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35-445: One of the pioneers of web-based disintermediation , Travelocity.com was the first website that allowed consumers the ability to purchase travel tickets without the help of a person. In addition to airfares, the site also permits consumers to book hotel rooms, rental cars, cruises and packaged vacations. American Airlines began offering customer access to its electronic reservation system, Sabre , in 1978 to travel agencies, and in

70-444: A business-to-consumer electronic commerce (B2C) company functions as the bridge between buyer and manufacturer. However manufacturers will still incur distribution costs, such as the physical transport of goods, packaging in small units, advertising, and customer helplines, some or all of which would previously have been borne by the intermediary. To illustrate, a typical B2C supply chain is composed of four or five entities. These are

105-922: A tender offer . Jones left the company shortly afterward, in May 2002. In March 2002, Travelocity acquired last minute travel specialist Site59.com . The CEO and founder of Site59, Michelle Peluso , joined Travelocity with the acquisition as senior vice president, product strategy and distribution. Peluso became Travelocity's COO in April 2003 and was then named president and chief executive officer of Travelocity in December 2003. Many members of Peluso's former management team at Site59 were appointed to senior management positions at Travelocity. In 2004, Travelocity introduced an advertising campaign known as " Where Is My Gnome? ". In 2005, Travelocity acquired lastminute.com for £577 million. The acquisition included allhotels.com, which

140-639: A $ 5,000 grant for a selected volunteer to participate in volunteer travel programs with various nonprofit organizations, including Habitat for Humanity , Globe Aware , and the American Hiking Society . In February 2016, Travelocity launched its Wander Wisely advertising campaign featuring the Roaming Gnome and "The Customer 1st Guarantee". The tagline was also changed from "Go and Smell the Roses" to "Wander Wisely". Travelocity had been

175-516: A class-action lawsuit in California accusing the company and its partners of violating trademark rights of numerous independent hotel and motel establishments by running advertising implying that consumers could book reservations for those hotels on Expedia even though Expedia had no relationship with those hotels, in violation of the Lanham Act , and also falsely noting that hotels with which

210-692: A longstanding sponsor of the American reality show The Amazing Race , sponsoring the series from the first season until season 34, when they were replaced by parent company Expedia. In July 2012, the United States Department of Transportation (DOT) fined Travelocity $ 180,000 after discovering that Travelocity's "flexible dates tool" did not always include fuel surcharges that were part of many international airfares, in violation of DOT rules requiring all carrier-imposed surcharges and fees to be included in every advertised fare. In addition,

245-564: Is an American travel technology company that owns and operates travel fare aggregators and travel metasearch engines , including Expedia , Hotels.com , Vrbo , Travelocity , Hotwire.com , Orbitz , Ebookers, CheapTickets , CarRentals.com, Expedia Cruises , Wotif , and Trivago . Over 3 million lodging facilities and flights on over 500 airlines are bookable on the company's websites. It has 16,500 employees, and its headquarters are located in Seattle , Washington . The word "Expedia"

280-899: Is becoming increasingly crowded. Notable examples of disintermediation include Dell and Apple, which sell many of their systems direct-to-consumer —thus bypassing traditional retail chains, having succeeded in creating brands well recognized by customers, profitable and with continuous growth. Tesla avoids using dealers as middlemen by offering their own outlets, which have only a few vehicles for display and test driving; customers complete their full purchase online. This approach allowed Tesla to raise auto gross profit by about 34%. This strategy also allows Tesla to control more of its customers' experience and build online community. Following Tesla's success, two other automotive brands, Audi and General Motors , decided to start trials of direct sales in 2012 and 2013 respectively. ' Notes Bibliography Expedia, Inc. Expedia Group, Inc.

315-524: Is derived from a combination of "exploration" and "speed". Founded as a division of Microsoft in October 1996, Expedia was spun off into a public company in 1999. IAC , known at the time as USA Networks Inc, acquired a controlling interest in the company in 2001 and acquired the remainder of the company in 2003. In August 2005, IAC spun off the company. In December 2011, Expedia, Inc. spun off TripAdvisor . In 2003, Rich Barton resigned as CEO and

350-413: The dot com boom . Retailers and wholesalers provide essential functions such as the extension of credit, aggregation of products from different suppliers, and processing of returns. In addition, shipping goods to and from the manufacturer can in many cases be far less efficient than shipping them to a store where the consumer can pick them up (if the consumer's trip to the store is ignored). In response to

385-432: The supplier , manufacturer , wholesaler , retailer and buyer . The term was originally applied to the banking industry in 1967; disintermediation occurred when consumers avoided the intermediation of banks by investing directly in securities (government and private bonds, insurance companies , hedge funds , mutual funds and stocks ) rather than leaving their money in savings accounts . The original cause

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420-496: The Chief Strategy Officer, Eric Hart, became acting CFO. In February 2020, Expedia announced it was cutting 3,000 jobs, roughly 12% of the workforce, citing a "disappointing 2019." Diller, in his role as acting CEO, stated the company had become "sclerotic and bloated" and that employees were "all life and no work." In April 2020, Peter Kern was appointed as CEO of Expedia Group. He was the highest paid CEO in

455-737: The DOT found that the customer was informed only on the final page before purchasing the ticket that some itineraries required a paper ticket with a minimum additional delivery fee of $ 29.95. In August 2012, Travelocity offered a $ 200 coupon code to attendees at the National Federation of the Blind annual conference in Dallas. After the NFB posted the code on Twitter without mentioning the attendee restriction, Travelocity re-tweeted it without noticing

490-463: The Internet modifies the supply chain due to market transparency . Disintermediation has acquired a new meaning with the advent of the virtual marketplace. The virtual marketplace sellers like Amazon are edging out the middlemen. Direct sellers and buyers connect with each other because of the platform created by the virtual marketplace vendor. There is quid pro quo for the vendor for the use of

525-661: The S&;P 500 in 2021, with $ 296 million in total compensation. In 2015, Expedia announced that it would move its headquarters to the Interbay neighborhood of Seattle , purchasing the Amgen campus on the Elliott Bay waterfront for $ 228.9 million and investing an additional $ 900 million on renovation and expansion of the 41-acre (17 ha) campus to 1.23 million square feet (114,000 m ). The first employees moved into

560-605: The company had no relationship were "sold out". In April 2021, the lawsuit was settled and the company promised not to engage in false advertising. In January 2011, Travelscape, a subsidiary of Expedia Inc. based in the Las Vegas Valley , was ordered to pay $ 6.3 million in back sales taxes to South Carolina by the South Carolina Supreme Court . Travelscape argued that South Carolina's efforts to tax online retailers located out-of-state violate

595-813: The departure of Sparks, Roshan Mendis, President of Travelocity was named to manage operations of Travelocity's operations in the Americas, while Matthew Crummack, CEO of lastminute.com was named to manage operations in Europe. In December 2014, Travelocity sold lastminute.com to Swiss-based Bravofly Rumbo for £76 million. In January 2015, Travelocity was sold by Sabre to Expedia, Inc. for $ 280 million. In November 2015, Travelocity hired Assembly in New York to handle US media. Until then, media had been handled by Publics Groupe's Zenith Media. In December 2015, Travelocity relaunched its Travel for Good program that offers

630-483: The e-commerce disintermediation concept, largely centered on the issues associated with the direct-to-consumers model. The high cost of shipping many small orders, massive customer service issues, and confronting the wrath of disintermediated retailers and supply channel partners all presented real obstacles. Huge resources are required to accommodate presales and postsales issues of individual consumers. Before disintermediation, supply chain middlemen acted as salespeople for

665-401: The error but deleted the tweet a day later. After some travel blogs and message boards re-posted the code, many ineligible travelers used the code. Travelocity responded by cancelling all trips of people that used the code who were not on the list of attendees at the NFB annual conference. This resulted in a barrage of complaints from customers. Disintermediation Disintermediation is

700-497: The idea in 1994 as an extension to their online travel database offering which had been distributed through Sabre, Bloomberg, AOL and many others. The founding team at Worldview joined with distribution partner Sabre in a 50-50 JV that resulted in the development and launch of Travelocity in 1995-1996. In 1996, Worldview's investors, Advance Publications and Ameritech , sold their stake in Travelocity to Sabre Corporation . It

735-421: The mid-1980s on CompuServe and GEnie to consumers under the "eAAsySabre" brand name. The CEO of eAAsySabre was Kathy Misunas. Under the "Saabre" brand, it was a popular feature of online services such as Prodigy and America Online in the early 1990s. Travelocity was created in 1995 as a joint venture between Worldview Systems Corporation and Sabre Corporation . The founding team at Worldview conceived of

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770-640: The new headquarters in October 2019. In 2021, Expedia built a new campus in DLF Cyber Park, Gurugram , India . In July 2015, Expedia made an investment in Wingz . In 2020, during the COVID-19 pandemic , customers complained regarding the process to get refunds for cancelled flights. Customers complained of excessively long call times and being unable to get through to a representative. This led to many lawsuits. On February 12, 2020, Expedia Group

805-496: The number of intermediaries between the supplier and the buyer. Disintermediation is also closely associated with the idea of just in time manufacturing , as the removal of the need for inventory removes one function of an intermediary. The existence of laws which discourage disintermediation has been cited as a reason for the poor economic performance of Japan and Germany in the 1990s. However, Internet-related disintermediation occurred less frequently than many expected during

840-503: The platform, else it would make no business sense to create such a platform. If the buyer, having connected with the seller, circumvents the platform and talks to the seller and does her deal directly with the seller, then the platform owner is unlikely to get her revenue share. This may be considered a new form of disintermediation. In the non-Internet world, disintermediation has been an important strategy for many big box retailers like Walmart , which attempt to reduce prices by reducing

875-402: The producers. Without them, the producer itself would have to handle procuring those customers. Selling online has its own associated costs: developing quality websites, maintaining product information, and marketing expenses all add up. Finally, limiting a product's availability to Internet channels forces the producer to compete with the rest of the Internet for customers' attention, a space that

910-495: The removal of intermediaries in economics from a supply chain , or "cutting out the middlemen" in connection with a transaction or a series of transactions. Instead of going through traditional distribution channels , which had some type of intermediary (such as a distributor , wholesaler , broker , or agent ), companies may now deal with customers directly, for example via the Internet . Disintermediation may decrease

945-437: The threat of disintermediation, some retailers have attempted to integrate a virtual presence and a physical presence in a strategy known as bricks and clicks . Reintermediation can be defined as the reintroduction of an intermediary between end users (consumers) and a producer. This term applies especially to instances in which disintermediation has occurred first. At the start of the Internet revolution, electronic commerce

980-476: The total cost of servicing customers and may allow the manufacturer to increase profit margins and/or reduce prices . Disintermediation initiated by consumers is often the result of high market transparency , in that buyers are aware of supply prices direct from the manufacturer. Buyers may choose to bypass the middlemen (wholesalers and retailers) to buy directly from the manufacturer, and pay less. Buyers can alternatively elect to purchase from wholesalers. Often,

1015-508: Was a U.S. government regulation ( Regulation Q ) which limited the interest rate paid on interest bearing accounts that were insured by the Federal Deposit Insurance Corporation . It was later applied more generally to "cutting out the middleman" in commerce, though the financial meaning remained predominant. Only in the late 1990s did it become widely popularized. It has been argued that

1050-489: Was founded in 1997 by Richard Irwin, acquired by Online Travel Corporation (OTC) in 2002 for £1.4 million, and later acquired by lastminute.com in 2004. In January 2009, CEO Michelle Peluso announced her resignation and was replaced by Sabre executive Hugh Jones . In April 2011, president and CEO Hugh Jones moved to a position at Sabre and Gilt Groupe president Carl Sparks was brought in as president and CEO of Travelocity. Sparks had been general manager of Hotels.com and

1085-553: Was included on a list of companies operating in West Bank settlements involved in activities that "raised particular human rights concerns" published by the United Nations Human Rights Council . The company was categorized under "the provision of services and utilities supporting the maintenance and existence of settlements". In August 2016, Buckeye Tree Lodge and Sequoia Village Inn, LLC filed

Travelocity - Misplaced Pages Continue

1120-493: Was previously chief marketing officer of Expedia . In December 2012, Travelocity sold Zuji to Webjet for $ 25 million. In June 2013, Travelocity Business, a corporate travel agency, was sold to Atlanta, Georgia -based BCD Travel . In August 2013, Expedia Inc. announced an agreement with Travelocity to power its United States and Canadian websites. In November 2013, Travelocity shut down its IgoUgo website. In May 2014, CEO Carl Sparks stepped down as CEO of Travelocity. After

1155-607: Was replaced by Erik Blachford. In December 2004, Dara Khosrowshahi was announced as CEO. In March 2017, Chelsea Clinton was named to the board of directors of Expedia, with compensation of $ 45,000 a year in cash, plus $ 250,000 a year in stock vesting over three years. In August 2017, Mark Okerstrom became the President and CEO of Expedia, Inc. In December 2019, Mark Okerstrom and Alan Pickerill resigned as CEO and CFO, respectively. At that time, Expedia Group's chairman, Barry Diller, took over day-to-day operations, while

1190-455: Was run by long-time Sabre information technology executive Terry Jones . Travelocity gained popularity after a 1999 partnership with AOL . In 2000, Sabre negotiated a merger of Travelocity with Preview Travel. The resulting company was listed on the NASDAQ stock exchange , with Sabre owning around 70% of the company. In March 2002, Sabre reacquired all outstanding shares of the brand via

1225-499: Was seen as a tool of disintermediation for cutting operating costs. The concept was that by allowing consumers to purchase products directly from producers via the Internet, the product delivery chain would be drastically shortened, thereby "disintermediating" the standard supply model middlemen. However, what largely happened was that new intermediaries appeared in the digital landscape (e.g.,  Amazon.com and eBay ). Reintermediation occurred due to many new problems associated with

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