After buying HomeAway and other travel sites, you can expect more benefits from Expedia

BELLEVUE — Not too far in the future, you could book an apartment in London or a machiya in Japan on the Expedia website. That’s what we learnt during a session with Expedia Inc’s chief executive officer Dara Khosrowshahi at the company’s head office in Bellevue, Washington, where he shared more about the travel conglomerate’s developments.

Hardcore travellers and travel watchers would have probably read the news that travel company Expedia has bought vacation rental website HomeAway — which has more than a million homes in 190 countries listed — with interest last December. After all, it’s a clear signal the company is serious about beefing up its offerings and taking on competition like Airbnb to provide more choices to travellers.

Khosrowshahi revealed the purchase was motivated by the fact that consumers do want an inventory of alternative accommodation. The plan is to offer the HomeAway inventory on Expedia itself and on sister site Hotels.com eventually, although Expedia declined to put a timeline to it.

And the acquisition, costing US$3.9 billion (S$5.3 billion), is Expedia’s biggest purchase to date. It capped off a busy 2015 where travel sites Orbitz Worldwide (US$1.3 billion) and Travelocity (US$280 million) were also added to the Expedia portfolio. Closer to home, Expedia increased its stake in its joint venture with AirAsia in February last year. It now owns a 75 per cent stake in AAE Travel, which was set up in 2011.

“AirAsia has been a terrific partner and understands the South-east Asian markets well. Through the venture, we began learning about each market’s specific wants and needs, and, eventually, we had confidence in increasing our stake in the joint venture,” Khosrowshahi told TODAY.

What it means for travellers

The potential for Asia looks promising. Findings from travel industry research authority PhocusWright shows Expedia received US$60 million worth of gross bookings from the Asia-Pacific market. Khosrowshahi said after being in Asia for some time, Expedia now has data from this region that reveal what consumers want, and the company is better able to offer it to them; travellers can look forward to Expedia “aggressively investing” in the region.

He added: “We are hoping to tailor products and services — according to our Test & Learn ethos (an emphasis on constant research, insights and testing) — to suit diverse consumer traits and travel patterns.”

One area it is looking at is how travellers book and manage their trips through a mobile device, to promote more competitive products. The mobile penetration rate here in Singapore is described as “phenomenal”: 85 per cent of the population carry a mobile device; 30 per cent of us made an online purchase on our mobile phones in just the previous month according to data from a We Are Social study conducted in January this year.

While these are being tinkered with, Expedia has ramped up its suite of products. It is working with hotel partners to improve the stay for customers through its real-time review system on the platform. Hotels are thereby “incentivised to provide the best guest experience” and help improve guest property interaction. Benoit Jolin, Expedia’s vice-president of global product, explained that his team is also working with hotels to explore how guests can enjoy value-added promotions, such as free tickets to a show or a voucher for a cafe nearby instead of merely cheaper prices. “Travellers are not looking for the cheapest products. They’re looking for a fair price, great memories and not to get it wrong when they travel,” he said. “Expedia wants to help market this experience of unique stays and activities to consumers.”

Speaking of activities, Expedia refreshed its Tours and Activities component, adding it to its mobile app last June. You can now book an activity you fancy immediately upon reaching a destination. A real-time review system for travellers to leave their comments about their experiences was also introduced last August. Brian Keffeler, principal global product manager, local expert and ground transportation, highlighted that his team is experimenting with push notifications to deepen the travel experience and is working to bundle these tours and local experiences as part of the bigger travel packages.

Travellers would also be able to search and book train tickets on Expedia in time, following a tie-up with rail ticketing technology firm SilverRail announced last year. SilverRail currently has links with more than 55 rail carriers including Renfe from Spain and SJ in Sweden, and is looking to enter Asia.

Ultimately, Expedia is expanding and scaling to create a better product and offer better value proposition to consumers, said Expedia’s chief financial officer Mark Okerstrom. “We’re connecting (travel) suppliers to travellers,” he said. “The bigger the assortment, the better it is for travellers.”