By Keith Regan E-Commerce Times
07/10/01 6:54 PM PT
Highlighting how complex the online travel world has become,
some airlines that co-own Expedia partner Worldspan are also
backers of Expedia's rival Orbitz.
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Travel site Expedia.com
(Nasdaq: EXPE) said Tuesday
it has struck a deal to have its Internet search
technology licensed to more than 20,000
online and offline travel agents around the world.
The initiative, known as ePricing, stems from Expedia's long-standing partnership with
Worldspan, an airline-backed reservation system used by travel agents. Expedia and
Worldspan have been partners since 1995.
The move also creates another battlefield in the
ongoing war for travel-related e-commerce
dollars. One of Expedia's main online competitors,
Travelocity (Nasdaq: TVLY), is already
tied into thousands of travel agents through its
majority owner, Sabre (NYSE: TSG).
In February, Sabre rolled out
an initiative, known as the eVoya Webtop,
that is similar to the one announced by Expedia.
Analysts have said that as consumers turn to the Internet for
travel information and lower fares, traditional travel
agencies must adapt to Web technology in order to survive.
More Choices
Bellevue, Washington-based Expedia and Worldspan said their system, which
uses Expedia's server-based search technology, will provide
agents with "hundreds of itinerary choices" and
a broad range of price and schedule options.
Expedia said that ePricing will be based on the
technology that drives the "Build Your Own
Trip" feature on its Web site. Slated for
launch later this year, ePricing will be aimed at
private and corporate travel agencies of all sizes,
as well as other online travel sites.
"Expedia has proven the fare-searching capabilities,
massive scalability and robustness
of its technology," said Paul Blackney, president and
chief executive officer of Atlanta,
Georgia-based Worldspan.
Tangled Web
The Worldspan reservation system is owned by
several major airlines, including Delta and
Northwest. Highlighting just how crowded and
intermingled the online travel world has
become, those airlines are also among the main backers of
Orbitz, the mega-travel site
that some analysts say poses a competitive threat to Expedia and others.
Expedia, meanwhile, is facing a blend of good and bad news on other fronts.
The company reported its first operating profits in
May of this year -- just weeks after Travelocity booked
its first earnings. And Expedia remains on target post profits again next month.
However, Expedia is also facing a spate of lawsuits
from investors who allege the company's initial public offering, which took
place in 1999, violated federal securities laws.
Expedia Faces Multiple Shareholder Lawsuits July 06, 2001
The latest shareholder lawsuit against Expedia
joins at least four related cases pending against
the company in the federal court in Manhattan.
European Airlines Join Forces in Mega-Travel Web Site June 27, 2001
Opodo's entry into the online travel market comes at a critical time for the
sector, with several recent studies forecasting strong European growth.
Airlines Offer Internet Discounts June 26, 2001
Having customers book their own travel tickets on the Internet will cut
down on calling center costs and errors, an analyst said.
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Headline Feeds
to have its Internet search
technology licensed to more than 20,000
online and offline travel agents around the world.
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