Expedia Inc. has purchased online travel agency Travelocity from technology company, Sabre, for US$280 million in cash.
Expedia and Sabre announced in a joint statement that the acquisition follows a 2013 marketing agreement between Expedia, Inc. and Travelocity under which Expedia powered the technology platforms for Travelocity’s US and Canadian websites, by providing Travelocity access to Expedia’s supply and customer service programme.
Dara Khosrowshahi: Acquisiton strengthern’s Expedia Inc.’s ability to deliver the best travel experiences to more travellers worldwide.
Dara Khosrowshahi, president and chief executive officer of Expedia Inc said in a joint statement: “Travelocity is one of the most recognized travel brands in North America, offering thousands of travel destinations to more than 20 million travellers 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 travellers, all over the world.”
Added Tom Klein, Sabre CEO and president: “Our primary focus at Sabre is to provide mission-critical software solutions to our global airline, hospitality, and travel agency customers – and to help them support their customers every day.
“We have had a long and fruitful partnership with Expedia, most recently by partnering to strengthen the Travelocity business, so our decision to divest Travelocity is a logical next step for us both.”
Expedia Inc will retain the Travelocity brand, and it will be part Expedia Inc”s family alongside online travel brands that include Expedia, trivago, Hotwire, Egencia, and Venere.com.
