Last updated: 02:06 PM ET, Fri September 18 2015

Online Travel Giant Expedia Officially Purchases Orbitz

Travel Technology | Donald Wood | September 18, 2015

Online Travel Giant Expedia Officially Purchases Orbitz

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Expedia was already one of the largest players in the online travel industry, and the official purchase of Orbitz Worldwide only further cements the company’s spot at the top.

Expedia officially purchased Orbitz for $1.6 billion Thursday, one day after federal regulators dropped the objection filed to halt this merger from taking place.

The deal was originally announced in February —as reported by TravelPulse’s Patrick Clarke— and Expedia announced then that it expected $75 million annually in synergies. Expedia was the No. 1 ranked website in the online travel industry before the deal, and Orbitz was ranked No. 3, making the acquisition even more impressive.

The merger was on hold while the United States Justice Department analyzed the agreement, but officials decided against challenging the merger. The government announced Wednesday that it did not believe the purchase would hurt competitors or consumers, and that there was no evidence that Expedia had any intention of price gouging or charging new fees.

While the deal does limit the number of competitors in the industry, The Priceline Group is now the primary challenger to Expedia’s dominance, as it runs websites like Priceline,, Kayak and OpenTable.

Luckily for many of those who work for Orbitz, Expedia CEO Dara Khosrowshahi stated in February that there would likely not be mass layoffs, but that there would be corporate restructuring that could see some employees on the chopping block.


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