Orbitz

Orbitz is an online travel booking and fare-comparison brand headquartered in Chicago, Illinois. Its consumer website, Orbitz.com, allows travelers to search and reserve flights, hotels, rental cars, vacation packages, cruises, and other travel-related products. The brand is best known as one of the early large-scale online travel agencies created through cooperation among major U.S. airlines and technology partners. Orbitz was incorporated in 2000 and began beta testing in February 2001. The public website launched in June 2001, at a time when airline-owned online distribution was attracting intense attention from consumers, regulators, and competitors. Nielsen reported that the launch was among the largest e-commerce launches to that point. Orbitz combined airline fare content with hotel, car-rental, and package inventory, presenting travelers with a single online search and booking interface rather than requiring them to visit multiple airline or supplier websites. The company’s creation generated antitrust scrutiny because its founding airline participants collectively controlled a substantial share of U.S. air travel. The U.S. Department of Transportation concluded that the launch did not create an antitrust problem, and the Department of Justice stated in 2003 that it found no evidence that Orbitz operated as a cartel or engaged in price fixing. The brand nevertheless became a recurring participant in disputes over fare distribution, access to airline inventory, supplier control, and the economics of online travel intermediaries. Orbitz became a public company in December 2003, with its airline shareholders retaining a majority of the stock and most voting power after the offering. In 2004, Cendant acquired Orbitz for approximately $1.25 billion. Orbitz subsequently became part of Cendant’s Travel Distribution Services business, which was later acquired by The Blackstone Group and operated under the Travelport structure. Orbitz Worldwide returned to the public markets in 2007, while Travelport retained a significant ownership stake after the offering. Expedia announced an agreement to acquire Orbitz in February 2015 for approximately $1.6 billion in cash. The transaction expanded Expedia’s portfolio of online travel brands and strengthened its competitive position against Priceline Group, now Booking Holdings. Following the acquisition, Orbitz continued as a consumer-facing brand within Expedia Group rather than operating as an independent listed company. Orbitz’s commercial positioning has centered on convenience, comparison, packaged travel, and loyalty benefits for leisure travelers. Its Orbitz Rewards program has provided member-oriented benefits and incentives connected with eligible bookings. The platform has also supported business travel through Orbitz for Business, including the distribution of Southwest Airlines fares on that service beginning in 2008. Behind the consumer interface, Orbitz used a mixture of commercial and open-source technologies, including ITA Software’s QPX airfare-shopping technology and a distributed Java-based application environment. The brand has faced legal and regulatory controversy over airline distribution, third-party post-transaction marketing, ticket availability, and hidden-city-ticketing services. These matters helped illustrate the broader tensions between online travel agencies, airlines, loyalty and ancillary-revenue strategies, and consumer-protection expectations. Orbitz remains an Expedia Group travel brand, although its corporate ownership, technology infrastructure, market role, and product presentation have changed substantially since its independent-company period.

Orbitz was established in 2000 as an airline-backed online travel initiative. Its creation reflected the rapid growth of internet commerce and the airlines’ interest in selling tickets directly or through a controlled electronic marketplace. The founding participants included several major U.S. airlines, giving the project immediate access to extensive air-fare inventory but also raising questions about whether the owners could disadvantage competing airlines or influence fare distribution. Orbitz began beta testing in February 2001 and launched Orbitz.com in June of that year. The website combined airfare search with booking functionality and later expanded into hotels, rental cars, vacation packages, and other travel products. Its launch was regarded as unusually significant for e-commerce because it introduced a high-volume, multi-airline travel marketplace at a time when consumers were rapidly moving travel research and purchasing online. The U.S. Department of Transportation reviewed the project and identified no antitrust barrier to its launch. The Department of Justice later stated that it found no evidence that Orbitz was a cartel or that its airline owners had fixed prices. The company pursued public-market financing as the online travel sector developed. Orbitz filed for an initial public offering in 2003 and began trading after its December 18 offering. Despite the public listing, the airline owners retained substantial economic and voting influence. In September 2004, Cendant agreed to acquire Orbitz, and the transaction was completed later that year. Orbitz became part of Cendant’s travel distribution activities, alongside businesses involved in reservation technology, travel agency distribution, and wholesale travel. In 2006, The Blackstone Group acquired Travelport, Cendant’s travel distribution-services business. The Travelport portfolio included Orbitz’s consumer reservation website, the Galileo global distribution system, Gulliver’s Travels, and related software and travel businesses. Orbitz Worldwide later pursued another public offering. Trading began in July 2007, with Travelport retaining approximately 48 percent of Orbitz Worldwide after the transaction. During this period Orbitz operated both as a consumer online travel brand and as part of a larger travel-technology and distribution structure. Orbitz’s history also includes repeated conflicts over the control and economics of travel distribution. Southwest Airlines sued Orbitz in 2001, alleging trademark infringement and false advertising in connection with the presentation of fares. Southwest later withdrew its fares from the industry fare-distribution channel used by Orbitz and removed itself from other online travel outlets for a period. Orbitz for Business subsequently became one of the early online travel agencies to offer Southwest flights in 2008. In 2010, American Airlines temporarily withdrew its fares from Orbitz during a dispute over American’s Direct Connect system. American promoted Direct Connect as a way to gain more control over distribution, reduce global-distribution-system costs, and sell ancillary products. An Illinois court ordered American to restore the availability of its fares and schedules through Orbitz. The brand encountered consumer-protection controversy as well. In 2009, reporting and congressional scrutiny focused on post-purchase marketing arrangements involving Webloyalty and related membership programs. The concern was that customers could be presented with third-party offers after completing an Orbitz transaction and later discover recurring monthly charges. Orbitz’s terms permitted certain forms of customer-information sharing with third parties, but the practice generated criticism because some consumers did not understand that they had joined a paid service. Another 2009 legal dispute, Milgram v. Orbitz, concerned tickets for a Bruce Springsteen concert that were alleged to have been offered despite not being available. The court ruled for Orbitz on summary judgment, concluding that the federal Communications Decency Act shielded the company from the relevant state-law claims. In 2014, Orbitz and United Airlines sued the founder of Skiplagged, a website that promoted hidden-city ticketing. The plaintiffs argued that the practice violated airline contract rules and interfered with industry relationships; the litigation was dismissed. Expedia announced its acquisition of Orbitz in February 2015, shortly after agreeing to purchase Travelocity. The approximately $1.6 billion cash transaction placed Orbitz within Expedia Group and ended its role as an independent public company. Orbitz continued as a recognizable consumer travel brand, while its technology and commercial operations became increasingly connected with Expedia’s wider platform. The brand’s long-term role has remained that of a leisure-oriented online travel agency and travel metasearch service offering integrated comparison and booking across major travel categories.

• 2015

  Expedia announces Orbitz acquisition

  [1]Orbitzen.wikipedia.org

  Expedia agrees to acquire Orbitz for approximately $1.6 billion in cash.

• 2008

  Southwest fares become available through Orbitz for Business

  [1]Orbitzen.wikipedia.org

  Orbitz for Business begins offering Southwest Airlines flights after years of distribution conflict.

• 2007

  Orbitz Worldwide returns to public markets

  [1]Orbitzen.wikipedia.org

  Orbitz Worldwide begins trading after an IPO, with Travelport retaining approximately 48 percent of the company.

• 2006

  Travelport becomes the ownership platform

  [1]Orbitzen.wikipedia.org

  The Blackstone Group acquires Cendant’s Travel Distribution Services business, including Orbitz and Galileo.

• 2004

  Acquisition by Cendant

  [1]Orbitzen.wikipedia.org

  Cendant acquires Orbitz for approximately $1.25 billion.

• 2003

  Initial public offering

  [1]Orbitzen.wikipedia.org

  Orbitz completes its initial public offering in December, while its airline owners retain significant voting control.

• 2001

  Beta testing and public launch

  [1]Orbitzen.wikipedia.org

  Orbitz begins beta testing in February and officially launches Orbitz.com in June.

• 2000

  Orbitz is incorporated

  [1]Orbitzen.wikipedia.org

  The online travel company is incorporated as an airline-backed internet booking initiative.

A consumer-oriented online travel agency and fare-comparison platform focused primarily on leisure travel, with integrated search and booking across flights, lodging, car rental, and vacation packages.

• Online travel agency and metasearch · 2001

  Orbitz.com

  Orbitz.com is the brand’s principal consumer platform. It allows users to compare and book air travel, hotels, rental cars, vacation packages, and other travel products. Its core proposition is the aggregation of travel inventory into one search and transaction experience, reducing the need for consumers to visit numerous supplier websites. The service has operated within Expedia Group’s broader online travel portfolio since the 2015 acquisition.

• Travel loyalty program

  Orbitz Rewards

  Orbitz Rewards is the brand’s customer-loyalty offering. It is designed to encourage repeat bookings by providing member-oriented benefits associated with eligible travel purchases. The program supports Orbitz’s positioning as a consumer travel platform rather than only a one-time fare-search website.

• Business travel booking

  Orbitz for Business

  Orbitz for Business extends the Orbitz booking model to corporate and managed-travel users. It provides business-oriented booking and travel-management capabilities and became notable for offering Southwest Airlines flights on its platform in 2008, making Orbitz for Business an early online agency channel for that carrier.

• 2019

  Expedia and Orbitz reach Pennsylvania data breach settlement

  Pennsylvania's attorney general reached a settlement with Expedia and Orbitz following an investigation into a 2018 data breach. The settlement requires the companies to pay $110,000, including an $80,000 civil penalty. The filing alleges that Orbitz misrepresented safeguards in its privacy policy and failed to fully implement Expedia data-security policies.

  Source

• 2009

  Webloyalty post-transaction marketing controversy

  Orbitz was criticized after reports and a Senate Commerce Committee inquiry examined post-purchase offers that connected customers with third-party membership programs. Some users reported recurring monthly charges after accepting or unintentionally joining these services. The controversy focused on disclosure, consent, payment-card data sharing, and the responsibilities of online merchants that present such offers.

  Source

• 2009

  Milgram v. Orbitz ticket-availability dispute

  New Jersey alleged that Orbitz violated state consumer-protection law by listing Bruce Springsteen concert tickets that were not actually available. The court granted summary judgment for Orbitz, finding that Section 230 of the Communications Decency Act preempted the asserted state-law claims.

  Source

Read more

• 2015

  Join Expedia GroupM&A

  Background

  Expedia sought to broaden its portfolio of online travel brands and compete more effectively with Priceline Group and other large travel platforms.

  Action taken

  Expedia announced a cash agreement to acquire Orbitz for approximately $1.6 billion.

  Aftermath

  Orbitz ceased to operate as an independent listed company and continued as a brand within Expedia Group.

  Acquisition value. $1.6 billion (2015)

  Source

• 2004

  Accept Cendant acquisitionM&A

  Background

  Cendant sought to expand its travel-distribution and reservation businesses through ownership of a major online travel brand.

  Action taken

  Cendant acquired Orbitz for approximately $1.25 billion.

  Aftermath

  Orbitz became part of a broader travel-distribution group and later moved through the Travelport ownership structure.

  Acquisition value. $1.25 billion (2004)

  Source

• 2003

  Complete the initial public offeringOther

  Background

  Orbitz required capital and a public-market structure as the online travel sector expanded.

  Action taken

  The company completed its IPO and began public trading in December.

  Aftermath

  The airline owners retained majority economic ownership and more than 90 percent of voting power immediately after the offering.

  Source

• 2001

  Launch a multi-airline online booking marketplaceProduct launch

  Background

  The airline-backed company sought to move fare search and ticket purchasing onto the internet while combining inventory from multiple carriers.

  Action taken

  Orbitz began beta testing in February and launched Orbitz.com publicly in June.

  Aftermath

  The launch quickly made Orbitz a major online travel intermediary and triggered antitrust and distribution scrutiny.

  Source

• Unconfirmed

  Reported2019.12.16

  Expedia and Orbitz reach Pennsylvania data breach settlement[3]Expedia and Orbitz reach Pennsylvania data breach settlementinfosecurity-magazine.com

  Pennsylvania's attorney general reached a settlement with Expedia and Orbitz following an investigation into a 2018 data breach. The settlement requires the companies to pay $110,000, including an $80,000 civil penalty. The filing alleges that Orbitz misrepresented safeguards in its privacy policy and failed to fully implement Expedia data-security policies.

Read more

1. 1Orbitzen.wikipedia.org
2. 2Orbitz official websiteorbitz.com
3. 3Expedia and Orbitz reach Pennsylvania data breach settlementinfosecurity-magazine.com