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Expedia, Inc.
Form 10-K
For the Year Ended December 31, 2008
Part I. Item 1. Business
Forward-Looking Statements
This Annual Report on Form 10-K contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the views of our
management regarding current expectations and projections about future events and are based on currently
available information. Actual results could differ materially from those contained in these forward-looking
statements for a variety of reasons, including, but not limited to, those discussed in the section entitled “Risk
Factors” as well as those discussed elsewhere in this report. Other unknown or unpredictable factors also could
have a material adverse effect on our business, financial condition and results of operations. Accordingly,
readers should not place undue reliance on these forward-looking statements. The use of words such as
“anticipates,” “estimates,” “expects,” “intends,” “plans” and “believes,” among others, generally identify
forward-looking statements; however, these words are not the exclusive means of identifying such statements.
In addition, any statements that refer to expectations, projections or other characterizations of future events or
circumstances are forward-looking statements. These forward-looking statements are inherently subject to
uncertainties, risks and changes in circumstances that are difficult to predict. We are not under any obligation
and do not intend to publicly update or review any of these forward-looking statements, whether as a result of
new information, future events or otherwise, even if experience or future events make it clear that any
expected results expressed or implied by those forward-looking statements will not be realized. Please
carefully review and consider the various disclosures made in this report and in our other reports filed with the
Securities and Exchange Commission (“SEC”) that attempt to advise interested parties of the risks and factors
that may affect our business, prospects and results of operations.
Management Overview
General Description of our Business
Expedia, Inc. is an online travel company, empowering business and leisure travelers with the tools and
information they need to efficiently research, plan, book and experience travel. We have created a global travel
marketplace used by a broad range of leisure and corporate travelers, offline retail travel agents and travel
service providers. We make available, on a stand-alone and package basis, travel products and services
provided by numerous airlines, lodging properties, car rental companies, destination service providers, cruise
lines and other travel product and service companies. We also offer travel and non-travel advertisers access to
a potential source of incremental traffic and transactions through our various media and advertising offerings
on both the TripAdvisor»Media Network and on our transaction-based websites.
Our portfolio of brands, which is described below, includes: Expedia.com», hotels.com», Hotwire.com»,
the TripAdvisor Media Network, our private label programs (Worldwide Travel Exchange and Interactive
Affiliate Network), Classic Vacations», Expedia Local Expert
TM
, Egencia
TM
(formerly Expedia»Corporate
Travel), eLong
TM
, Inc. (“eLong”) and Venere
TM
Net SpA (“Venere”). In addition, many of these brands have
related international points of sale. We refer to Expedia, Inc. and its subsidiaries collectively as “Expedia,” the
“Company,” “us,” “we” and “our” in this Annual Report on Form 10-K.
Summary of the Spin-Off from IAC/InterActiveCorp
On December 21, 2004, IAC/InterActiveCorp (“IAC”) announced its plan to separate into two indepen-
dent public companies. We refer to this transaction as the “Spin-Off.” A new company, Expedia, Inc., was
incorporated under Delaware law in April 2005, to hold substantially all of IAC’s travel and travel-related
businesses. On August 9, 2005, the Spin-Off was completed and Expedia, Inc. shares began trading on The
Nasdaq Global Select Market (“NASDAQ”) under the symbol “EXPE.”
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