Expedia replaced by Orbitz
Posted on: July 2nd, 2008 by Doug SmithMSN has replaced Expedia, its long-time travel services provider and partner, with online rival Orbitz. From now on, Orbitz and MSN will work together in both the United Kingdom and the United States, thus leaving Expedia out in the cold. This change effectively means that whenever an internet user tries to search or book travel through a site operated by MSN, in either the UK or the US, they will be presented offers available through Orbitz or ebookers.com, rather than Expedia.
As could be expected, Orbitz was particularly pleased to sign this new partnership with MSN and as the travel company pointed out, this new deal would provide it far more visibility than ever before and may result in an increase in reservations. Steve Barnhart, Orbitz’ chief executive officer, noted that he expects an increase in traffic to the site, from both the UK and the US.
As much as Orbitz stands to benefit from this partnership, Expedia will likely be hit quite hard by the loss of its relationship with Microsoft. Around 10 percent of all traffic to Expedia came from customers who used the search facilities of MSN-branded websites. Nevertheless, the number of purchases by clients who used MSN to arrange a booking only stood at a much more modest 3 percent.
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