Richard Barton, Expedia�s president and CEO, attributes the strong lodging momentum to two underlying factors:

• The success of Expedia�s Expert Searching and Pricing (ESP) technology. Introduced in January, ESP gives travelers powerful sorting tools and the flexibility to build their own, customized air and hotel packages at discounted prices.  For suppliers, ESP increases the prominence of lodging inventory within the flight search path, providing powerful cross sell opportunities.  Additionally, packages hide the prices of individual components, making it easier for suppliers to offer discounted rates while protecting their rate integrity.
• The most extensive offering of published and negotiated rates available.  Expedia offers a total of 75,000 lodging options across its properties.  From specialty lodging, such as villas, condos, vacation homes and bed & breakfasts, to hotel lodging with discounts of up to 70 percent off standard rates, Expedia offers an unprecedented variety of lodging prices and choices around the world.  Consumers are increasingly coming to Expedia for its diverse inventory and discounts available through services such as Expedia Packages and Expedia Special Rates.  With Expedia Special Rates, customers are guaranteed the lowest prices on lodging.

The strong gains in hotel sales also indicate the strength of Expedia�s merchant business model, in which Expedia acts as a wholesaler, negotiating net prices on inventory directly with suppliers.  The business model benefits customers by giving them access to compelling deals they could not get elsewhere; it helps suppliers achieve their sales and marketing goals; and it increases gross profit per transaction for Expedia.

�Our objective over the past year has been to diversify our business to become a major seller of everything travel, including air, hotels, car rentals, vacation packages and cruises,� Barton said.  �Through technology and inventory innovations, we are accomplishing that goal.�

Recent updates in Expedia lodging will make it even easier for travelers to find the right choice.  Now, a search from the home page will provide travelers with more prominent links to hotels on a map and to condos, villas and apartments (when available).  The first to provide an integrated view of hotels on a map, Expedia has updated the hotel map service to show hotel availability at a glance.

Expedia, Inc. operates Expedia.com, a leading online Web site in the
United States with localized versions in Canada, Germany and the United Kingdom.  

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