Company: Expedia, Inc.

Founders:

Microsoft Corporation

Industry: Travel, Technology

History:

The history of Expedia, Inc. goes back to its connections with the Microsoft Corporation. The online travel service was launched in October of 1996 as part of the Microsoft Network (MSN). Expedia’s travel-planning tools made bookings for airline tickets, hotel reservations, car rentals, vacation packages, and cruises possible online, allowing consumers to browse through a library of travel guides featuring travel-related content, news, and maps. It was the first online travel service to be offered by a major technology company.

The venture proved successful as by March of 1997, Expedia had booked $1 million in travel reservations within a 7-day timespan. In May of that same year, the site upgraded by adding real-time flight information, airline seat selection, and a massive directory of bed-and-breakfast inns and hotels.

In 1998, Expedia entered the corporate level market and began operations in the United Kingdom. It eventually opened sites in Canada and other European countries as well.

Expedia was spun off in 1999 as a publicly traded company but leaving Microsoft with controlling interest.

In 2001, Microsoft agreed to sell to USA Networks, Inc. The deal was finalized in February of 2002, after the sale of USA Networks’ entertainment properties. The company subsequently became known as USA Interactive, Inc.

USA Interactive, Inc. acquired the remaining shares of Expedia in 2003. USA Interactive, later renamed InterActiveCorp, declared that all of its properties would continue to operate independently.

Expedia owns and operates a diversified portfolio of well-recognized brands — including Expedia.com, Hotels.com, Hotwire.com, TripAdvisor, Egencia, Classic Vacations, and a range of other US-based and international businesses.

Over its short history, Expedia has expanded from selling airline tickets to offering a wide range of travel products such as discounted hotel rooms and packaged travel plans. Today, Expedia, Inc. is the largest online travel agency in the world, the third largest travel company in the US, and the fourth largest travel company in the world.

Leadership:

Barry Diller, Chairman and Senior Executive
Dara Khosrowshahi, President, CEO, and Director
Michael B. Adler, EVP and CFO