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Expedia, Inc.: Company Profile and SWOT Analysis by WMIntelligence

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This SWOT analysis and company profile is a crucial resource for industry executives and anyone looking to gain a better understanding of the company's business. WMI's 'Expedia, Inc.: Company Profile and SWOT Analysis' report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. WMI strictly follows a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report.

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									Expedia, Inc.

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Expedia, Inc.                                                                    Financial Snapshot

                                                                                 Operating Performance
Fast Facts
                                     3150 139th Avenue SE, Bellevue,             The company reported revenue of US$3,449.01
Headquarters Address
                                     98005,United States of America              million during the fiscal year 2011 (2011). The
                                                                                 company's revenue grew at a CAGR of 6.66% during
Telephone                            + 1 425 6797200
                                                                                 2007–2011, with an annual growth of 13.69% over
                                                                                 2010. In 2011, the company recorded an operating
Fax                                  + 1 425 7072722                             margin of 13.91%, as against 16.51% in 2010.

Website                              www.expediainc.com
                                                                                 Revenue and Margins
Ticker Symbol, Stock Exchange        EXPE, NASDAQ

Number of Employees                  8,900

Fiscal Year End                      December

Revenue (in US$ million)             3,449.01




SWOT Analysis

Strengths                            Weaknesses
Broad travel product reselling
                                     Declined Margins and Returns
operations

Expanding Market Share in Sector     Limited Exposure to Non-US Markets

Extensive Distibution Network        Limited Liquidity Position

Extensive distribution network and new
                                       Overdependence on the US market
channel penetration

Product Innovations                  Weak balance sheet position

Strong brand portfolio

Strong Portfolio of Brands

Opportunities                        Threats
Amendment in Visa Waiver Program
                                     Economic instability of the EU region
(VWP)

Continued Expansion in EMEA          Global Economic Crisis

Growth in global airline traffic     Intense Competition

Positive Outlook for Online Travel   Risk related to online identity theft and
Market                               hacking
Positive outlook for US travel and   Risks related to unforeseen
tourism industry                     circumstances

Recent Strategic Initiatives         Theft of Information

Strategic growth initiatives




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Expedia, Inc. - SWOT Profile                                                                                        Page 1
Expedia, Inc.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Solvency ..........................................................................................................................................................13
      2.2.5       Valuation ..........................................................................................................................................................14
    2.3       Key Competitors ...................................................................................................................................................15
3     Mergers & Acquisitions and Partnerships ........................................................................................... 16
    3.1       M&A and Partnerships Strategy ...........................................................................................................................16
4     Recent Developments ........................................................................................................................... 19
5     SWOT Analysis ...................................................................................................................................... 21
    5.1       SWOT Analysis - Overview ..................................................................................................................................21
    5.2       Strengths ..............................................................................................................................................................21
    5.3       Weaknesses .........................................................................................................................................................22
    5.4       Opportunities ........................................................................................................................................................23
    5.5       Threats .................................................................................................................................................................24
6     Company Statement .............................................................................................................................. 26
7     History .................................................................................................................................................... 30
8     Key Employees ...................................................................................................................................... 32
9     Key Employee Biographies................................................................................................................... 33
10    Locations and Subsidiaries .................................................................................................................. 34
    10.1      Head Office ..........................................................................................................................................................34
    10.2      Other Locations and Subsidiaries ........................................................................................................................34
11    Appendix ................................................................................................................................................ 35
    11.1      Methodology .........................................................................................................................................................35
    11.2      Ratio Definitions ...................................................................................................................................................35
    11.3      Disclaimer.............................................................................................................................................................39




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Expedia, Inc. - SWOT Profile                                                                                                                                                Page 2
Expedia, Inc.

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List of Tables

Table 1: Major Products and Services ..................................................................................................................................6
Table 2: Key Ratios - Annual ..................................................................................................................................................7
Table 3: Key Ratios - Interim ..................................................................................................................................................9
Table 4: Key Capital Market Indicators ..................................................................................................................................9
Table 5: History.....................................................................................................................................................................30
Table 6: Key Employees .......................................................................................................................................................32
Table 7: Key Employee Biographies ....................................................................................................................................33
Table 8: Subsidiaries ............................................................................................................................................................34




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Expedia, Inc. - SWOT Profile                                                                                                                                               Page 3
Expedia, Inc.

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List of Figures

Figure 1: Revenue and Operating Profit ...............................................................................................................................10
Figure 2: Financial Position ..................................................................................................................................................11
Figure 3: Net Debt vs. Gearing Ratio ...................................................................................................................................12
Figure 4: Solvency ................................................................................................................................................................13
Figure 5: Valuation ...............................................................................................................................................................14




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Expedia, Inc. - SWOT Profile                                                                                                                                             Page 4
Expedia, Inc.

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1 Business Analysis

1.1   Company Overview

Expedia, Inc. (Expedia) is an online travel company that provides travel management, destination activities, leisure and
business travel services and direct bookings to travel suppliers. The company offers online travel services under brands
such as Expedia.com, hotels.com, Hotwire, Egencia, TripAdvisor and Classic Vacations. The company also provides
travel products and services through private label and co-brand programs. In addition, the company provides information
through Trip Advisor Media Network and on transaction based websites. Furthermore, the company also provides travel
and non-travel advertisers access to the source of traffic and transactions, through various media and advertising
offerings. Expedia is headquartered in Bellevue, Washington, US.

1.2   Business Description

Expedia provides online travel services, empowering business and leisure travelers worldwide. The company also
provides travel products and services related with airlines, lodging facilities, destination service providers, car rental
companies, cruise lines and other travel product and service companies. It serves leisure and corporate travelers, travel
service providers and offline retail travel agents. In addition, Expedia offers information through Trip Advisor Media
Network and on transaction-based websites. Geographically, the company operates in the US, EMEA, and Asia Pacific
regions. The company classifies its operations into two reportable business segments: Leisure and Egencia.

Through the Leisure segment, Expedia provides range of travel and advertising services to its worldwide customers under
various brands such as Expedia.com, Hotels.com, Hotwire.com, Worldwide Travel Exchange (WWTE) and Interactive
Affiliate Network (IAN), Classic Vacations services, destination services, eLong and TripAdvi
								
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