Expedia

History

Main article: Expedia Group#History

Microsoft launched the first public beta of the Expedia booking engine in October 1996, positioning it as a consumer complement to its MSN portal. 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.

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. 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.

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 %.

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.”

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

In 2025, Expedia was the first online travel agency to partner with Southwest Airlines to start selling tickets on behalf of the airline.{{Cite news|url=https://www.travelweekly.com/Travel-News/Airline-News/Southwest-puts-inventory-on-Expedia|title=Southwest puts flights on Expedia|first=Robert|last=Silk|date= February 26, 2025|work=Travel Weekly}}

Criticism and legal issues

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. This led to many lawsuits.

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". In April 2021, the lawsuit was settled and the company promised not to engage in false advertising.

References

References

1. (October 8, 2019). "Look inside the new Expedia HQ in Seattle and company's commuting policy". KING-TV.
2. (October 22, 1996). "Microsoft Expedia Travel Services Debuts on the Web". [[Microsoft]].
3. (6 September 1996). "Connecting to a New Frontier". Los Angeles Times.
4. (28 September 1999). "Expedia joins IPO bandwagon". Travel Weekly.
5. (4 October 1999). "Travelocity Bumps Expedia".
6. (17 July 2001). "Diller’s USA to Buy 75% of Expedia". Los Angeles Times.
7. (10 August 2005). "IAC completes spinoff of Expedia travel group". Travel Weekly.
8. Karen Jacobs. (8 April 2011). "Expedia shares gain on TripAdvisor spin-off plan".
9. Taylor Soper. (24 February 2020). "Expedia cuts 3,000 jobs, including 500 at new Seattle HQ". GeekWire.
10. Vaughn, Harlan. (October 20, 2025). "Best Hotel Booking Sites To Find The Cheapest Rates". [[Forbes]].
11. 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]].
12. Cappetta, Michael. (February 26, 2025). "Southwest Airlines Announces Big Partnership With Expedia—What to Know". [[Travel + Leisure]].
13. Witcher, Zach. (February 26, 2025). "You can now book Southwest Airlines flights on Expedia platforms". [[USA Today]].
14. Ulrich, Todd. (February 5, 2021). "Consumers grow frustrated with Expedia over COVID-19 refunds". [[WFTV]].
15. (September 9, 2020). "Traveler sues Expedia for refusing refunds on canceled flights during COVID-19 pandemic". USA Today.
16. RENDA, MATTHEW. (August 19, 2016). "Hotels Accuse Expedia, Orbitz of Brazen Deceit". [[Courthouse News Service]].
17. (August 17, 2016). "Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. ''et al''". [[Justia]].
18. IOVINO, NICHOLAS. (April 9, 2021). "Expedia Settles False Advertising Class Action With Hotels". [[Courthouse News Service]].