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Travelocity-Expedia Deal Gives Travel Search Its Yahoo-Bing Moment
Travelocity, one of the web’s longstanding travel search engines and online travel agencies, is getting out of the travel search business.
The company announced a “strategic marketing agreement” yesterday with longtime competitor Expedia, which calls for Expedia to begin powering the technology used on Travelocity.com. As the Wall Street Journal reports, that will include powering hotel and airfare searches, booking trips, and even customer service.
It may remind you of the 2009 agreement when Yahoo essentially got out of the search business and turned its search results over to Bing.
Travelocity and Expedia say they’ll begin implementing the agreement right away and the change on Travelocity’s website should be in place next year.
When Expedia begins powering those travel search functions, Travelocity will “focus its efforts on promoting its brand and marketing the broad offering of travel services and supply made available through this agreement.” In other words, Travelocity will essentially become an Expedia affiliate. As Tnooz reports, Travelocity will be paid via “performance-based marketing fees related to bookings.”