Hotwire.com

Hotwire
	File:Hotwire Logo.svg
Company type	Subsidiary
Founded	2000; 26 years ago
Founders	Karl Peterson; Eric Grosse; Gregg Brockway; Spencer Rascoff; American Airlines; Northwest Airlines; Continental Airlines; America West Airlines; United Airlines
Headquarters	San Francisco, California, United States
Products	Airline travel; Car rental services; Hotel reservation; Vacation packages
Revenue	US$ 35 million (2018)
Number of employees	300+
Parent	Expedia Group
Website	www.hotwire.com

Hotwire operates as an online platform specializing in discounted travel bookings, including airline tickets, hotel accommodations, car rentals, and vacation bundles by offering unsold inventory at reduced prices. Based in San Francisco, it functions under the umbrella of the Expedia Group, alongside other brands such as ClassicVacations, Expedia, Hotels.com, Orbitz, Travelocity, and Egencia.

History

Established in 2000 by entrepreneurs Karl Peterson, Eric Grosse, Gregg Brockway, and Spencer Rascoff, Hotwire was initially financed with $75 million from founding partner Texas Pacific Group (TPG), a private equity firm associated with Peterson. The launch featured ticket sales from six prominent airlines—American, Northwest (currently Delta), Continental (now United), America West (merged into American), United, and US Airways (also merged into American)—all of which contributed investment toward Hotwire’s inception. Prior to its public debut, the project was internally known as Purple Demon.

In September 2003, IAC/InterActiveCorp, which had acquired Expedia in 2001, purchased Hotwire for $663 million. By 2004, collaborative advertising efforts between Hotwire and Expedia increased their combined unique monthly visitors by 1.5 million.

Initially focusing on opaque airline ticket sales, Hotwire expanded to include opaque hotel and rental car bookings shortly thereafter. Vacation packages were introduced in 2003, followed by select retail travel products in 2004. To boost competitiveness, the company removed airfare booking fees in June 2007.

Leadership

Karl Peterson, one of the original founders, served as Hotwire’s inaugural CEO. Eric Grosse held the roles of Founder and CFO from 2004 to 2006 before advancing to President of Expedia Worldwide in 2009. Clem Bason assumed leadership until 2013, after which Henrik Kjellberg—previously President of Expedia Affiliate Network—became President.

The management team at Hotwire comprises one General Manager alongside six Vice Presidents. The workforce expanded swiftly from an initial four employees to more than 300.

Customer and revenue structure

By 2019, Hotwire attracted over 9.5 million unique monthly visitors and generated approximately 91 million pageviews. The primary demographic consisted of adults aged between 25 and 54 years (60%), with a slight predominance of male users (52%). Revenue estimates stood near US$35 million. As a subsidiary within Expedia Group, Hotwire’s financial results are consolidated and not disclosed separately.

Products

Hotwire’s portfolio centers on airline tickets, car rentals, hotel bookings, and vacation packages—all designed to cater efficiently to online consumers.

Operations

Hotwire utilizes an "opaque" sales approach to distribute unsold hotel accommodations, airline tickets, and rental vehicles from well-known travel brands, keeping the suppliers' identities hidden until after the transaction is completed. This method enables partners to offload surplus inventory without impacting standard retail pricing. Customers are informed of prices and travel dates in advance; Hotwire does not employ bidding or auction mechanisms. Additionally, the company offers open travel APIs to facilitate integration with various travel software applications.

Awards

Hotwire received recognition from J.D. Power and Associates in 2007 for achieving the "Highest Customer Satisfaction among Independent Travel Websites" for the second year running. In 2014, it was honored with Travel Weekly's Silver Magellan Award for excellence in its mobile application.

External links