Expedia.com Launches Opaque Hotel Model Powered by Hotwire

Enables hotels to reach more customers with unsold opaque inventory while protecting retail rates

Oct. 25, 2010 – Expedia, Inc. (NASDAQ: EXPE), the world’s largest online travel company, today announced it has extended its Hotwire® opaque model to Expedia.com®, offering “Unpublished Rate” hotels throughout the U.S., Canada, Mexico, Europe, Australia, New Zealand and Hong Kong.

Through this collaboration between sister companies Hotwire and Expedia.com, the more than 25,000 hotels participating in Hotwire will now have their opaque inventory offered on Expedia.com as well. Hotels will continue to manage and load their own room rates through Hotwire, allowing them access to additional demand for their unsold inventory. The final pricing and display information for the opaque rates on Expedia.com will also continue to be managed by Hotwire.

“Hotel rooms are a perishable - you can’t sell yesterday’s rooms,” said Jay Hubbs, director of revenue management, Expedia Partner® Services Group. “Expedia is extending its opaque model to allow hotels the opportunity to fill unsold rooms with customers that would have very likely otherwise booked a different property.”

The opaque model is a yield management tool that benefits both hotels and guests. It helps hotels protect retail rates while giving travelers the opportunity to book quality properties at a great value. Travelers will book the discounted rate up front knowing information about only the star rating, amenities and neighborhood location, and will then learn the hotel’s name after they have booked the room. With nearly two million unique shoppers visiting Expedia.com per day, the company has extended the reach of its opaque model, providing hotels the ability to discount in a targeted, need-based manner without compromising retail rates.

“Optimizing RevPAR is a primary driver in revenue management, so hotels must look for ways to generate revenue wherever they can,” Hubbs added. “By extending the successful Hotwire opaque model to the larger Expedia.com marketplace, we are providing our hotel partners further distribution for their unsold inventory, resulting in incremental bookings to them, and helping them to maximize revenue across all our sites.”

About Expedia, Inc.
Expedia, Inc. is the largest online travel company in the world, with an extensive brand portfolio that includes more than 90 localized Expedia.com®- and Hotels.com®-branded sites; leading U.S. discount travel site Hotwire®; leading agency hotel company Venere.com™; Egencia™, the world's fifth largest corporate travel management company; the world's largest travel community TripAdvisor® Media Network; destination activities provider ExpediaLocalExpert®; luxury travel specialist Classic Vacations®; and China's second largest booking site eLong™. The company delivers consumers value in leisure and business travel, drives incremental demand and direct bookings to travel suppliers, and provides advertisers vast opportunity to reach the most valuable audience of in-market travel consumers anywhere through TripAdvisor Media Network and Expedia Media Solutions. Expedia also powers bookings for some of the world’s leading airlines and hotels, top consumer brands, high traffic websites, and thousands of active affiliates through Expedia® Affiliate Network. (NASDAQ: EXPE)

About Expedia Partner Services Group
Expedia Partner Services Group (PSG) is the central point of contact for travel suppliers to access the global Expedia marketplace of leading travel brands comprising more than 90 points of sale worldwide. With hundreds of employees in local markets throughout the world, Expedia® PSG makes it easy for suppliers to meet their global distribution objectives, and delivers a portfolio of innovative connectivity solutions, rate and inventory management tools, business intelligence reports, and online marketing expertise.

Expedia and Expedia.com are either registered trademarks or trademarks of Expedia, Inc. in the U.S. and/or other countries. Hotwire, is either registered trademark or trademark of Hotwire, Inc., in the U.S. and/or other countries. Other logos or product and company names mentioned herein may be the property of their respective owners.

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