Expedia launches booking site in Japan

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Expedia Inc. launched a hotel booking site for consumers in Japan, targeting the outbound market.

The new Expedia Japan Web site, at www.expedia.co.jp, offers inventory from 30,000 properties around the world and is supported by Japanese-language telephone and e-mail customer service.

Site features include professional reviews, traveler ratings, Expedia star ratings and virtual tours of hotel rooms and facilities.

Expedia is entering a market that is driven by package tour operators, where online bookings of air travel lag behind consumers' penchant for booking hotels online. Another challenge is credit card penetration: About 20% of online leisure-travel bookers in Japan do not own a credit or debit card, according to Forrester Research.

As it did in Australia, Expedia said it is launching the Japanese site as a hotel booking site and will add air bookings and dynamic packages "in the future."

Expedia Japan is the first wholly owned venture by a U.S. online travel company in Japan and is a prime component of Expedia's expansion strategy in the Asia-Pacific region.

Forrester's principal analyst of travel research, Henry Harteveldt, said "it appears they've taken steps to make their Japanese site culturally relevant. And it's no surprise they're starting with hotels. That's one of Expedia's product strengths and a product that is also more lucrative financially for them than air."

In a separate expansion move, Expedia Corporate Travel planned to close last week on the acquisition of MTM Reisen, a corporate travel agency in Munich.

MTM Reisen, which books about $14 million in travel annually and has a meetings and incentives business, would supplement ECT's Belgium, France and U.K. operations in Europe. Terms of the agreement were not disclosed.

To contact reporter Dennis Schaal, send e-mail to [email protected].

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