Saber and competitors Cendant and Expedia, owned by Barry Diller's IAC / InterActiveCorp, are making the online tourism industry as more and more people buy airline tickets and hotel rooms online. A third of bookings may be made online by 2009 compared to 23 percent in 2004, according to JupiterMedia Corp. projections. (Bloomberg.com)
Expedia is one of the most popular brands in the online travel market. Expedia is the 245th most popular website in the world, Expedia.co.uk is the 1981th most popular website in the world – while Expedia.ca is 4361 most popular. (Alexa.com – September 2006)
By offering services such as tracking fare and comparing fare, Expedia encourages its customers to focus on cost and at least provide the perception that they are getting the best deal.
Expedia was founded in 1994 as a Microsoft division, and Expedia was launched in 1999 and purchased by IAC / InterActiveCorp in 2001. The brand itself has not changed much since 2000, which is unusual for a company driven by websites. This confirms that Expedia focuses on efficiency rather than image.
Efficient, Reasonable, Knowledgeable Website and Cool Appearance, Expedia focuses on providing the best online travel deals.
Expedia coupon of $ 50 for all-inclusive reservations and its last focus on all-inclusive holidays – is the hidden inter-agency fear online consumers are shopping for. (USAToday.com)
Focusing on the all-around travel package, Expedia decided to use this method to try to make sure customers stay with them. Declining airline ticket margins encouraged them to focus on the "package".
Expedia's strengths include its operating record under the Microsoft Network. This not only enabled Expedia to maximize its technology expertise, but also gave it the opportunity to benefit from being part of one of the most reliable brands in the world. Although efficient in style, since Expedia has not undergone any reinvention of images since 2000, it can be said that it allowed Travelocity to bypass it in terms of being visually appealing.
Yet the fact remains that Expedia has now ranked first in the online travel market for several years? Will this change in the near future? It does not seem very likely.
Basic Expedia competencies
Expedia's core competence is the outstanding understanding of technology in the online travel market. This enabled them to gain the advantage of the first movement in this sector by forming appropriate strategic alliances.
Competitive advantage from Expedia
Expedia decided to go a dangerous way by choosing the cost advantage as its competitive advantage. They choose to do this because they know they already have the most popular online travel portal. The time will clarify whether other companies such as Travelocity will be able to ensure that online travel customers are willing to spend more to receive a perceived service, facility or brand value.
However, in addition, Expedia has an extensive marketing portfolio of partners. Through CJ.com (Commission Junction) Expedia constantly offers other websites the opportunity to market their services for a percentage of the final reservation fee. (Usually around 5%) compared to its closest competitor, Travelocity, Expedia was more aggressive with their affiliate marketing use.
The fact remains, however, that Expedia has now ranked first in the online travel market for several years? Will this change in the near future? It does not seem very likely.