Digital Booking Sites

Travelocity Fires More Employees As Prelude To Expedia Deal

@denschaal

Dec 18, 2013 3:00 am

Skift Take

The Travelocity-Expedia deal is widely seen as a way for Travelocity’s parent, Sabre Holdings, to trim expenses before a possible IPO in 2014.

— Dennis Schaal

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With Travelocity slated to outsource its supplier relationships and the operation of its North America websites to Expedia in 2014, Travelocity continues to trim the ranks of its employees.

The deal was announced in mid-August, and from mid-September 2013 to mid-January 2014, Travelocity will have laid off more than 90 employees, according to several published reports.

About 62 employees were cut from a Travelocity facility in San Antonio, and another 30 or so will have been laid off from its headquarter offices in Southlake, Texas.

The precise date that Expedia and Travelocity will implement the new relationship has not been announced.

When it happens, though, Travelocity in North America will essentially become a marketing organization, and will have to share revenue with Expedia when transactions take place on Travelocity-branded websites in the U.S. and Canada. Travelocity’s LastMinute.com in Europe is not part of the Expedia deal.

“The changes to our organization align with our move to become a marketing-led travel company,” Travelocity said of the downsizing. “None of these changes affect the great service our customers have come to expect from our brand. We will continue to focus on our core strengths in marketing, customer relationships and retailing.”

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