Hotwire.com
Encyclopedia
Hotwire is a discount travel website that offers low prices on airfare, hotel, rental cars, and vacation packages by selling off unsold travel inventory at discounted prices.
Headquartered in San Francisco, CA, Hotwire, Inc. is an operating company of Expedia, Inc.
. Expedia also operates Hotels.com
, ClassicVacations.com, and TripAdvisor.com.
, Northwest
, Continental
, America West (now US Airways
), and United
. They were funded by a leading private equity firm, Texas Pacific Group
(TPG) with an initial $75 million investment. Prior to its formal launch, it was codenamed Purple Demon.
In September 2003, IAC/InterActiveCorp
announced its acquisition of Hotwire.com for $663 million dollars. (Expedia spun off from IAC in 2005.) Hotwire's co-partners under IAC included Citysearch, Evite , HSN, Ticketmaster, LendingTree, RealEstate.com, Entertainment.com, and Match.com.
In 2007, J.D. Power and Associates Independent Travel Web Site Satisfaction StudySM recognized Hotwire for ranking "Highest in Customer Satisfaction for Independent Travel Web Sites" for the second year in a row. In 2009, they were given the 2008 award for the third time in a row.
Hotwire first launched with opaque
airline tickets. They started selling opaque hotel and rental cars a few months later. Package offerings started in 2003. In 2004, Hotwire began to offer select retail travel products. In June 2007, Hotwire removed all airfare booking fees.
is known as "opaque". According to the Hotwire web site, they deal with brand-name travel companies exclusively. This is so Hotwire partners can clear out their supply and sell inventory that would otherwise go unsold. Hotwire reveals the prices and the travel dates of all their products upfront and does not sell via a "bidding" or "auction" model.
. Expedia also operates Hotels.com
, ClassicVacations.com, and TripAdvisor
.
Hotwire's first CEO was Karl Peterson, one of Hotwire's four founding members. Since 2006, Hotwire has been overseen by Hotwire's 2004-2006 CFO Eric Grosse, another one of Hotwire's four founding members. Grosse is a graduate of Harvard Business School. In January 2009, Eric Grosse became the CEO/President of Expedia Worldwide and Clem Bason took over as President of the Hotwire Group.
Hotwire operates with one General Manager and six Vice Presidents on its management team. Hotwire began with 4 employees, and then grew to 80 within months. Currently, Hotwire has 210 employees.
Headquartered in San Francisco, CA, Hotwire, Inc. is an operating company of Expedia, Inc.
Expedia, Inc.
Expedia, Inc. is an American company headquartered in Bellevue, Washington that operates several travel brands including Expedia.com, Hotels.com, Hotwire.com, Egencia , TripAdvisor, Expedia Local Expert, Classic Vacations and eLong. Expedia, Inc.’s companies operate more than 90 branded points of...
. Expedia also operates Hotels.com
Hotels.com
Hotels.com is an operating company of Expedia, Inc. that provides reservation services for hotel rooms and other places to stay.The company was founded in Dallas, TX in 1991 as Hotel Reservations Network by Dave Litman and Bob Diener as a toll-free telephone service, offering consumers a one-stop...
, ClassicVacations.com, and TripAdvisor.com.
History
Hotwire was launched in 2000 by Eric Grosse, Karl Peterson, Gregg Brockway, and Spencer Rascoff and by six major airlines: AmericanAmerican Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, Northwest
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
, Continental
Continental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
, America West (now US Airways
US Airways
US Airways, Inc. is a major airline based in the U.S. city of Tempe, Arizona. The airline is an operating unit of US Airways Group and is the sixth largest airline by traffic and eighth largest by market value in the country....
), and United
United Airlines
United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees United Air Lines, Inc., is the world's largest airline with 86,852 employees (which includes the entire holding company United Continental...
. They were funded by a leading private equity firm, Texas Pacific Group
Texas Pacific Group
TPG Capital is one of the largest private equity investment firms globally, focused on leveraged buyout, growth capital and leveraged recapitalization investments in distressed companies and turnaround situations. TPG also manages investment funds specializing in growth capital, venture capital,...
(TPG) with an initial $75 million investment. Prior to its formal launch, it was codenamed Purple Demon.
In September 2003, IAC/InterActiveCorp
IAC/InterActiveCorp
InterActiveCorp is an American internet company with over 50 brands across 40 countries headquartered in New York City...
announced its acquisition of Hotwire.com for $663 million dollars. (Expedia spun off from IAC in 2005.) Hotwire's co-partners under IAC included Citysearch, Evite , HSN, Ticketmaster, LendingTree, RealEstate.com, Entertainment.com, and Match.com.
In 2007, J.D. Power and Associates Independent Travel Web Site Satisfaction StudySM recognized Hotwire for ranking "Highest in Customer Satisfaction for Independent Travel Web Sites" for the second year in a row. In 2009, they were given the 2008 award for the third time in a row.
Hotwire first launched with opaque
Opaque travel inventory
Opaque inventory is a term used to describe the market of selling unsold travel inventory at a discounted price. The inventory is called "opaque" because the specific supplier remain hidden until after the purchase has been completed...
airline tickets. They started selling opaque hotel and rental cars a few months later. Package offerings started in 2003. In 2004, Hotwire began to offer select retail travel products. In June 2007, Hotwire removed all airfare booking fees.
Method of operation
When hotel rooms, airline seats, or rental cars go unsold, travel companies use Hotwire to fill them. Hotwire does not identify the participating companies until after the purchaser has paid so as not to directly compete with regular retail sales of the travel partners. This sales modelContinuity sales model
A continuity program is a company’s sales offer where a buyer/consumer is agreeing to receive merchandise or services automatically at regular intervals , without advance notice, until they cancel.-How a Continuity Program Works:...
is known as "opaque". According to the Hotwire web site, they deal with brand-name travel companies exclusively. This is so Hotwire partners can clear out their supply and sell inventory that would otherwise go unsold. Hotwire reveals the prices and the travel dates of all their products upfront and does not sell via a "bidding" or "auction" model.
Management
Headquartered in San Francisco, CA, Hotwire, Inc. is an operating company of Expedia, Inc.Expedia, Inc.
Expedia, Inc. is an American company headquartered in Bellevue, Washington that operates several travel brands including Expedia.com, Hotels.com, Hotwire.com, Egencia , TripAdvisor, Expedia Local Expert, Classic Vacations and eLong. Expedia, Inc.’s companies operate more than 90 branded points of...
. Expedia also operates Hotels.com
Hotels.com
Hotels.com is an operating company of Expedia, Inc. that provides reservation services for hotel rooms and other places to stay.The company was founded in Dallas, TX in 1991 as Hotel Reservations Network by Dave Litman and Bob Diener as a toll-free telephone service, offering consumers a one-stop...
, ClassicVacations.com, and TripAdvisor
TripAdvisor
TripAdvisor.com is a travel website that assists customers in gathering travel information, posting reviews and opinions of travel-related content and engaging in interactive travel forums. It is part of the TripAdvisor Media Group, operated by Expedia, Inc. TripAdvisor is a pioneer of...
.
Hotwire's first CEO was Karl Peterson, one of Hotwire's four founding members. Since 2006, Hotwire has been overseen by Hotwire's 2004-2006 CFO Eric Grosse, another one of Hotwire's four founding members. Grosse is a graduate of Harvard Business School. In January 2009, Eric Grosse became the CEO/President of Expedia Worldwide and Clem Bason took over as President of the Hotwire Group.
Hotwire operates with one General Manager and six Vice Presidents on its management team. Hotwire began with 4 employees, and then grew to 80 within months. Currently, Hotwire has 210 employees.