Online travel giant Expedia has just acquired online travel site Travelocity for $280 million in cash. A filing over at the SEC has confirmed the mammoth deal.
Expedia purchased Travelocity from its parent company, Sabre Holdings, where it will likely keep its rival Priceline at a better distance, and turn the Travelocity brand into something even better. Expedia's CEO and President, Dara Khosrowshahi, said that Travelocity's strong brand recognition was one of the big selling points for the company. With over 20 million travellers using Travelocity each month, you could see why, too.
The companies were already working together within a strategic marketing agreement that put together "Travelocity's strong brand" with Expedia's "best-in-class booking platform, supply base, and customer service" according to Khosrowshahi. 50% of Travelocity's revenue was coming in from Expedia, thanks to the latter company running its back-end services, according to reported numbers. Before the acquisition of Travelocity, Expedia is worth $10.8 billion, but it should gain a fair chunk of marketshare post acquisition, which will only bolster those numbers even more.