Expedia owner buys Hotwire for $665m
InterActiveCorp, which owns Expedia.com and Hotels.com, is to buy Hotwire.com.
InterActiveCorp will pay $665 million in cash plus around $20 million in options and warrants. It says that Hotwire will accumulate about $700 million in gross bookings during 2003.
According to comScore Networks, the acquisition means InterActiveCorp will have control of three of the top ten most visited travel websites in the US.
Hotwire was founded in 2000 by a number of US airlines – American, American West, Continental, Northwest, United and US Airways, as well as the Texas Pacific Group. The website sells “opaque travel”, whereby the consumer searches and selects a specific rate without knowing who the supplier is until after the item is purchased.
Hotwire will be incorporated into IAC Travel, the travel division of InterActiveCorp. It includes Expedia.com, Expedia Corporate Travel, Classic Custom Vacations, Newtrade Technologies, Hotels.com, and its affiliated brands – Travelnow.com, Interval International, and TV Travel Shop. The deal is expected to be completed by the end of the year, but is still subject to regulatory approval.
InterActiveCorp chairman and chief executive, Barry Diller said: “It is not so long ago that these online travel services didn’t exist – it ought to be now clear to all that they will stand the test of time and play an increasingly important role in every aspect of the travel experience.”
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers reduced timetable to over 60 destinations
Hands In, UATP join forces for airline multi-card payments
AirlineRatings reveals world's safest airline rankings for 2026
Vietnam warns airlines of possible flight reductions amid jet fuel shortages
Fliggy opens AI-powered travel bookings and developer tools