Expedia: The Changing Business Model



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Code : BSM0008

Year :
2004

Industry : Transportation

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Having started as an on-line travel agent for the airline companies in 1994, Expedia increased its offerings and became the world's leading on-line travel agent in 2002. The success of Expedia was attributed to the shift in its business model from 'commission model' to 'merchant model'.

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Pedagogical Objectives:

  • To discuss how Expedia reinvented its business by creating multiple profit centers like hotel bookings, car rentals, etc
  • To discuss the unique concepts that the company has innovated to help it to come out from the travel slump after the September 11 downturn

    Keywords : Expedia; Business model; Commission model; Merchant model; On-line travel agent; Corporate Strategies Case Study; Travel business; Dynamic packaging; Business travel industry; Richard Barton; Travelocity; Metropolitan Travel; InterActiveCorp; USA Networks Incorporated; Newtrade Technologies; Expert searching and pricing

    Contents :
    » THE EARLY DAYS
    » THE CHANGING BUSINESS MODEL
    » THE CHALLENGES


    Case Introduction >>


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