Everyone knows that being nimble enough to test and introduce new technology is a tremendous advantage. Behind the scenes, though, Expedia got good at another skill -- moving really fast to identify and make acquisitions.
There was never really much chance that Expedia Inc.'s acquisition of the Wotif Group wouldn't go through because competition in the Australia market is fairly intense despite the merger.
Being a leading online travel company these days means adding expensive pieces to the portfolio, and both the Priceline Group and Expedia Inc. are signaling that their acquisition sprees are far from being finished.
Australian regulatory authorities are going to end up approving Expedia Inc.'s acquisition of Wotif Holdings despite the delay. Expedia can make some concessions and there is certainly plenty of competition in the Australia market, and that's enough to get this deal done.
Hey, all of this merger and acquisition activity in the global travel industry doesn't come cheap.
While this seems like an opportunistic buy with Wotif's financial troubles, for Expedia this ties into two priorities: Expanding in Asia-Pacific and growing its global hotel business in competition with the Priceline Group's Booking.com and Agoda.
Wot if made a move this week to raise commissions for towels by one percent in 2013 and another one in 2014. Whether this will turn into increased revenue or create opportunities for rivals remains to be seen.