The news: Seattle travel giant Expedia said on Tuesday that it had agreed to sell its business subsidiary Egencia to American Express Global Business Travel. Both companies offer business travel management tools. Financial terms of the deal were not disclosed.
Travel trends: It’s unclear how business travel will rebound from the pandemic, with many executives citing cost savings through video meetings and a drive to cut carbon emissions.
Expedia’s B2B unit, which includes Egencia, saw revenue drop 64% to $ 942 million in 2020 as the pandemic rocked the travel industry. B2B accounted for 18% of Expedia’s total revenue last year.
Matt Hulett, a former Egencia executive, said the deal presents an opening for other B2B travel agencies. “Business travel is still outdated and has a lot of innovation ahead of it,” he said in a tweet.
5. This acquisition by American Express will probably be an opportunity for a new startup to challenge a less innovative incumbent. I don’t know who it will be, but look for players like @TripActions and others to generate opportunities and alpha.
– Matt Hulett (@matt_hulett) 4 mai 2021
Context of Egencia: The business arm of Expedia was originally called Expedia Corporate Travel and was renamed Egencia in 2008. In 2004, Expedia acquired a French business travel company called Egencia.
The acquisition is part of Expedia’s move to streamline parts of its operations.
“We are excited about the potential transaction and what GBT and Egencia could achieve together, as Expedia Group seeks to simplify our business and be a leader in all of our efforts,” said Ariane Gorin, President of Expedia Business Services, in a statement.
Previously: Expedia launches brand refresh, new features and advertising campaign in anticipation of travel boom
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