What the Expedia-Hopper Split Means for Online Travel

Airbnb was the top-spending travel brand on U.S. national TV during the first 11 months of 2022 at an estimated $86.5 million, but it was merely the ninth most-seen among travel websites, hotels and motels, resorts and theme parks, cruise lines and airlines.

Capital One, which led a $170 million investment round in travel app Hopper in 2021, has added $96 million to the kitty, and the companies announced a long-term partnership between Hopper and Capital One Travel.

Do you remember a few years ago how there was so much talk in online travel about the Booking Holdings–Expedia Group duopoly? How Expedia Group, which owned Expedia, Travelocity, Orbitz and Hotels.com, and Booking, with brands including Booking.com, Kayak, Priceline and Agoda, controlled the hotel market and a whole lot more in travel?

California-based RedAwning announced it acquired channel manager Lexicon Travel Technologies. Terms of the deal were not disclosed.

The old boys network in online travel — yes, let’s call it what it is — has reunited again to accomplish a formidable goal that has frustrated numerous startups in the past. The aim is to disrupt online cruise booking.

A research report found that Expedia Group has lost global hotel market share since the onset of the pandemic, and all of it has come from plunging business at non-core brands, such as Hotwire, eBookers, Orbitz and Travelocity.

The longtime business models of online travel companies ranging from Airbnb to Expedia and Booking.com are getting increased scrutiny from the media and short-term rental hosts because these companies hold onto customer funds, and invest them for profits before disbursing them, sometimes months later.

Rumors have surfaced on social media that Expedia Group would announce this Thursday during its fourth quarter earnings call that customers would no longer be able to book vacation rentals on Expedia.com — but that’s not going to happen because it would be self-sabotage.

It’s another earnings season so online travel companies such as Airbnb, Expedia and Tripadvisor occasionally present facts in a misleading — or at least in an exceedingly positive-sounding — way.

Travel metasearch sites such as Trivago and Tripadvisor fell considerably short of pre-pandemic 2019 revenue levels in 2022 while travel companies in other sectors, such as Airbnb in short-term rentals, and tours and activities provider Viator greatly exceeded their marks from three years ago.

Can you imagine an easier application for generative AI than creating travel itineraries and in-destination tour plans, in particular? One way or another, Tripadvisor will have to deal with this emerging technology because it runs square into the company’s evolving turnaround strategy.

Booking.com, which has marketing relationships with the International Cricket Council and the Union of European Football Associations, is playing ball with Major League Baseball.