Expedia Group Explained

Expedia Group, Inc.
Type:Public
Founder:Rich Barton
Predecessor:Liberty Expedia Holdings
Industry:Travel technology
Revenue: (2023)
Operating Income: (2023)
Net Income: (2023)
Assets: (2023)
Equity: (2023)
Num Employees:17,100 (2023)
Location:Seattle, Washington, United States
Foundation: (as a division of Microsoft)
Footnotes:[1]

Expedia Group, Inc. is an American travel technology company that owns and operates travel fare aggregators and travel metasearch engines, including Expedia, Hotels.com, Vrbo, Travelocity, Hotwire.com, Orbitz, Ebookers, CheapTickets, CarRentals.com, Expedia Cruises, Wotif, and Trivago.[1] Over 3 million lodging facilities and flights on over 500 airlines are bookable on the company's websites.[1] It has 16,500 employees, and its headquarters are located in Seattle, Washington.

The word "Expedia" is derived from a combination of "exploration" and "speed".[2]

History

Founded as a division of Microsoft in October 1996,[3] Expedia was spun off into a public company in 1999.[4] IAC, known at the time as USA Networks Inc, acquired a controlling interest in the company in 2001[5] and acquired the remainder of the company in 2003.[6] In August 2005, IAC spun off the company.[7] In December 2011, Expedia, Inc. spun off TripAdvisor.[8]

Management history

In 2003, Rich Barton resigned as CEO and was replaced by Erik Blachford.[9]

In December 2004, Dara Khosrowshahi was announced as CEO.[10]

In March 2017, Chelsea Clinton was named to the board of directors of Expedia, with compensation of $45,000 a year in cash, plus $250,000 a year in stock vesting over three years.[11]

In August 2017, Mark Okerstrom became the President and CEO of Expedia, Inc.[12]

In December 2019, Mark Okerstrom and Alan Pickerill resigned as CEO and CFO, respectively. At that time, Expedia Group's chairman, Barry Diller, took over day-to-day operations, while the Chief Strategy Officer, Eric Hart, became acting CFO.[13]

In February 2020, Expedia announced it was cutting 3,000 jobs, roughly 12% of the workforce, citing a "disappointing 2019." Diller, in his role as acting CEO, stated the company had become "sclerotic and bloated" and that employees were "all life and no work."[14]

In April 2020, Peter Kern was appointed as CEO of Expedia Group. He was the highest paid CEO in the S&P 500 in 2021, with $296 million in total compensation.[15]

Office and headquarters history

In 2015, Expedia announced that it would move its headquarters to the Interbay neighborhood of Seattle, purchasing the Amgen campus on the Elliott Bay waterfront for $228.9 million and investing an additional $900 million on renovation and expansion of the 41acres campus to 1.23e6sqft. The first employees moved into the new headquarters in October 2019.[16]

In 2021, Expedia built a new campus in DLF Cyber Park, Gurugram, India.[17]

Acquisition history

DateCompanyBusinessValue (USD)References
TravelscapeInternet service provider$[18]
VacationspotInternet service provider$[19]
Classic Custom Vacations[20] Travel agency$[21]
Metropolitan TravelTravel agency[22]
Newtrade TechnologiesReservation software[23]
Activity WorldTravel and touring[24]
EgenciaTravel agency[25]
Venere.comHotel Booking Engine[26]
MobiataMobile App Developer[27]
Your Unlimited AdventuresTravel Management Company$[28]
VIA TravelTravel Management Company[29]
trivago GmbHHotel Metasearch Engine€477,000,000 in cash and stock[30] [31] [32]
Go Adventure ProTravel Agency$[33]
WotifTravel Agency$[34]
The Ocean AdventuresTravel Agency$[35]
Around the World Vacation RentalsTravel Agency$[36]
TravelocityTravel Agency$[37] [38]
OrbitzTravel Agency$[39] [40]
Mizuho Finances CorpTravel Agency$[41]
November 4, 2015HomeAwayHoliday Rental Service$[42] [43]
October 25, 2018PillowShort-Term Rental Management[44]
October 25, 2018ApartmentJetShort-Term Rental Management[45]
August 22, 2019CanadaStaysHoliday Rental Service[46]

In July 2015, Expedia made an investment in Wingz.[47]

Divestitures

DateAcquirerTarget companyValue (USD)References
EviivoRezOvation and WebervationsUnknown[48]
Najafi CompaniesClassic VacationsUnknown[49]
American Express Global Business TravelEgenciaUnknown[50] [51]

Criticism and legal issues

Delays in refunds of flights cancelled due to COVID-19

In 2020, during the COVID-19 pandemic, customers complained regarding the process to get refunds for cancelled flights. Customers complained of excessively long call times and being unable to get through to a representative.[52] This led to many lawsuits.[53] [54]

Involvement in Israeli settlements

See also: List of companies operating in West Bank settlements.

On February 12, 2020, Expedia Group was included on a list of companies operating in West Bank settlements involved in activities that "raised particular human rights concerns" published by the United Nations Human Rights Council. The company was categorized under "the provision of services and utilities supporting the maintenance and existence of settlements".[55] [56]

False advertising and trademark violation

In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC filed a class-action lawsuit in California accusing the company and its partners of violating trademark rights of numerous independent hotel and motel establishments by running advertising implying that consumers could book reservations for those hotels on Expedia even though Expedia had no relationship with those hotels, in violation of the Lanham Act, and also falsely noting that hotels with which the company had no relationship were "sold out".[57] In April 2021, the lawsuit was settled and the company promised not to engage in false advertising.[58]

Australian false advertising suit

See main article: article.

South Carolina sales tax suit

In January 2011, Travelscape, a subsidiary of Expedia Inc. based in the Las Vegas Valley, was ordered to pay $6.3 million in back sales taxes to South Carolina by the South Carolina 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, while Travelscape does not have physical facilities in South Carolina, 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 and is sufficient to be required to pay sales tax.[59]

Notes and References

  1. Web site: Expedia Group, Inc. 2023 Annual Report (Form 10-K) . February 9, 2024 . U.S. Securities and Exchange Commission.
  2. News: Expedia Rewards: The Complete Program Guide . Becky . Pokora . . November 3, 2022.
  3. Web site: Microsoft Expedia Travel Services Debuts on the Web . . October 22, 1996 .
  4. News: Microsoft to Spin Off Expedia . Stein . Tom . SFGate. September 24, 1999.
  5. News: USA Networks to buy control of Expedia . . July 16, 2001.
  6. News: Big Holder Buying Rest Of Expedia In Stock Deal . Saul . Hansell . . March 20, 2003 . limited.
  7. News: IAC completes spinoff of Expedia travel group . . August 10, 2005.
  8. Expedia, Inc. Completes Spin-off of TripAdvisor, Inc. . . December 20, 2011.
  9. News: Expedia Profit Soars; CEO Barton Resigns . . . February 6, 2003.
  10. Dara Khosrowshahi to Succeed Erik Blachford as IAC Travel CEO . . November 9, 2004.
  11. News: Expedia names Chelsea Clinton to board of directors . Jackie . Wattles . . March 17, 2017.
  12. News: Expedia, Inc. Announces New CEO . . August 30, 2017.
  13. News: Expedia boots out CEO and CFO, puts Barry Diller in charge . . December 4, 2019.
  14. News: Expedia cutting 3,000 jobs following 'disappointing' year . Rosoff . Matt . . February 25, 2020.
  15. Web site: Men dominated 2021 ranks of highest-paid CEOs in S&P 500 . Hudgens . Chris . . January 23, 2023.
  16. News: Expedia campus opens next week to first employees — the Wi-Fi rocks await . Katherine Anne . Long . . October 2, 2019.
  17. Expedia New Office . . September 9, 2021.
  18. News: Expedia acquires Las Vegas company Travelscape.com for $95 million . . January 31, 2000.
  19. News: Expedia Sets Plans to Acquire Two Online Lodging Firms. Don . Clark . . February 1, 2000.
  20. Classic Custom Vacations was acquired from Global Vacation Group.
  21. Expedia.Com Expedia, Inc. Completes Acquisition Of Classic Custom Vacations . Expedia . March 12, 2002.
  22. News: Expedia agrees to acquire Metropolitan Travel . . July 10, 2002 . subscription.
  23. News: Expedia to acquire Newtrade to enhance merchant hotel product . . October 14, 2002.
  24. News: Expedia agrees to buy Hawaiian tour seller . . March 30, 2004 . subscription.
  25. News: Expedia buys Egencia . Drew . Cullen . . March 29, 2004 .
  26. News: Expedia Buying European Hotels Site Venere . Robert . Andrews . . July 15, 2008.
  27. News: Expedia Acquires FlightTrack App Developer Mobiata . Leena . Rao . . November 18, 2010.
  28. News: Expedia's Egencia Unit Buys Your Unlimited Adventures . Savitz . Eric. . July 21, 2011.
  29. News: Expedia's Egencia Unit Buys Norway-based VIA Travel . Savitz . Eric. . March 27, 2012.
  30. News: Expedia Buys Majority Stake In European Hotel Search Site Trivago For $632 Million . Colleen . Taylor . . December 21, 2012.
  31. News: Expedia Acquires Majority of Trivago in Win for Insight Ventures . Chapman . Lizette . . 0099-9660 . December 21, 2012 . subscription.
  32. News: Expedia to acquire stake in German hotel site . Karen . Jacobs . . December 21, 2012.
  33. News: Expedia acquired Go Adventure Pro by Felimo Travels company in Mexico . . . May 17, 2013.
  34. News: Expedia Agrees to Buy Wotif for $658M . . . July 7, 2014.
  35. News: Expedia acquired The Ocean Adventures travel company in Mexico . . . October 10, 2014.
  36. News: Expedia acquired Arround the World Vacation Rentals company in Mexico . . . January 14, 2015.
  37. News: Expedia Buys Travelocity for 280 Million in Cash . . January 23, 2015 . limited.
  38. News: Expedia Inc acquires Travelocity in $280 million deal . Dastin . Jeffrey . . January 23, 2015.
  39. News: Expedia begins integration of Orbitz after deal closes . . September 17, 2015.
  40. News: Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline . Lunden . Ingrid . . February 12, 2015.
  41. News: Expedia acquired Mizuho Finances Corp company in Mexico . . . September 28, 2015.
  42. News: Expedia Acquires Airbnb Rival HomeAway For $3.9B . . Frederic . Lardinois . November 4, 2015.
  43. News: Expedia to Buy HomeAway for $3.9 Billion. . . November 4, 2015 . limited.
  44. News: Expedia Buys Pillow and ApartmentJet, Moves More Into Airbnb's Turf . Al-Muslim . Aisha . . October 25, 2018 . subscription.
  45. News: Expedia acquires 2 startups that make it easier to list apartments on HomeAway . Levy . Nat . . October 25, 2018.
  46. News: Expedia Group fully acquires CanadaStays to boost vacation rental presence up north . Jill . Menze . Phocuswire . August 22, 2019.
  47. News: Wingz Raises $11 Million To Disrupt Airport Rides, Plans Nationwide Expansion. . Jean-Baptiste . Su . January 25, 2016.
  48. eviivo Expands Into North America With Purchase of Expedia Group's RezOvation and Webervations Travel Management Software Services . . October 4, 2018.
  49. News: Expedia Group is selling vacation-packager Classic Vacations . Jeri . Clausing . . March 1, 2021.
  50. Web site: American Express Global Business Travel completes acquisition of Egencia from Expedia Group . November 3, 2021 . egencia.com.
  51. Web site: American Express Global Business Travel completes acquisition of Egencia from Expedia Group . egencia.com . November 2, 2021.
  52. News: Consumers grow frustrated with Expedia over COVID-19 refunds . Todd . Ulrich . . February 5, 2021.
  53. News: Traveler sues Expedia for refusing refunds on canceled flights during COVID-19 pandemic . USA Today . September 9, 2020.
  54. News: Hotels Accuse Expedia, Orbitz of Brazen Deceit . . MATTHEW . RENDA . August 19, 2016.
  55. News: UN rights office issues report on business activities related to settlements in the Occupied Palestinian Territory . . February 12, 2020 .
  56. News: Database of all business enterprises involved in certain activities relating to Israeli settlements in East Jerusalem and the West Bank (A/HRC/43/71) . . February 14, 2020.
  57. Web site: Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. et al . . August 17, 2016.
  58. News: Expedia Settles False Advertising Class Action With Hotels . NICHOLAS . IOVINO . . April 9, 2021.
  59. News: Travelscape ordered to pay South Carolina . . January 21, 2011.