Orbitz
| Company type | Division |
|---|---|
| Industry | Travel, Online travel agency |
| Founded | June 2001 |
| Fate | Acquired by Expedia Group |
| Headquarters | Chicago , United States |
Area served | Global |
| Products | Travel fare aggregator, Metasearch engine |
| Owner | Expedia Group |
| Parent | Expedia Group |
| Website | orbitz |
Orbitz.com functions as a global travel fare aggregator and metasearch platform, operating under Orbitz Worldwide, Inc., which is a division of the Expedia Group. The company’s main office is situated in the Citigroup Center located in Chicago, Illinois.
Background
The beta version of Orbitz.com was introduced in early 2001, with the official public launch occurring in June of the same year.
Antitrust concerns
Upon its introduction and continuing for two years, Orbitz encountered scrutiny regarding antitrust matters because its founding entities controlled approximately 75% of the U.S. airline market. Nevertheless, investigations by the United States Department of Transportation revealed no violations, and in 2003, the United States Department of Justice concluded that Orbitz did not operate as a cartel nor engage in price-fixing activities. According to Nielsen’s NetRatings, the June 2001 debut represented the most significant e-commerce launch at that time.
Ownership history
In November 2003, Orbitz submitted paperwork for an initial public offering, going public on December 18, 2003, with an initial share price set at $26. After this offering, airlines maintained ownership of 70% of shares and controlled over 90% of voting rights.
On September 29, 2004, Cendant Corporation purchased Orbitz for $1.25 billion, paying $27.50 per share.
In 2006, The Blackstone Group acquired Travelport—the travel distribution segment of Cendant that included Orbitz—for $4.3 billion. Travelport encompassed Orbitz’s consumer-facing website, the Galileo reservation system, and multiple other travel-related software brands.
To alleviate debt burdens, Travelport filed for an IPO for Orbitz Worldwide in May 2007; trading commenced on July 20, 2007. After the IPO, Travelport retained roughly 48% ownership.
In February 2015, Expedia revealed plans to acquire Orbitz for $1.6 billion to enhance its competitive stance against Priceline.com, shortly after completing its purchase of Travelocity.
Technologies
Orbitz’s infrastructure operated on a hybrid platform combining Red Hat Linux and Solaris. The company was an early implementer of Sun Microsystems’ Jini technology within a clustered Java environment. Their technology stack included JBoss application servers along with a mix of proprietary and open-source software components. The site was powered by ITA Software’s Lisp-based QPX system under license. Orbitz Worldwide unified its brands onto a shared technology framework that supported multiple languages and currencies across various markets. Additionally, segments of their Complex event processing system were made available as open-source contributions.
Southwest Airlines
In May 2001, Southwest Airlines initiated legal action against Orbitz alleging trademark infringement and false advertising. The claims centered on misleading pricing information and unauthorized use of Southwest’s trademarks. By July, Southwest removed its fares from Orbitz’s distribution channels and dropped the lawsuit while restricting ticket sales exclusively to its own platforms. In June 2008, Orbitz For Business became one of the first online travel agencies to reintegrate Southwest Airlines flights into its offerings.
WebLoyalty
In July 2009, CNET reported that Orbitz along with other consumer websites such as Buy.com and Fandango permitted third-party marketers to access customers’ credit card details following transactions. The Senate Commerce Committee characterized these marketing services as deceptive schemes involving recurring charges through third-party programs like Reservation Rewards or Webloyalty. Orbitz’s Terms of Service allowed sharing customer credit card information with external parties for their independent use.
Milgram v. Orbitz
In 2009, the state of New Jersey initiated legal action against the company, accusing it of offering tickets for a Bruce Springsteen concert that did not exist on its platform. The court sided with Orbitz, referencing Section 230 of the Communications Decency Act, which barred the state's consumer fraud allegations.
American Airlines
In December 2010, American Airlines ceased distributing fares through Orbitz temporarily, advocating for the implementation of its AA Direct Connect system to better manage product distribution, lower Global Distribution System (GDS) fees, and facilitate sales of ancillary services. Subsequently, an Illinois court mandated that American resume sharing fares and schedules on Orbitz. This legal intervention followed American’s public campaign against Orbitz, which included a critical video posted on YouTube.
Media Matters' "War on Fox"
Media Matters initiated DropFox.com to promote an advertising boycott against Fox News. While initially labeling this effort as a "smear campaign," Orbitz reversed its stance in June 2011 under pressure from LGBT advocacy groups and agreed to reassess its advertising policies and the criteria for ad placements.
Skiplagged lawsuit
In 2014, Orbitz and United Airlines brought a federal lawsuit against Aktarer Zaman, the 22-year-old founder of Skiplagged. The suit accused Zaman of deliberately and maliciously disrupting airline business relationships by encouraging travel methods prohibited under common carrier agreements. The case centered on airline restrictions related to hidden city ticketing. Although this booking technique is not unlawful, airlines argued that Zaman’s website interfered with their operations. Ultimately, the lawsuit was dismissed.