U.S. Won't Challenge Expedia Acquisition Of Orbitz

NEW YORK (AP) — The Justice Department won't challenge travel booking site Expedia's $1.3 billion purchase of competitor Orbitz, saying the deal is unlikely to hurt consumers or reduce competition.

         The agency said Wednesday that it does not think Expedia will raise the commissions it charges to hotels, airlines and car rental companies or charge new fees to consumers. It noted that Expedia will still have to compete with The Priceline Group Inc. and others and says the online travel business is changing rapidly, with new options and competitors emerging.

         Expedia agreed to buy Orbitz for $12 per share in February, and Orbitz shareholders approved the sale in May. The companies have said they want to complete the deal before the end of 2015.

- Sponsors -

         The two companies own websites that allow travelers to book airline tickets, hotel rooms or car rentals. Expedia, of Bellevue, Washington, owns Expedia.com, Hotels.com, Check Tickets, Trivago, Hotwire.com and Travelocity. Orbitz, of Chicago, HotelClub.com, Orbitz.com and CheapTickets.com.

         Expedia is set to become the biggest company in the industry in terms of the number of bookings it handles. Priceline, the owner of Bookings.com, Kayak, and restaurant-booking site OpenTable, has more revenue.

         Last month the hotel industry said the deal would reduce choice for consumers, leading to higher prices for vacationers and larger fees for hotel owners. The American Hotel & Lodging Association said Expedia and Priceline will control 95 percent of U.S. online travel bookings, and it said the deal may cost hotels because Expedia charges higher commissions than Orbitz does.

- Partner Content -

Entergy’s Energy Smart Program Brings Cost Conscious Innovation to New Orleans

Offering comprehensive energy efficiency at no cost to the consumer, Entergy’s Energy Smart program incentivizes Entergy New Orleans customers to perform energy-saving upgrades in...

         The Justice Department said Orbitz is not a big source of bookings for hotels and others, so the purchase should not affect the commissions Expedia charges.

 

 

- Sponsors -

 

Digital Sponsors / Become a Sponsor

Follow the issues, companies and people that matter most to business in New Orleans.

Email Newsletter

Sign up for our email newsletter