bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Sandy Li

Competition in the online travel business is heating up as Expedia, the world's largest Internet travel agency, gets set to introduce services in the Asia-Pacific in the first half of next year.

James Vaile, a vice-president of Expedia Asia-Pacific, said the region accounted for a third of the Internet population and its online travel market was projected to be worth up to US$8.3 billion by 2004.

'We have long considered the Asia-Pacific region as the next expansion target,' he said during a visit to Hong Kong.

Mr Vaile said negotiations with leading hotels and tour operators in the region were under way and he expected them to be concluded in the first quarter of next year.

Expedia, launched in the United States in 1996, could save customers up to 70 per cent using its online hotel bookings, Mr Vaile said.

He said the company had lined up partnerships with 450 airlines and 50,000 hotels worldwide, a network that could greatly enhance its bargaining power. Its partners include British Airways, United Airlines, American Airlines and leading international hotel chains.

He said the company sold 3.2 million hotel room nights for the three months to September, of which 2.6 million nights were related to special packages provided by 7,500 hotels.

Expedia generates revenue by offering its US$250,000 technology platform free in exchange for a share of revenues generated from its partnerships with hotels, airlines and travel agencies.

The Nasdaq-listed company had a market capitalisation of US$4.5 billion and expected its cash reserve to increase to US$525 million by the end of this month, he said.

The Asia-Pacific service will be provided through Worldwide Travel Exchange, Expedia's online travel business.

'The [Asia-Pacific] team will contract for and manage hotel inventory in the region, making it available to Expedia's existing international retail sites,' Mr Vaile said.

Expedia covers the US, Britain, Germany, Canada, the Netherlands and Italy. The US accounted for 90 per cent of revenue, he said.

Asian rival Hutchison-Priceline said more newcomers would help to create a bigger online travel market in the region.

'This kind of new site will grow the online business rather than be in competition,' said Hutchison-Priceline chief executive Alfredo Gangotena.



Expedia links up with hotels in Asian online travel drive