Rate a Business Decision

The article I am reading is “What Expedia’s Acquisition of Orbitz and Travelocity Means for Travelers” located in TIME Magazine (In other various websites too, I just chose TIME). The article is explaining how Expedia is buying Orbitz for $1.34 billion, right after the company bought Travelocity just a few weeks ago. This is causing a great concern wanderlust travelers. Orbitz is a company that operates a website used to research or plan to travel. Expedia announced that they were going to buy Expedia today [February 12, 2015]. Over the past year, Expedia has bought many brands to bring in new consumers. Buying Orbitz would be the most expensive, with other brands being between $2 million and $7 million.

 

Even after Expedia buys out Orbitz, there will be forces coming together compelling search engines to continue retrieving the same options, at the same price, for all travelers. Expedia wants to broaden their company to increase the amount of consumers the company has, but with Orbitz costing $1.34 billion, Expedia could possibly lose money in the outcome. Orbitz is the company that is most valuable, let’s keep it that way.

 

Expedia has already bought Hotels.com, Trivago, Classic Vacations, and many more.  I believe that Expedia does not need to buy Orbitz because of the brand and companies they already own.

 

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