The online travel agency is permanently lifting fees for booking flights, a move rival
successfully made more than two years ago.
, subsidiary of
, 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.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.