Expedia

Expedia Inc.
Company type	Public
Industry	Online travel agency
Founded	October 22, 1996; 30 years ago
Founder	Microsoft
Headquarters	Seattle, United States
Area served	Worldwide
Key people	Barry Diller (chairman)
Products	Airline tickets, hotel reservations, car rentals, cruise bookings, vacation packages
Number of employees	Approximately 22,000 (estimated from 3,000 cut being 12%)
Parent	Expedia Group
Website	www.expedia.com

Expedia Inc. operates as a digital travel agency under the ownership of Expedia Group, with its main offices situated in Seattle. Through its website and mobile app, the company facilitates reservations for airline tickets, hotel accommodations, car rental services, cruise ship bookings, and vacation bundles. The Expedia.com platform was initially launched by Microsoft on October 22, 1996.

1996–1999: Origins at Microsoft and Public Offering

The first public beta version of Expedia’s booking system was introduced by Microsoft in October 1996 as part of the consumer offerings on its MSN portal.

After a rapid increase in user adoption, Microsoft decided to separate Expedia as an independent entity. The company went public on November 10, 1999, with an IPO priced at US$14 per share, closing the debut day at US$37 per share and valuing the business at over US$2 billion.

2001–2005: USA Networks/IAC Acquisition and Spin-Off

In July 2001, Barry Diller’s USA Network (which later became IAC/InterActiveCorp) purchased a 75% ownership stake in Expedia for approximately US$1.5 billion, representing a significant acquisition in the online travel sector.

By 2003, IAC had acquired full ownership and merged its travel-related assets. Due to pressure from shareholders seeking to maximize value, IAC separated its travel division into an independent company, Nasdaq-listed Expedia Inc., on August 9, 2005.

2005–2019: Growth and Separation of TripAdvisor

Throughout the late 2000s, Expedia broadened its brand portfolio by acquiring Hotels.com, Hotwire, Vrbo, along with multiple regional online travel agencies. In April 2011, Expedia declared intentions to spin off its user-generated content platform, TripAdvisor; this decision was favorably received by market analysts and led to an 11% rise in Expedia’s stock price.

2020–present: Organizational Restructuring, AI Adoption, and Leadership Changes

In February 2020, chairman Barry Diller launched a substantial cost reduction initiative that resulted in cutting around 3,000 positions (approximately 12% of the workforce), describing the company structure as “bloated and sclerotic.”

Sponsorships

Between 2018 and 2021, Expedia Group became the inaugural global partner of both the UEFA Champions League and UEFA Super Cup. This sponsorship agreement was extended through 2024 but shifted focus towards the U.S. market starting with the 2022–23 season after Hotels.com concluded its sponsorship following the 2021–22 season.

Starting with the pandemic-impacted 2020-21 campaign, Expedia secured a three-year global sponsorship arrangement with Liverpool F.C., reigning champions of the English Premier League in 2020, continuing through to 2023.

In July 2021, Expedia took on the role of shirt back sponsor for Wrexham A.F.C. for a two-year period.

Refund Delays for COVID-19 Flight Cancellations

During the COVID-19 pandemic in 2020, numerous customers experienced significant delays and difficulties contacting support representatives to obtain refunds for flights that were cancelled. These complications led to several lawsuits filed against the company.

Allegations of False Advertising and Trademark Infringement

In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC initiated a class-action lawsuit in California, accusing Expedia of infringing trademark rights by promoting hotel bookings for establishments with which it had no official partnerships. The plaintiffs also alleged misleading consumers by falsely suggesting some hotels were "sold out." The dispute was resolved in April 2021 when Expedia agreed to discontinue such deceptive advertising practices.

External links

Official website