Expedia

Corporate brand

A global online travel brand offering booking services for flights, hotels, vacation rentals, car hire, cruises, activities, and travel packages.

Last updated October 26, 2026

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Overview

Expedia is a major American online travel brand operated by Expedia Group. It began inside Microsoft in 1996 as an early consumer internet travel service, giving users the ability to search and book air travel, hotels, and rental cars online while also consulting digital travel information. The service was developed by a small team led by Rich Barton and was intended to make travel purchasing more direct and transparent by reducing dependence on traditional travel agents. Microsoft first introduced the Expedia booking service through MSN in October 1996. Its combination of searchable travel inventory, online reservations, and consumer-oriented information helped establish the online travel agency model. The business was separated from Microsoft through an initial public offering in 1999, then became part of Barry Diller's USA Networks and IAC travel portfolio before being spun out as an independent public company, Expedia Inc., in 2005. Expedia later became the central brand within a broader travel group that also assembled or operated brands such as Hotels.com, Hotwire, Vrbo, and Trivago. The Expedia brand now provides a broad set of travel transactions through its website and mobile applications. Customers can search and book airline tickets, accommodations, vacation rentals, rental cars, cruises, activities, and bundled vacation packages. The brand's value proposition is built around combining multiple components of a trip in one digital account and transaction flow. It also uses loyalty, package pricing, mobile functionality, member offers, and cross-brand integration to encourage repeat bookings. Expedia operates in a highly competitive online travel market alongside Booking Holdings, Airbnb, direct airline and hotel websites, regional online travel agencies, and metasearch services. Its position is supported by the scale of Expedia Group's supplier relationships, technology infrastructure, marketing capabilities, and international distribution. The Expedia name is particularly prominent in the United States, while the wider group reaches customers through numerous brands and localized websites. In 2023, Expedia, Hotels.com, and Vrbo began moving toward a shared loyalty proposition called One Key, intended to allow members to earn and use rewards across participating brands. This represented a strategic effort to connect the group's accommodation, vacation-rental, and general travel businesses rather than treating each brand as an entirely separate customer relationship. Expedia has also continued to expand its distribution role, including a 2025 agreement under which it became the first online travel agency to sell Southwest Airlines tickets on the airline's behalf. The brand has faced operational and reputational challenges. During the COVID-19 disruption, travelers reported difficulty obtaining refunds for cancelled flights and experienced long waits for customer-service assistance, producing litigation and significant public criticism. Expedia has also faced allegations concerning misleading hotel advertising and criticism from human-rights organizations over listings in Israeli settlements in occupied Palestinian territories. These controversies illustrate the legal, regulatory, and customer-service risks associated with operating a large marketplace whose inventory is supplied by many third parties.

History

Expedia was created within Microsoft during the first wave of consumer internet services. The project was developed in Redmond, Washington, by a team led by Rich Barton and was designed to bring travel search and booking to ordinary web users. Microsoft launched the first public version through the Microsoft Network in October 1996. Unlike traditional travel publishing alone, the service connected travel information with transactional tools, allowing users to search for flights, hotels, and rental cars and complete reservations online. The service attracted attention as internet access expanded and consumers became more comfortable purchasing travel digitally. Microsoft subsequently prepared Expedia for a public offering. The company's initial public offering took place on November 10, 1999. Its first-day market performance reflected investor enthusiasm for internet businesses and online travel, and the offering established Expedia as a separately traded travel technology company rather than merely an MSN feature. In 2001, Barry Diller's USA Networks agreed to acquire a controlling interest in Expedia for approximately $1.5 billion. Expedia later became part of the broader IAC structure, and IAC took full control in 2003. Under that ownership, Expedia was combined with other travel assets and developed from a single booking website into a platform associated with multiple online travel brands. Pressure from shareholders seeking a clearer valuation for the travel businesses led to the separation of Expedia's travel operations from IAC. Expedia Inc. became an independent Nasdaq-listed company on August 9, 2005. During the late 2000s and 2010s, Expedia expanded its commercial reach through a mixture of acquisitions, brand development, and international growth. The wider portfolio included Hotels.com, Hotwire, vacation-rental operations later associated with Vrbo, and an interest in or ownership relationship involving metasearch activity such as Trivago. This structure allowed the group to address different stages of the travel-shopping process, from broad search and comparison to accommodation, packaged travel, and vacation rentals. Expedia remained the group's general-purpose consumer travel brand while the corporate portfolio became one of the largest online travel networks in the world. A notable portfolio decision came in 2011, when Expedia announced plans to separate its user-generated-content business TripAdvisor. The separation was intended to give the content and review business a more distinct corporate identity and valuation. Expedia continued to focus on transaction-oriented travel services, although customer reviews and travel information remained important to online booking behavior. The company encountered organizational pressure as competition increased from Booking Holdings, Airbnb, direct supplier websites, metasearch companies, and mobile travel applications. In February 2020, chairman Barry Diller announced a major cost-reduction program and described the organization as overly complex and inefficient. Approximately 3,000 positions were eliminated, representing about 12 percent of the workforce according to the cited reference material. The restructuring was announced immediately before the global COVID-19 travel collapse, which created an additional operational shock for Expedia and the wider travel industry. The pandemic generated extraordinary demand for cancellations, rebookings, and refunds. Expedia customers complained that cancelled-flight refunds were difficult to obtain and that telephone support involved lengthy waits. The issue resulted in lawsuits and contributed to criticism of online travel agencies' handling of airline disruption. The episode highlighted the tension between Expedia's role as an intermediary and customers' expectation that the booking platform should directly resolve supplier cancellations. Expedia later emphasized cross-brand integration and customer retention. In July 2023, Expedia, Hotels.com, and Vrbo introduced One Key, a shared loyalty framework designed to connect rewards across the brands. The initiative sought to increase customer lifetime value by allowing travelers to use one rewards relationship for hotels, vacation rentals, and other travel purchases. In 2025, Expedia expanded its airline distribution activity through a partnership with Southwest Airlines under which Southwest tickets became available through Expedia's online travel agency channel. The brand continues to operate as an active Expedia Group business. Its present scope covers flights, lodging, vacation rentals, cars, cruises, activities, and packages through web and mobile interfaces. Its principal strategic challenges remain supplier relationships, price and inventory competition, customer-service expectations, privacy and marketplace regulation, advertising accuracy, and the political and legal implications of accommodation listings in contested territories.

2025
Southwest ticket distribution partnership
[1]Expediaen.wikipedia.org
Expedia became the first online travel agency to sell Southwest Airlines tickets on behalf of the airline.
2023
One Key loyalty program launches
[1]Expediaen.wikipedia.org
Expedia, Hotels.com, and Vrbo began operating under a shared loyalty proposition called One Key.
2020
Large-scale cost reduction
[1]Expediaen.wikipedia.org
Expedia announced a restructuring that eliminated approximately 3,000 jobs as it sought to simplify the organization.
2011
TripAdvisor separation announced
[1]Expediaen.wikipedia.org
Expedia announced plans to separate TripAdvisor from the main travel group.
2005
Expedia becomes an independent public company
[1]Expediaen.wikipedia.org
IAC spun off its travel division, creating the independently listed Expedia Inc.
2003
IAC takes full control
[1]Expediaen.wikipedia.org
IAC completed the process of taking full control of Expedia.
2001
USA Networks acquires control
[1]Expediaen.wikipedia.org
USA Networks agreed to purchase a controlling stake in Expedia, beginning its integration into Barry Diller's wider travel holdings.
1999
Initial public offering
[1]Expediaen.wikipedia.org
Expedia completed its initial public offering and became a separately traded online travel company.
1996
Microsoft launches Expedia
[1]Expediaen.wikipedia.org
Microsoft introduced Expedia through MSN as an online service for searching and booking flights, hotels, and rental cars.

Products and positioning

A mainstream-to-upmarket, full-service online travel marketplace centered on convenient, multi-product trip planning and booking.

Air travel · 1996
Expedia flight booking
The core flight product lets customers search airline schedules and fares, compare itineraries, and reserve air tickets through Expedia's website and mobile applications. It is integrated with other trip components, allowing travelers to combine flights with lodging, cars, activities, or vacation packages.
Accommodation · 1996
Expedia hotels and lodging
Expedia offers searchable hotel and lodging inventory with property information, rates, availability, reviews, and booking tools. Accommodation can be purchased independently or bundled with flights and other services. The product is central to the brand's one-stop travel proposition.
Packaged travel
Expedia vacation packages
Vacation packages combine travel components such as flights, hotels, and rental cars in a single shopping and booking experience. The package format is intended to simplify trip planning and may present different pricing from purchasing each component separately, subject to supplier terms.
Ground transportation · 1996
Expedia car rentals
The car-rental service allows customers to compare and reserve rental vehicles as standalone bookings or as part of a broader itinerary. It extends Expedia beyond air and hotel reservations and supports the brand's goal of handling several major trip requirements in one account.
Travel experiences
Expedia cruises and activities
Expedia also distributes cruise bookings, tours, attractions, and activities. These offerings address in-destination spending and help the platform participate in more stages of the travel journey than the initial transportation and accommodation reservation.
Loyalty program · 2023
One Key
One Key is a shared loyalty proposition connecting Expedia with Hotels.com and Vrbo. Introduced in 2023, it is designed to let eligible members accumulate and use rewards across participating Expedia Group travel brands.

Controversies

2021
Court approves Expedia hotel advertising settlement
A federal judge approved the class-action settlement involving Expedia after hotels alleged that Expedia's website falsely showed unaffiliated hotels as unavailable or sold out and redirected customers to partner hotels. The settlement includes restrictions on Expedia's availability messaging and advertising.
Source
2020
COVID-19 cancellation and refund complaints
During the pandemic, customers complained that refunds for cancelled flights were delayed and that reaching Expedia support could require excessive waiting. The issue led to lawsuits and criticism of the company's handling of supplier-driven cancellations.
Source
2020
Expedia faces class action over canceled-flight refunds
In a class action lawsuit, Daniel Mahoney alleged that Expedia, a travel booking service, violated the Washington Consumer Protection Act by refusing to refund the price of his airline ticket after his flight was canceled. The suit was filed against Expedia over the refund dispute.
Source
2019
Expedia and Orbitz reach Pennsylvania data breach settlement
Pennsylvania's attorney general reached a settlement with Expedia and Orbitz following an investigation into a 2018 data breach. The settlement requires the companies to pay $110,000, including an $80,000 civil penalty. The filing alleges that Orbitz misrepresented safeguards in its privacy policy and failed to fully implement Expedia data-security policies.
Source
2016
Alleged misleading hotel advertising and trademark infringement
A California lawsuit brought by independent lodging businesses alleged that Expedia-related advertising implied that consumers could book properties with which Expedia had no relationship and inaccurately presented some properties as sold out. The case was settled in 2021 with commitments concerning advertising conduct.
Source
Listings in Israeli settlements
Human-rights organizations and activists have criticized Expedia for offering accommodation in Israeli settlements in the occupied West Bank, arguing that such listings can support activities considered unlawful under international law.
Source

2025
Expand Southwest Airlines distributionStrategy
Background
Airline distribution is an important component of the online travel agency marketplace.
Action taken
Expedia began selling Southwest Airlines tickets on the airline's behalf.
Aftermath
The arrangement broadened Expedia's access to Southwest inventory and increased the brand's role in airline distribution.
Source
2023
Launch One KeyProduct launch
Background
Expedia Group sought to connect customer relationships across Expedia, Hotels.com, and Vrbo.
Action taken
The brands introduced a shared loyalty program allowing rewards to operate across participating services.
Aftermath
The program strengthened the group's cross-brand retention and bundled-travel strategy.
Source
2020
Implement a major cost-reduction programStrategy
Background
Management characterized the organization as too large and inefficient amid increasing competition and operational complexity.
Action taken
Expedia announced a restructuring and eliminated approximately 3,000 positions.
Aftermath
The restructuring preceded the severe travel downturn caused by COVID-19 and was followed by intense pressure on travel demand and customer support.
Source
2005
Spin off Expedia's travel divisionStrategy
Background
Shareholders sought a clearer separation and valuation of IAC's travel assets.
Action taken
IAC separated the travel division into an independently listed Expedia company.
Aftermath
Expedia became the publicly traded center of a broader online travel portfolio.
Source
1999
Separate Expedia from Microsoft through a public offeringStrategy
Background
Microsoft sought to develop Expedia as a distinct internet travel business after the service gained consumer traction.
Action taken
Expedia was taken public in November 1999.
Aftermath
The transaction established Expedia as a separately traded online travel company and created a platform for subsequent ownership changes.
IPO price. US$14 per share at offering (November 10, 1999)
Source

Recent events

2025
Expedia becomes Southwest Airlines' first online travel agency distribution partner[1]Expediaen.wikipedia.org
M&A
Expedia began selling Southwest Airlines tickets on the airline's behalf, expanding the brand's airline distribution role.
2023
Expedia launches One Key loyalty program across major travel brands[1]Expediaen.wikipedia.org
Product launch
Expedia, Hotels.com, and Vrbo began introducing a shared loyalty program intended to let members earn and redeem rewards across participating brands.

Sources17 sources

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