Expedia, Marketing Strategy

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Dugyu Cin,18 December, 2010


Table of Contents
1. Introduction 3 2. Company Overview 3 3. Strategic Marketing of the Company 5 3.1 Mission and Vision 5 3.2 Business Strategy 5 3.3 SWOT Analysis 5 3.4 Supply and Demand 7 3.5 Definition of Objectives 8 3.6 Market Selection and Targeting 8 3.7 Choice of Positioning 9 3.8 Marketing Strategy 10 4. Conclusion 16 5. References/Bibliography 17


1. Introduction
This paper has been produced for the Marketing course and deals with the company profile of Expedia, Inc and its marketing strategy. Expedia, Inc is a totally Internet-based distributor of travel products and services, offering everything from flights, accommodations, car rentals, cruises to travel packages, thus encouraging customers to use their facilities to book the requisite services for an entire trip. Hence, the company has taken on the roles both of tour operator and travel agencies. The company owns; besides expedia.com; websites such as hotels.com, hotwire, TripAdvisor and now also venere.com. The web-based mega-agency is the world’s largest online travel group by a wide margin and we will have a closer look of why and how the company has been so successful over the last couple of years, which was certainly greatly influenced by its marketing strategy.

2. Company Overview
Expedia Inc Headquarters Regional Involvement Sector Involvement World Travel Retail Products Share (2009) Value Growth (20082009) USA Global Travel RetailProducts 3.0% -2.2%

Only 14 years ago, in 1996, a small division within Microsoft launched online travel booking site Expedia.com, which gave consumers a revolutionary new way to research and book travel. Three years later, Expedia was spun out of Microsoft, becoming a publicly traded company on NASDAQ under the symbol EXPE. Meanwhile, the other brands in the current day Expedia, Inc. portfolio were independently established and began their respective courses of development. In the first few years of the new millennium, Expedia became – and remains – the world’s leading online travel company. By 2001, it had acquired a number of other travel companies and in 2002 InterActiveCorp (IAC) acquired a controlling interest in Expedia. Expedia grew within IAC, and its synergies with its parent company’s other travel holdings became more and more salient. In 2005, IAC spun out its travel businesses under the name Expedia, Inc. Today Expedia, Inc. is the parent company to a global portfolio of leading consumer brands. The company primarily operates in the US, however its involvement is global. It is headquartered in Bellevue, Washington with offices throughout the Americas, Europe, and Asia-Pacific regions. It has 7,960 full-time and part-time employees worldwide across its network of brands, including approximately 1,770 employees of eLong, Inc., a Chinese subsidiary. Expedia's portfolio of brands includes Expedia.com, Hotels.com, Venere.com, Hotwire.com, Worldwide Travel Exchange (WWTE), Interactive Affiliate Network (IAN), Classic Vacations, Egencia (formerly Expedia Corporate Travel), eLong and TripAdvisor. 3

Through Expedia, users can do most things by themselves, from exploring potential destinations to developing a complete itinerary and making the necessary reservations. The services and functions can be described in the following categories: Reservations (main revenue-generating source that provides booking facilities for airlines, hotels, and cars), Vacation and Cruise Packages (for example resort, family, and skiing packages), My Travel (user creates his/her personalized page and itinerary), Places to Go and Interest & Activities (browse page for comprehensive destination information such as tourist spots, history, culture and festivals to transportation, accommodation, food, and visa requirements), Expedia Maps (place finder and driving directions), and other services (such as currency exchange rate, deals for promotional packages, and weather reports). Key...
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