Expedia

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Expedia Inc.
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Type of businessSubsidiary
Type of site
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OwnerExpedia Group
General managerTracey Weber[1]
URLexpedia.com
CommercialYes
RegistrationYes
LaunchedOctober 22, 1996; 29 years ago (1996-10-22)
Current statusActive

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Expedia Inc. is an American online travel agency owned by Expedia Group, which is headquartered in Seattle, Washington. When Microsoft Corporation launched Expedia on the Microsoft Network in October 1996, it was the first online travel service to be offered by a major technology company, allowing consumers to make air, car, and hotel reservations online and to browse a library of multimedia travel guides.[2] Expedia was founded on October 22, 1996, inside Microsoft in Redmond, Washington, led by Richard (Rich) Barton and a small team who saw an opportunity to bring transparent airfare, hotel, and car booking directly to consumers without travel agents.[3]

Through its website and mobile app, customers can book airline tickets, hotel reservations, car rentals, cruise ships, activities, and vacation rentals. Once operating solely as Expedia.com, the group gradually acquired a wide range of travel brands, including Vrbo, Hotels.com, and Trivago, becoming the second-largest online travel agency worldwide, just behind Booking Holdings.[4] Expedia is the lead travel app in the US market, with 19.3% market share, and operates over 200 travel websites.[5]

History

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Microsoft launched the first public beta of the Expedia booking engine in October 1996, positioning it as a consumer complement to its MSN portal.[6] After early traffic growth, Microsoft announced plans to float the unit; the initial public offering on 10 November 1999 was priced at US$14 and the shares closed the first day at US$37, valuing the business at more than US$2 billion.[7][8]

In July 2001, Barry Diller’s USA Network (later IAC/InterActiveCorp) agreed to purchase a 75 % stake in Expedia for about US$1.5 billion, marking one of the first large-scale Internet travel acquisitions.[9] IAC took full control in 2003 and subsequently consolidated its various travel holdings. Shareholder pressure to unlock value led IAC to spin off its travel division as a standalone, Nasdaq-listed company, Expedia Inc., on 9 August 2005.[10]

During the late 2000s Expedia broadened its portfolio with brands such as Hotels.com, Hotwire, Vrbo and regional OTAs. In April 2011 the company announced plans to separate its user-generated-content unit TripAdvisor; analysts welcomed the move and Expedia shares rose 11 %.[11]

In February 2020, chairman Barry Diller ordered a cost-cutting programme that eliminated about 3,000 jobs (≈12 % of staff) after characterising the organisation as “bloated and sclerotic.”[12]

Expedia, Hotels.com, and Vrbo share a loyalty program called One Key, which launched in July 2023.[13][14]

In 2025, Expedia was the first online travel agency to partner with Southwest Airlines to start selling tickets on behalf of the airline.[15][16][17]

Delays in refunds of flights cancelled due to COVID-19

In 2020, during the COVID-19 pandemic, customers complained regarding the process to get refunds for cancelled flights. Customers complained of excessively long call times and being unable to get through to a representative.[18] This led to many lawsuits.[19][20]

False advertising and trademark violation

In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC filed a class-action lawsuit in California accusing the company and its partners of violating trademark rights of numerous independent hotel and motel establishments by running advertising implying that consumers could book reservations for those hotels on Expedia even though Expedia had no relationship with those hotels, in violation of the Lanham Act, and also falsely noting that hotels with which the company had no relationship were "sold out".[21] In April 2021, the lawsuit was settled and the company promised not to engage in false advertising.[22]

Listings in Israeli settlements

Expedia, along with other travel companies, such as Booking.com and TripAdvisor, has been criticized by activists and NGOs, such as Amnesty International, for offering holiday apartments in illegal Israeli settlements under international law in the occupied West Bank.[23]

See also

References

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  1. ^ Page Module:Citation/CS1/styles.css has no content.Biesiada, Jamie (August 4, 2025). "Expedia says AI is improving the customer experience and generating revenue". Travel Weekly.
  2. ^ Page Module:Citation/CS1/styles.css has no content."History of Expedia, Inc". FundingUniverse. Retrieved February 25, 2026.
  3. ^ Page Module:Citation/CS1/styles.css has no content."What is Brief History of Expedia Group Company?". Porter's Five Forces. December 10, 2025. Retrieved February 25, 2026.
  4. ^ Page Module:Citation/CS1/styles.css has no content."Topic: Expedia Group, Inc". Statista. Retrieved February 25, 2026.
  5. ^ Page Module:Citation/CS1/styles.css has no content."Expedia Revenue and Usage Statistics (2026)". Business of Apps. Retrieved February 25, 2026.
  6. ^ Page Module:Citation/CS1/styles.css has no content."Connecting to a New Frontier". Los Angeles Times. September 6, 1996. Retrieved August 7, 2025.
  7. ^ Page Module:Citation/CS1/styles.css has no content."Expedia joins IPO bandwagon". Travel Weekly. September 28, 1999. Retrieved August 7, 2025.
  8. ^ Page Module:Citation/CS1/styles.css has no content."Travelocity Bumps Expedia". Forbes. October 4, 1999. Retrieved August 7, 2025.
  9. ^ Page Module:Citation/CS1/styles.css has no content."Diller's USA to Buy 75% of Expedia". Los Angeles Times. July 17, 2001. Retrieved August 7, 2025.
  10. ^ Page Module:Citation/CS1/styles.css has no content."IAC completes spinoff of Expedia travel group". Travel Weekly. August 10, 2005. Retrieved August 7, 2025.
  11. ^ Page Module:Citation/CS1/styles.css has no content.Karen Jacobs (April 8, 2011). "Expedia shares gain on TripAdvisor spin-off plan". Reuters. Retrieved August 7, 2025.
  12. ^ Page Module:Citation/CS1/styles.css has no content.Taylor Soper (February 24, 2020). "Expedia cuts 3,000 jobs, including 500 at new Seattle HQ". GeekWire. Retrieved August 7, 2025.
  13. ^ Page Module:Citation/CS1/styles.css has no content.Vaughn, Harlan (October 20, 2025). "Best Hotel Booking Sites To Find The Cheapest Rates". Forbes. Retrieved December 20, 2025.
  14. ^ Page Module:Citation/CS1/styles.css has no content.Chang, Rachel (July 18, 2023). "You Can Win $60K to Spend on Travel Thanks to Expedia's New Rewards Program — Here's How". Travel + Leisure. Retrieved December 20, 2025.
  15. ^ Page Module:Citation/CS1/styles.css has no content.Cappetta, Michael (February 26, 2025). "Southwest Airlines Announces Big Partnership With Expedia—What to Know". Travel + Leisure.
  16. ^ Page Module:Citation/CS1/styles.css has no content.Silk, Robert (February 26, 2025). "Southwest puts flights on Expedia". Travel Weekly.
  17. ^ Page Module:Citation/CS1/styles.css has no content.Witcher, Zach (February 26, 2025). "You can now book Southwest Airlines flights on Expedia platforms". USA Today.
  18. ^ Page Module:Citation/CS1/styles.css has no content.Ulrich, Todd (February 5, 2021). "Consumers grow frustrated with Expedia over COVID-19 refunds". WFTV.
  19. ^ Page Module:Citation/CS1/styles.css has no content."Traveler sues Expedia for refusing refunds on canceled flights during COVID-19 pandemic". USA Today. September 9, 2020.
  20. ^ Page Module:Citation/CS1/styles.css has no content.RENDA, MATTHEW (August 19, 2016). "Hotels Accuse Expedia, Orbitz of Brazen Deceit". Courthouse News Service.
  21. ^ Page Module:Citation/CS1/styles.css has no content."Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. et al". Justia. August 17, 2016.
  22. ^ Page Module:Citation/CS1/styles.css has no content.IOVINO, NICHOLAS (April 9, 2021). "Expedia Settles False Advertising Class Action With Hotels". Courthouse News Service.
  23. ^ Page Module:Citation/CS1/styles.css has no content."Opinion: TripAdvisor, Booking.com, Expedia – please stop offering holidays in illegal Israeli settlements". The Independent. Archived from the original on March 29, 2026. Retrieved March 29, 2026.

Further reading

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