Expedia is adopting an approach that is less aggressive to their marketing spend for the United Kingdom in their response to the current climate of the economy, and they are looking to have new market growth in continental Europe. Dara Khosrowshahi, the Chief Executive Officer of the company, told analysts that the market in the United Kingdom continues to display weaknesses, and they do not want to aggressively spend into an environment that is weaker. He stated that the United Kingdom makes up nearly one-third of their business in Europe, and they make more profit there than in other territories. The markets that are more mature, like the United Kingdom and the United States, where they have a strong presence, he continued, the higher their margins of profit are due to the fact that the higher percentage of their traffic is from travelers who go directly to their site. He also said that since they are looking to increase their market growth in continental Europe, the United Kingdom portion of their overall business will become smaller.

Venere is a major part of the company’s plans in their growth throughout Europe, as well as in building an agency channel for hotels. Mr. Khosrowshahi admitted that they paid the full price for the VC-owned Venere during an auction, and their main business line is in accommodations. Whether by agency or merchants, he continued, they desire to be a main player, and Venere has given them that chance. The deal with Venere is expected to close during the 3rd quarter, as details are still being worked out.

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