Travelocity talked years ago about getting into the advertising and media business in a big way, but never made it happen. But, now Expedia has grand plans to use Travelocity's North America sites as a platform to expanding Expedia's own advertising and media business in tandem with the jolt that Trivago is already providing.
Lastminute.com will remain the last man standing of what was once Travelocity -- but only until Sabre can find a buyer in a fire sale because keeping it makes no sense at this juncture.
Was the Expedia-Travelocity deal just a harbinger of things to come? Expedia thinks so and is looking for additional online travel agency partners who would consider outsourcing the hard stuff to Expedia.
Want to gauge Expedia's priorities? It implemented its hotel partnership with Travelocity in a hurry in December. But when it comes to rolling out HomeAway's vacation rentals, Expedia says it will get around to deciding how to proceed in the second half of 2014.
By bringing in former Continental chairman and CEO Larry Kellner as Sabre chairman, and installing Tom Klein as the new CEO, Sabre is signaling that it is readying a strategic move, possibly an IPO, in the near future. The Travelocity deal with Expedia, Travelocity divestments of zuji and Travelocity Business, and these layoffs may all be pieces of the puzzle.