Expedia Still Bullish on Orbitz Despite Missteps
Skift Take
In the long-run, Expedia will have gained by acquiring Orbitz because of its brand recognition, effective loyalty program, and list of corporate deals. CEO Dara Khosrowshahi is especially optimistic about taking Orbitz's private label functionality and bringing it to the flagship Expedia brand later this year.
Financial data released Thursday cast a light on how Expedia, Inc., has suffered from indigestion after it gobbled up Orbitz, which had been the fourth-largest online travel brand in the U.S.
When Expedia made its bid for Orbitz in early 2015, Orbitz had seen its revenues rise 8 percent in the prior year, to reach $900 million. In comparison, Orbitz only booked $764 million in revenue in 2016, representing a decline of 15 percent. Orbitz also saw a year-over-year decrease in gross bookings.
Orbitz also saw a year-over-year decrease in gross book
