Online Travel Consolidation: Expedia Buys Travelocity for $280M

Bellevue, WA-based Expedia (NASDAQ: EXPE) has purchased Travelocity as consolidation continues in the online travel industry.

Expedia paid Sabre Corporation (NASDAQ: SABR) $280 million for Travelocity, formed in 1996. In 2013, Expedia competitor (NASDAQ: PCLN) acquired Kayak (NASDAQ: KYAK) for $522.4 million in cash and 1.5 million shares of stock.

Since 2013, Expedia technology has underpinned Travelocity’s website, and Travelocity has had access to Expedia’s supply of hotel rooms, flights, and other travel products, and its customer service.

At the time of that marketing agreement, the companies said Travelocity would focus on promoting its brand and marketing travel services powered by Expedia.

“The strategic marketing agreement we’ve had in place has been a marriage of Travelocity’s strong brand with our best-in-class booking platform, supply base, and customer service,” said Expedia CEO Dara Khosrowshahi in a news release. “Evolving this relationship strengthens the Expedia Inc. family’s ability to continue to innovate and deliver the very best travel experiences to the widest set of travelers, all over the world.”

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