Expedia buys Orbitz for $1.3B – so will your vacation cost more as a result?


If you're a regular traveler, there's a good chance you'll have used either Expedia or Orbitz to make a booking before.

Well, the two online travel agency giants are set to become one, after a deal was agreed to that will see Expedia buy Orbitz for $1.3 billion, as reported today by the Wall Street Journal.

But what will it mean for consumers? Generally, when two major players in a given industry (Expedia is first, Orbitz third in online travel bookings) join forces then prices for consumers tend to rise as competition is reduced.

Time.com points out this happened when United and Continental merged, and there are fears the same will happen to cable TV customers should the Comcast-Time Warner merger go ahead.

But the magazine says this shouldn't happen with Expedia and Orbitz despite Priceline (which owns Kayak, among others) now being its only main competitor.

In fact, there's the potential prices could well fall.

The two companies will retain their individual identities, reports say, and the reason why industry experts think it won't lead to a rise in prices is because the actual business model of these companies is to offer consumers as much choice as possible to ensure they secure bookings through their websites.

Bloomberg reports that having Orbitz on board should actually give Expedia more clout to negotiate better deals from hotels and other travel companies, reducing the cost for consumers.

What's more, although Expedia and Priceline are the two big travel search engines, they still face plenty of competition elsewhere as well, not least through hotel, airline and car rental companies selling deals directly to consumers, as well as other niche websites such as AirBNB.

It remains to be seen whether the predictions come true, but for now, there is hope that this particular corporate merger won't hit consumers in the pocket.

Next Up

Yia Vang - media photo - crop 2

Union Hmong Kitchen will move into Mpls. food hall

Chef Yia Vang said they're "so excited to settle in and have a home."

ISSAboveYou - Duluth North Shore - Oct 18 2021

Watch: Mille Lacs, Duluth captured in stunning video from ISS

The space station provides a vantage point 260 miles above the Earth's surface.


Ladies and gentlemen, The Weeknd has canceled his St. Paul show

He's made changes to his 2022 tour that involves scrapping his Xcel Energy Center gig.

Pixabay - police lights, tape

Man released from custody after admitting to fatal shooting in ND

Authorities said there is no threat to the public.


MN water tower in the running for Tank of the Year

It was the only water tank to receive more than 5,000 votes.

first snow

Any sign of snow in the forecast for Minnesota?

The stars could align for some flurries in northern Minnesota this week, but that's about it.

Flickr - 14 year old vaccine shot - Navy Medicine

Walz announces $200 reward for kids 12-17 who get COVID shots

Those ages have the lowest vaccination rates among all eligible age groups.