Expedia tipped to make outright bid for Travelocity

Expedia may be poised to make an outright acquisition of Travelocity instead of the operational outsourcing agreement that currently exists.

Expedia may be poised to make an outright acquisition of Travelocity instead of the operational outsourcing agreement that currently exists.

Expedia has a 50% revenue share agreement with Sabre relating to Travelocity.

This follows Expedia having completed integration of Travelocity with its back-end systems and Sabre handling the sales and marketing aspect.

Expedia has certain options to acquire Sabre’s Travelocity for a fair market price under an agreement struck in 2013.

Sabre entered into the arrangement to cut its losses and expenses related to Travelocity.

Analyst Manish Hemrajani of Oppenheimer is reported as suggesting a deal could be imminent.

The analyst states that if an acquisition were to happen, it will be a positive development for both firms, according to US financial media outlet Benzinga.com.