Travel-related sites have been doing quite some business online. It has grown quite big that we now see several players in the field trying to help people on their next vacation or travel plans. But it also has seen increased competition among the major players. It seems that there has been news lately that common competitors in the industry are consolidating to become a single and bigger company. That is recently what is happening with what online travel agency Expedia has been doing. Now, there is news that the company is also buying online travel agency and erstwhile competitor Orbitz.
Expedia has announced that it is buying Orbitz, the third-ranked web-based travel agency in the US, for around $1.6 billion. This comes on the heels of Expedia’s recent purchase of Travelocity for $280 million just last month. Based on its actions, you can see that Expedia may be trying to develop itself as a web-based travel-related business behemoth. The company already owns popular travel-related websites Hotels.com and Hotwire. So far, it has gotten two business rivals in its fold. That leaves TripAdvisor and other relatively smaller upstarts like Kayak, Hipmunk and Hitlist to challenge Expedia for the lucrative online travel market.
People have increasingly been depending on such websites to look for great deals and bargains for their next travel plans. From cheap hotels, airfare to other travel packages, people can now find interesting deals online. Instead of looking through a myriad of sites, many people will now just head on to Expedia and its partner sites to check out such deals. In a way, it makes good business sense the way Expedia is shaking up the industry it belongs in. But it can also be a two-edged sword. There might be complaints that the way Expedia is moving, it might just become too big for the other competitors to ever challenge. It has the potential to monopolize the industry as it continues to buy out its competitors. Whether this is good or bad for the consumers, especially to avid travelers all around the world, we will just have to wait and see.