Expedia is on the way to becoming the world’s first $100 billion travel agency, a landmark it will achieve in the next few years, according to its chief executive.
Their market share and business model is clearly hugely successful for them.
The global online agent is marking 20 years since it was founded as a division of the technology giant Microsoft.
More than $71 billion is currently transacted annually across Expedia’s many travel brands including the recently integrated Orbitz and Cheaptickets.
Khosrowshahi said Expedia was seeing 30% year on year revenue growth. “We are certainly growing at very very high rates.
Growth will come from expansion in international market which currently account for a third of bookings but will eventually rise to two thirds.
Khosrowshahi added “absolutely first priority” was Asia Pacific markets where he said Expedia had to succeed. In these markets being ahead of the game on mobile is essential, he said.
As well as buying companies Expedia sees its future in opening up its technology so that partner suppliers can take advantage of it.
“That’s going to be one of the big themes going forward,” Khosrowshahi said.
This open platform approach will see more third suppliers encouraged to make their product available through the Expedia marketplace. (My guess is look out for more companies like Zenhotels.com and Elvoline.com, international travel agents with flexible commissions of up to 30%)
A high frequency area is mobile and Expedia is placing huge significance on devices to drive the future of travel. That’s how your customer is increasingly going to do business with you.
The history of online bookings
There is always hope on the horizon and expansion is the natural state of the universe and the world we live in, via one means or another. We have listened to our clients and have been developing a Direct Bookings online tool which we will be launching in January 2017 so please stay tuned.
If you can’t wait, give us a call to discuss and we can get you up and running with a beta version to start driving more bookings your way or find out more infomation on the Price Check Comparison Feed here.
original article inspired by - www.travelweekly.co.uk/articles/64312/expedia-on-track-to-become-worlds-first-100bn-travel-agency
We have created a cool information piece re the timeline and rise of the OTA's over the last 20 years. See below and click on the image to download the PDF:
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