Articles tagged “orbitz”

Six years after uniting the Orbitz, Travelocity and Expedia brands within Expedia Group, the company is now undertaking the grand experiment to differentiate their value propositions and target markets. If it doesn't work, brand consultants never get tired of offering their advice.

Running an airline isn't easy, and neither is launching ridesharing, financial services, and delivery businesses from scratch. AirAsia has its work cut out for it in terms of the required investments and trying to be everything to everyone in Southeast Asian markets with entrenched incumbents.

Facing intense competition and a company in disarray, the Expedia Group board and senior executive Barry Diller have no time to dillydally. No one can forecast what the online travel market will look like in the next five years, but Diller et al need to find a couple of top executives who can quickly figure out Expedia's path forward.

Buying a compelling travel domain like Trip.com and thinking it ensures success is like the people who buy a restaurant and think they can run it because they are foodies. Several major travel companies squandered the Trip.com domain because it was a side hustle. Moral of the story? A brand is only as good as the real-world business behind it.

If you (re)build it, they will come. That's the motto of Expedia Group CEO Mark Okerstrom for 2018.

We can't blame Khosrowshahi for seizing a nearly once-in-a-lifetime challenge to right the trajectory of a unicorn, Uber, but this is also a very awkward time to leave Expedia. Now there will be two big-time CEOs under the gun: Priceline's new top guy, Glenn Fogel, and Khosrowshahi's successor at Expedia.

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.

Ctrip, when acquiring Skyscanner, should call up, or at least compare notes with, companies as varied as Sabre, Travelocity, the Priceline Group, and Expedia when mulling the challenges in integrating a new prized possession. These new playthings can in rare cases turn into the success of a Booking.com, but on the other hand they have the potential to wreak havoc.

Critics of Expedia Inc.'s 2014-2015 acquisition spree appear to have had a valid point: These sorts of mergers and integrations can be very distracting and complex. Expedia has felt the pain now in the second and third quarters and could be in for some more until it get can get things back on course. Expedia's competitors will take advantage.

Moral of the story about the early years of online travel? Not to over-simplify, but be prepared to take risks, feel free to contradict conventional wisdom, and assemble the best damn team that you can.