receives a performance-based marketing fees. The deal pertains only to Travelocity’s websites in the U.S. and Canada. Expedia’s technology platform began powering the U.S. website in Q1 this year. The Canadian website was migrated to the new platform earlier this month. The deal with Travelocity yielded positive results for Expedia in Q1. The company sold approximately 36 million rooms globally, higher by 24% compared to the year-ago quarter and Travelocity accounted for 3% of that growth. The effect on air ticket volume growth was even more pronounced. About 30% more air tickets were sold by Expedia, of which 18% was contributed by Travelocity. We are encouraged by the growth in bookings considering that only Travelocity’s U.S. operations were included in the results. The Canadian operations will add to the growth this quarter onward. Get the full story at Forbes