Expedia 2013 Annual Report Download - page 10

cruises and many destination services — such as airport transfers, local attractions and tours — from a large
number of suppliers, on both a stand-alone and package basis. In the Asia Pacific region, under a joint venture
which was launched on July 1, 2011, Brand Expedia partners with low-cost airline AirAsiaTM allowing Expedia
sites to be the only official third party online distribution channel for AirAsia content. We hold a 50% ownership
interest in the joint venture, which is accounted for under the equity method. The results of the Expedia-branded
websites contributed to the joint venture are not consolidated within Expedia’s results of operations as of the
joint venture’s launch. AirAsia owns the remaining 50% interest and contributed its AirAsiaGo and GoRooms
businesses. As part of an exclusive, long-term strategic marketing agreement with Travelocity signed during the
third quarter of 2013, Brand Expedia will power the technology platforms for Travelocity’s existing websites in
the United States and Canada, while providing Travelocity access to Expedia, Inc. supply and customer services.
During the fourth quarter of 2013, Brand Expedia launched hotel and air products on the Travelocity-branded
websites for the United States and expects to complete the majority of the migration of the remaining products
and the Canada website during the first half of 2014.
Hotels.com Worldwide. Hotels.com is focused entirely on marketing and distributing hotel rooms.
Hotels.com, with more than 85 localized sites worldwide and market leading mobile apps on all major platforms,
offers travelers a broad selection of hotel properties. Because of its single product offering, Hotels.com is often
our first entry point into a region allowing us to evaluate the market opportunity prior to adding additional brands
and product offerings. Welcome Rewards®, the Hotels.com loyalty program, established in 2008, offers travelers
the ability to earn one free night for every ten nights stayed.
The Hotwire Group. Hotwire offers a travel booking service that matches flexible, price-sensitive travelers
with suppliers who have excess seats, rooms and cars they offer at lower rates than retail. Many of these deals are
presented “opaquely” where the brand of the travel supplier is not revealed until after the customer books.
Hotwire travelers may enjoy significant discounts by electing to book travel services without knowing certain
itinerary details such as brand and exact hotel location, while suppliers create value from excess availability
without diluting their core brand-loyal traveler base. Through its U.S. and international sites, Hotwire partners
with leading hotel companies worldwide, brand-name domestic and international airlines, and major car rental
companies in the United States. Hotwire also operates CarRentals.com™, an online car rental marketing and
retail firm offering a diverse selection of car rentals direct to consumers.
Expedia Affiliate Network. Our private label and co-brand programs make travel products and services
available to travelers through third-party company-branded websites, including some of the leading regional
online travel companies. The products and services made available through EAN are substantially similar to
those made available on Expedia-branded and Hotels.com-branded websites. We generally compensate
participants in co-branded and private label programs on a revenue or gross profit-share basis. We also leverage
private label platforms to make Expedia and Hotels.com-branded sites available in certain international points of
sale.
Egencia. Our full-service travel management company offers travel products and services available to
corporations and corporate travelers. Egencia maintains a global presence in more than 60 countries across North
America, Europe and Asia Pacific. Egencia provides, among other things, centralized booking tools for
employees of its corporate customers, unique supply targeted at business travelers, and consolidated reporting for
global, large and “SME” (small and medium size enterprise) business segments. Egencia charges its corporate
clients account management fees, as well as transactional fees for making or changing bookings. In addition,
Egencia provides on-site agents to some corporate clients to more fully support the account. Egencia also offers
consulting and meeting management services. We believe the corporate travel sector represents a significant
opportunity for Expedia through Egencia’s compelling technology solution for businesses seeking to optimize
travel costs and improve employees’ travel experiences by moving the focus of the corporate travel program
online versus the traditional call center approach. We intend to continue investing in and expanding the
geographic footprint and technology infrastructure of Egencia as evidenced by the acquisitions of VIA Travel, a
travel management company in the Nordics, during 2012 as well as Travelforce®and Traveldoo™ during 2011.
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