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Expedia

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] The name "Expedia" is a portmanteau of the words "exploration" and "speed."[4]

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.[5] Expedia is the lead travel app in the US market, with 19.3% market share, and operates over 200 travel websites.[6]

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.[7] 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.[8][9]

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.[10] 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.[11]

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 %.[12]

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.”[13]

Expedia, Hotels.com, and Vrbo share a loyalty program called One Key, which launched in July 2023.[14][15]

In 2025, Expedia was the first online travel agency to partner with Southwest Airlines to start selling tickets on behalf of the airline.[16][17][18]

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.[19] This led to many lawsuits.[20][21]

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".[22] In April 2021, the lawsuit was settled and the company promised not to engage in false advertising.[23]

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.[24]

See also

  • Holiday cottage
  • Vacation rental

Further reading

External links

References

  1. Jamie Biesiada. Expedia says AI is improving the customer experience and generating revenue Travel Weekly, August 4, 2025^
  2. History of Expedia, Inc. FundingUniverse, retrieved 2026-02-25^
  3. Porters Five Forces. What is Brief History of Expedia Group Company? Porter's Five Forces, 2025-12-10, retrieved 2026-02-25^
  4. Expedia Group www.expediagroup.com, retrieved 2026-02-25^
  5. Topic: Expedia Group, Inc. Statista, retrieved 2026-02-25^
  6. Expedia Revenue and Usage Statistics (2026) Business of Apps, retrieved 2026-02-25^
  7. Connecting to a New Frontier Los Angeles Times, 6 September 1996, retrieved 7 August 2025^
  8. Expedia joins IPO bandwagon Travel Weekly, 28 September 1999, retrieved 7 August 2025^
  9. Travelocity Bumps Expedia Forbes, 4 October 1999, retrieved 7 August 2025^
  10. Diller’s USA to Buy 75% of Expedia Los Angeles Times, 17 July 2001, retrieved 7 August 2025^
  11. IAC completes spinoff of Expedia travel group Travel Weekly, 10 August 2005, retrieved 7 August 2025^
  12. Karen Jacobs. Expedia shares gain on TripAdvisor spin-off plan 8 April 2011, retrieved 7 August 2025^
  13. Taylor Soper. Expedia cuts 3,000 jobs, including 500 at new Seattle HQ GeekWire, 24 February 2020, retrieved 7 August 2025^
  14. Harlan Vaughn. Best Hotel Booking Sites To Find The Cheapest Rates Forbes, October 20, 2025, retrieved 20 December 2025^
  15. Rachel Chang. You Can Win $60K to Spend on Travel Thanks to Expedia’s New Rewards Program — Here’s How Travel + Leisure, July 18, 2023, retrieved 20 December 2025^
  16. Michael Cappetta. Southwest Airlines Announces Big Partnership With Expedia—What to Know Travel + Leisure, February 26, 2025^
  17. Robert Silk. Southwest puts flights on Expedia Travel Weekly, February 26, 2025^
  18. Zach Witcher. You can now book Southwest Airlines flights on Expedia platforms USA Today, February 26, 2025^
  19. Todd Ulrich. Consumers grow frustrated with Expedia over COVID-19 refunds WFTV, February 5, 2021^
  20. Traveler sues Expedia for refusing refunds on canceled flights during COVID-19 pandemic USA Today, September 9, 2020^
  21. MATTHEW RENDA. Hotels Accuse Expedia, Orbitz of Brazen Deceit Courthouse News Service, August 19, 2016^
  22. Buckeye Tree Lodge and Sequoia Village Inn, LLC v. Expedia, Inc. et al Justia, August 17, 2016^
  23. NICHOLAS IOVINO. Expedia Settles False Advertising Class Action With Hotels Courthouse News Service, April 9, 2021^
  24. Opinion: TripAdvisor, Booking.com, Expedia – please stop offering holidays in illegal Israeli settlements The Independent, retrieved 2026-03-29^