BELLEVUE, Wash. -- Expedia's on a shopping spree.
First, it bought Paris-based online corporate agency Egencia
last week and then announced plans to acquire Hawaii tour reseller
Activity World. The terms of both transactions were not
disclosed.
The acquisition of Egencia enables Expedia Corporate Travel
(ECT), the company's travel-management subsidiary, to establish a
foothold in Europe. Egencia has 500 clients and oversees operations
in France, Belgium and the U.K.
Matt Hulett, ECT's president, said the purchase not only enables
ECT to jump-start its expansion in Europe but also will enable its
multinational clients in the U.S. to implement Expedia's technology
for offices in European countries.
"The acquisition gives us the ability to be the first global
online travel management company," Hulett said -- although American
Express would argue that it already offers online travel management
services in Europe.
There are already clients on ECT's roster that would qualify for
a global travel program. The company said 11 Fortune 500 firms are
customers in the U.S.
Egencia has been renamed Expedia Corporate Travel Europe.
Current Egencia clients will migrate to Expedia's technology
platform, Hulett said.
"Data will be in one place," said Hulett, adding that drawing
information from a single database will help companies achieve what
has been elusive for most multinational firms -- consolidated
global reporting.
ECT's next target is Canada -- a corporate-travel operation in
that country is "in the works," according to Mitch Robinson, ECT's
product manager.
Expedia said Activity World, which is based in Maui and has 80
employees, sells more than 154,000 destination-services packages
annually and operates 24 kiosks in hotels and other locales on
Maui.
At the kiosks, travelers can book activities such as snorkeling
excursions and helicopter tours, Expedia said.
Expedia, referring to its Web sites and the kiosks, said the
acquisition, which it expects to close in April, will make Expedia
"the first online travel company to offer customers the option of
booking in-destination activities online or on location at their
vacation property."
Expedia, which already owns a wholesaler specializing in
packages to Hawaii in Classic Custom Vacations, said the purchase
of Activity World will "significantly expand the destination
services" that Expedia offers in Hawaii.
Expedia's purchase of Activity World also reflects the push
among online travel sellers to enhance their dynamic-packaging
technology by selling destination activities.
Selling tours and in-destination activities is lucrative. Last
month, Orbitz President and CEO Jeff Katz said such product can be
marked up between 25% and 45%.
Dennis Schaal contributed to this report.
To contact reporter Jerry Limone or managing editor of
TravelWeekly.com Dennis Schaal, send e-mail to [email protected]
or [email protected].