Top Business News
Expedia, Seeking Market Share, Lifts Fees
Jeanine Poggi
05/27/09 - 04:43 PM EDT
Expedia(EXPE Quote) is making some copy-cat moves in an effort to gain market share in the flailing travel industry.
The online travel agency is permanently lifting fees for booking flights, a move rival Priceline.com(PCLN Quote) successfully made more than two years ago.
Orbitz Worldwide(OWW Quote) and Travelocity, subsidiary of Sabre, have also been offering competitive prices and promotions to gain market share.
Expedia had already lifted its air-booking fees in March as part of a promotion scheduled to run through Sunday, and investors and analysts are waiting to see if Orbitz and Travelocity will also permanently lift fees.
Expedia also said it ended fees for travelers to change or cancel their hotel, car rental and cruise reservations, as well as for nearly all flight reservations.
Shares of Expedia dropped 1% to $15.80 in afternoon trading, while Priceline.com gained 1% to $106.07 and Orbitz lost 2% to $2.18.