Travelocity to be powered by Expedia in new deal

US travel giants Travelocity and Expedia have inked a new partnership whereby Expedia will run the technology behind the current Travelocity platforms in North America.

The deal will also mean that Travelocity has access to Expedia’s supply and customer services.

However, for the time being, Travelocity will remain owned by Sabre Holdings, with the deal not affecting European businesses like

Expedia saw a 13% rise in bookings in Q2 2013
Expedia saw a 13% rise in bookings in Q2 2013 but profits fell

“Over the years, Travelocity has become one of the most recognised travel brands in the US and Canada,” said Expedia CEO Dara Khosrowshahi. “Going forward, this agreement will enable Travelocity to focus on further building its brand while at the same time providing consumers with an enhanced suite of travel products and services.

This announcement stands as a true testament to the advanced capabilities that our significant technology investments over the past several years enabled us to build. We believe volume generated through the agreement will add further scale to Expedia’s global supply and customer service capabilities.

The news come just a month after Travel Daily reported that Expedia profits were sliding with the company reporting a significant drop in second quarter profits of somewhere in the region of 39% – or US$94.3million.

Carl Sparks, president and CEO, Travelocity Global: “Since launching in 1996, Travelocity has grown from a pioneering Internet start-up to one of the leading brands in travel.

“In staying true to our core values of meeting the needs of both consumers and travel suppliers, we have elected to evolve and strengthen our business model in the US and Canada by working with Expedia, Inc. to offer a top-notch booking platform and a more robust supply of travel options, allowing us to focus increased resources on building our competitive strengths in marketing and retailing.”

According to the Wall Street Journal, both parties will begin development immediately, with launch expected in 2014.

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