Posted Under : Travel Networks
- Posted by :Thomas
- Date : May 01, 2015
Expedia Inc. on said it agreed to acquire smaller competitor Orbitz Worldwide in a move that will allow Expedia to overtake Priceline Group as the world’s largest online travel agency (OTA) by gross bookings.Potentially, Expedia Inc. could control well over two-thirds of U.S. purchases on OTAs.
The acquisition will make Expedia the world’s largest OTA by bookings, though Priceline will remain the largest by revenue, as Priceline collected almost 17 cents in revenue per dollar booked through the first three quarters of last year. In comparison, Expedia and Orbitz collected about 11 cents and 7 cents in revenue per dollar booked, respectively. With Orbitz and Travelocity under the Expedia Inc. umbrella, Expedia may end up controlling more than two-thirds of U.S. bookings through OTAs.