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Travelocity
Travelocity
Travelocity
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Travelocity is an online travel agency owned by the American travel group Expedia Group. One of the pioneers of web-based disintermediation, Travelocity was the first website that allowed consumers the ability to purchase travel tickets without the help of a person.[1] In addition to airfares, the site also permits consumers to book hotel rooms, rental cars, cruises and packaged vacations.[2]

Key Information

History

[edit]

Early history

[edit]

Travelocity has origins to 1978 when American Airlines began offering travel agencies access to its electronic reservation system known as Sabre. In the mid-1980s, began offering it to consumers under the eAAsySabre brand name on both CompuServe and GEnie.[3][4] The CEO of eAAsySabre was Kathy Misunas.[2] Under the "Saabre" brand, it was a popular feature of online services such as Prodigy and America Online in the early 1990s.[5]

Travelocity was officially created in 1995 as a joint venture between Worldview Systems Corporation and Sabre Corporation. The founding team at Worldview conceived of 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.[citation needed] In 1996, Worldview's investors, Advance Publications and Ameritech, sold their stake in Travelocity to Sabre Corporation. It was run by long-time Sabre information technology executive Terry Jones.[1]

Travelocity gained popularity after a 1999 partnership with AOL.[6] In 2000, Sabre negotiated a merger of Travelocity with Preview Travel.[7] The resulting company was listed on the NASDAQ stock exchange, with Sabre owning around 70% of the company.[7]

In March 2002, Sabre reacquired all outstanding shares of the brand via a tender offer.[8] Jones left the company shortly afterward, in May 2002.[9] It also acquired last minute travel specialist Site59.com the same year.[10] 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.[2] Many members of Peluso's former management team at Site59 were appointed to senior management positions at Travelocity.[11]

In 2004, Travelocity introduced an advertising campaign known as "Where Is My Gnome?".[12] In 2005, Travelocity acquired lastminute.com for £577 million.[13] The acquisition included allhotels.com, which was founded in 1997 by Richard Irwin, acquired by Online Travel Corporation (OTC) in 2002 for £1.4 million,[14] and later acquired by lastminute.com in 2004.[15]

In January 2009, CEO Michelle Peluso announced her resignation and was replaced by Sabre executive Hugh Jones.[16] 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 was previously chief marketing officer of Expedia.[17]

In December 2012, Travelocity sold Zuji to Webjet for $25 million.[18] In June 2013, Travelocity Business, a corporate travel agency, was sold to Atlanta, Georgia-based BCD Travel.[19] In August 2013, Expedia Inc. announced an agreement with Travelocity to power its United States and Canadian websites.[20] In November 2013, Travelocity shut down its IgoUgo website.[21]

In May 2014, CEO Carl Sparks stepped down as CEO of Travelocity.[22] After 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.[23]

2015 to present; Ownership by Expedia

[edit]

In January 2015, Sabre sold Travelocity to Expedia, Inc. for $280 million.[24][25][26][27] The same year, it hired Assembly in New York to handle US media. Until then, media had been handled by Publics Groupe's Zenith Media.[28] It also relaunched its Travel for Good program that offers 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.[29]

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".[30] It has also been 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.[31][32]

Controversies

[edit]

Drop pricing; exclusion of surcharges

[edit]

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, 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.[33]

Cancellation of trips booked with promo code

[edit]

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 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.[34] 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.[35]

References

[edit]
[edit]
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Travelocity

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Travelocity is an online that provides booking services for flights, hotels, car rentals, packages, and cruises, serving as a pioneer in web-based travel reservations since its launch on March 12, 1996, in the Dallas-Fort Worth area of . Originally formed as a between and Worldview Systems Corporation, the company quickly grew by offering real-time access to travel and , registering 140,000 users within its first 90 days and reaching over 20 million users by 2006. Headquartered in Southlake, Texas, Travelocity expanded through strategic acquisitions. In 2002, Sabre acquired full ownership by buying out Preview Travel's stake, solidifying its control until 2015, when Expedia Inc. purchased Travelocity for $280 million in cash, integrating it into the Expedia Group portfolio. Today, as part of Expedia Group, Travelocity emphasizes customer guarantees like price matching, free cancellations, and 24/7 support under its "Wander Wisely" slogan. A key element of Travelocity's branding is its mascot, the Roaming Gnome, introduced in 2004 through an advertising campaign that humorously depicted the garden gnome "stolen" and traveling to exotic destinations to promote affordable adventures. This campaign, inspired by global traveling gnome pranks, helped differentiate Travelocity in a competitive market alongside rivals like Expedia and Orbitz, while the platform continues to innovate with mobile apps and bundled travel deals.

Company Overview

Profile and Ownership

Travelocity is an online travel agency (OTA) that operates as a of , following its acquisition by the company in January 2015 for $280 million in cash from . Founded in 1996 as one of the earliest OTAs, Travelocity pioneered web-based in the travel industry by enabling direct consumer access to bookings, bypassing traditional intermediaries like travel agents. Within the Expedia Group portfolio, Travelocity functions as a distinct brand focused on leisure travel, integrated through shared technology platforms and loyalty programs with sister brands such as Expedia.com and Orbitz. This integration allows for unified customer rewards and backend support while maintaining Travelocity's independent branding and user interface. Its origins trace back to a joint venture involving Sabre Corporation, a major provider of travel reservation systems. Travelocity's relies on commission-based generated from facilitating bookings for flights, hotels, car rentals, and vacation packages, without owning or holding any travel inventory itself. This asset-light approach emphasizes partnerships with suppliers and advertisers to drive earnings through transaction fees and promotional placements.

Headquarters and Leadership

As a brand within Expedia Group, Travelocity does not maintain a separate headquarters; its operations are integrated into Expedia Group's headquarters in Seattle, Washington. This structure supports Travelocity's brand-specific activities while leveraging Expedia Group's centralized resources for efficiency. Since its acquisition by Expedia Group in 2015, Travelocity has operated without an independent CEO, instead falling under the oversight of Expedia Group's senior executives. The current leadership is headed by Ariane Gorin, who serves as Chief Executive Officer of Expedia Group and provides strategic direction for all brands, including Travelocity. Historical figures such as founder Terry Jones, who led as CEO in Travelocity's early years, are noted only for their foundational role but do not influence current governance. As a within , Travelocity integrates into the parent company's technology and ecosystem, sharing resources such as call centers, , and data analytics platforms to streamline operations. This structure enables Travelocity to focus on its core online travel booking services while benefiting from Expedia's global scale and technological advancements. Travelocity's workforce is fully integrated into Expedia Group's approximately 16,500 employees as of December 2024, with integrated teams contributing to developments in mobile apps, personalized recommendations, and AI-driven travel planning, aligning with 's emphasis on across its portfolio.

Services and Features

Core Travel Bookings

Travelocity's core travel booking services encompass a range of essential offerings designed to facilitate comprehensive trip planning for users. These include airline tickets, allowing customers to search and reserve flights from major carriers worldwide; hotel reservations, providing access to accommodations in various destinations; car rentals, enabling vehicle bookings at airports and city locations; cruise bookings, featuring itineraries from select cruise lines; and vacation packages, which bundle flights, hotels, and sometimes car rentals or activities for cost savings. The booking process is primarily conducted through the online platform at travelocity.com, where users utilize intuitive search tools to compare options and view real-time pricing based on availability and demand. The platform supports flexible filters for dates, destinations, and preferences, streamlining the selection of flights, hotels, cars, cruises, or packages. Integration with the allows users to manage itineraries, receive real-time flight alerts, and access offline details, enhancing convenience during . Additionally, 24/7 is available via phone, chat, and virtual agents to assist with bookings and modifications before, during, or after trips. Travelocity primarily targets travelers who prioritize bundled deals to maximize value on s, rather than or specialized corporate travel. Its global coverage supports this audience by offering access to over airlines for flights and more than properties (including hotels) worldwide, ensuring options for international and domestic itineraries. This extensive network facilitates bundled packages that combine multiple services for destinations worldwide. Travelocity operates on a commission-based , earning fees from suppliers such as airlines, hotels, companies, and cruise operators for each successful booking facilitated through its platform. Unlike direct providers, Travelocity does not own inventory, instead acting as an that connects consumers with supplier availability without purchasing or holding stock. This structure allows for scalable operations focused on distribution and . The Price Match supports these core bookings by promising refunds for lower prices found elsewhere within specified timeframes.

Unique Programs and Guarantees

Travelocity offers a Price Match as part of its Customer1st , allowing customers to receive a refund for the difference if a lower price is found on the same itinerary through any U.S.-based website. For flights, cars, and cruises, claims must be made within 24 hours of booking; for hotels and vacation packages, within 24 hours of . This applies to flights, hotels, cars, cruises, and vacation packages, with the refund issued as a toward future or, in some cases, cash. Complementing this, Travelocity provides Free Changes and Cancellations on select bookings, waiving fees for modifications or cancellations under certain conditions, particularly for hotels where no cancellation fee is charged by Travelocity itself (though supplier policies may apply). This policy, which includes no platform fees for hotel cancellations, was expanded during the starting in 2020 to enable flexible adjustments for affected travel without penalties from the platform. As of 2025, Travelocity continues to offer free cancellations on hotels regardless of supplier requirements in many cases. The Travel for Good program, relaunched in 2015 and active through at least 2021, promoted sustainable and impactful travel by awarding for "voluntourism" experiences, including dream trips to volunteers and $10,000 donations to selected non-profits. It encouraged travelers to contribute through bookings, with initiatives like donating $2 per app booking to UNICEF's vaccination efforts in 2021 as part of efforts, supporting global health and recovery. No recent activity has been reported as of 2025, and the program focused on giving back via partnerships that aligned with environmental and social . Travelocity's loyalty elements provide basic rewards for repeat users through free membership perks such as discounts on select hotels and exclusive deals. Integrated into Group's unified One Key program since 2022, these rewards allow earning and redeeming points across brands for flights, stays, and activities, enhancing value for frequent travelers (though Travelocity-specific loyalty was limited prior to integration).

History

Founding and Early Expansion

Travelocity's origins trace back to the reservation system, developed by in collaboration with , with the concept originating in 1953 and becoming fully operational in 1964 to automate seat reservations. The system's expansion accelerated following the of 1978, which spurred greater competition and demand for efficient booking tools, leading to over 130,000 terminals worldwide by the late 1970s. In the mid-1990s, leveraging Sabre's infrastructure, , a former at Sabre Inc., led the development of a consumer-facing online platform. Travelocity launched on March 12, 1996, as a between Sabre Interactive—a division of Sabre Group Holdings—and Worldview Systems Corp., marking one of the earliest web-based travel booking services. As an early innovator in online travel, Travelocity enabled the first fully web-based airline ticket purchases, building on precursors like the easySabre dial-up service from the 1980s to provide direct consumer access without intermediaries. This breakthrough positioned Travelocity as a pioneer in electronic commerce for travel, allowing users to search, book, and purchase flights, hotels, and car rentals through an intuitive interface powered by Sabre's global distribution system. The platform quickly gained traction amid the dot-com boom, achieving rapid user adoption. Key early milestones included a 1999 partnership with , which designated Travelocity as the exclusive reservations engine for AOL's portals, including AOL.com and , significantly boosting distribution and visibility. In 2000, Travelocity merged with Preview Travel, another online travel site, to form Travelocity.com, a move that combined their technologies and user bases under Sabre's majority ownership and enhanced . By early 2001, these efforts drove substantial growth, with Travelocity attracting 8.72 million unique visitors in January alone, securing an 18% and solidifying its leadership in the burgeoning online travel sector.

Key Acquisitions and Mergers

In 2002, Travelocity underwent significant consolidation under its parent company, Holdings. The company acquired Site59.com, a specialist in last-minute travel bookings, for $43 million in cash, enhancing its offerings in discounted air, hotel, and rental car inventory. This integration allowed Travelocity to operate Site59 as a distinct unit, broadening its focus on time-sensitive deals without disrupting core operations. Later that year, completed its full reacquisition of Travelocity by purchasing the remaining 30% stake from partners through a $420 million tender offer and short-form merger on April 11, 2002, making Travelocity a wholly owned indirect . By 2005, Travelocity pursued international expansion through the acquisition of lastminute.com, a prominent European online travel firm, for £577 million (approximately $1.03 billion). This deal, executed by Sabre Holdings via its Travelocity Europe subsidiary, significantly bolstered Travelocity's presence across Europe by combining lastminute.com's established market share in short-notice bookings with Travelocity's global infrastructure. The transaction, completed in July 2005, positioned the merged entity as Europe's largest online leisure travel company at the time. Travelocity's independence concluded in when acquired it from for $280 million in cash. This sale integrated Travelocity into Expedia's expansive portfolio of travel brands, following a prior strategic agreement between the two in 2013, and marked a shift toward consolidation in the online sector. The acquisition enabled Expedia to leverage Travelocity's customer base and loyalty programs while streamlining overlapping operations.

Marketing and Branding

Advertising Campaigns

Travelocity's advertising campaigns have long centered on building brand recognition through humor, relatability, and a focus on hassle-free experiences. The company's promotional efforts evolved from early viral stunts to integrated digital strategies, consistently leveraging its iconic to convey themes of adventure and reliability. These campaigns have been crafted by various creative agencies, emphasizing creative to differentiate Travelocity in the competitive online market. A cornerstone of Travelocity's branding is the Roaming Gnome mascot, introduced in 2004 as part of a campaign titled "Where Is My Gnome?" created by the agency McKinney. The two-foot-tall bearded gnome appears in humorous television and digital advertisements, often depicted traveling to exotic destinations while promoting worry-free bookings and spontaneous adventures. This character, inspired by the "traveling gnome" , quickly became a symbol of fun and accessibility, featuring in spots that highlight the ease of using Travelocity for flights, hotels, and packages. The Roaming Gnome has remained a fixture in campaigns through 2025, with recent TV airings underscoring its enduring appeal in encouraging consumers to "roam like the gnome." Travelocity has partnered with several advertising agencies to develop its campaigns. McKinney handled early creative work starting in 2003, including the Roaming Gnome launch. In 2015, Campbell Ewald became the creative agency of record, introducing the "Wander Wisely" theme in 2016, which positioned the brand as a wise travel companion offering features like 24/7 support and price guarantees. Proof Advertising took over as creative agency of record in 2019 following a review, producing the 2020 "Wish You Were Here" campaign that recast the Gnome as a savvy influencer inviting viewers to join global escapades. By 2021, Doner assumed the role, continuing to integrate the Gnome in promotions amid evolving market dynamics. Although Travelocity has not aired spots, its agency collaborations have focused on high-impact TV, online video, and experiential activations. Key campaigns have adapted to consumer needs, with the 2000s efforts under McKinney emphasizing lighthearted escapism through the Gnome's antics. The "Wander Wisely" initiative, launched in 2016 by Campbell Ewald, shifted focus to practical benefits like flexible cancellations and real-time advice, featuring short spots with the Gnome dispensing "wisdom" on travel mishaps. Post-pandemic from 2021 onward, this campaign evolved to highlight adaptable planning and safety features, such as enhanced cleaning filters and free changes, aligning with renewed traveler caution and a desire for reliable options. Proof's 2020 "Wish You Were Here" further amplified this by showcasing the Gnome in aspirational destinations, boosting engagement during recovery periods. In recent years, Travelocity has shifted toward digital advertising, integrating and influencer partnerships to foster . The "Gnational Gnomad" program, initiated in 2014 and scaled with tools like Traackr, engaged nearly 100 travel influencers to create authentic content, humanizing the brand and driving a 1200% increase in impressions. Initiatives such as 2018's Instagram contest promoting an AR Roaming Gnome filter encouraged shares among , while ongoing social activations tie the mascot to loyalty perks like the Customer 1st Guarantee. This digital emphasis has sustained the Gnome's relevance, blending traditional TV with interactive online experiences as of 2025.

Partnerships and Affiliates

Travelocity operates its affiliate program through the Expedia Partner Network, enabling travel agents, websites, and publishers to earn commissions on bookings referred to the platform. Commissions typically range from 2% to 6% depending on the product, such as 3% to 6% for bookings and 2% for car rentals, with a 45-day duration to track referrals. The company maintains extensive supplier integrations to provide broad inventory options, partnering with over 400 airlines for flight bookings and more than 1 million hotels worldwide, including major chains like Marriott. Travelocity also collaborates with leading cruise lines, offering exclusive deals and access to itineraries from providers such as Royal Caribbean. In recent developments, Travelocity benefits from Expedia Group's 2025 partnership with , which expanded flight access to the carrier's network of 117 destinations across 11 countries, available on all Expedia-owned platforms including Travelocity starting , 2025. Additionally, Travelocity has engaged in influencer collaborations managed through Traackr, building relationships with nearly 100 key travel influencers to enhance and . Travelocity's global expansions include European market ties stemming from its acquisition of for £577 million, which bolstered its presence in the region before the European arm's subsequent divestiture. These efforts are now integrated into Group's international framework, supporting broader distribution and localized offerings across multiple countries.

Controversies

Pricing and Regulatory Issues

In 2012, the U.S. (DOT) fined Travelocity $180,000 for engaging in a pricing practice that excluded mandatory fuel surcharges from the advertised fares for certain international flights, misleading consumers about the total cost. This violation occurred when users selected the option to view fares in local currencies on Travelocity's website, resulting in the display of base fares without the surcharges that were ultimately added during booking. The infraction contravened DOT's full-fare regulations under 14 CFR 399.84, which mandate the inclusion of all carrier-imposed surcharges and fees—such as costs—in every advertised price to ensure transparency and prevent deceptive practices. In response, Travelocity was required to cease the non-compliant and implement changes to display inclusive , thereby aligning with federal rules aimed at protecting expectations in online travel bookings. This enforcement action highlighted broader challenges in the online travel agency sector, where incomplete price disclosures can distort competition and erode trust; Travelocity's commitment to inclusive pricing post-fine contributed to elevated industry standards for fare transparency. In 2019, the DOT fined Travelocity another $180,000 for similar violations, this time for failing to include fuel surcharges and other fees in airfares advertised via its "flexible dates tool," as well as disclosing additional charges like paper ticket delivery fees only at the final purchase stage. The DOT ordered Travelocity to from further violations. Following 's acquisition of Travelocity in 2015 for $280 million, the brand remains subject to ongoing oversight within Expedia Group's comprehensive compliance framework.

Customer Service Challenges

One notable customer service incident occurred in when Travelocity offered a $200 discount promo code (NFB2012) exclusively to approximately 2,300 attendees of the National Federation of the Blind conference as part of an accessibility promotion. The code quickly spread across online forums and , leading non-attendees to book trips with it; Travelocity then canceled these ineligible bookings, issuing full refunds without cancellation fees to affected customers. This action sparked significant public outrage over perceived unfair treatment and lack of clear communication, prompting Travelocity to issue apologies via email and clarify the policy in public statements. Travelocity has consistently received complaints about delays in processing refunds for cancellations, especially those stemming from airline disruptions or external events. During the COVID-19 pandemic from 2020 to 2022, customers frequently reported poor communication and prolonged wait times for reimbursements on disrupted bookings, with some cases extending months despite airline-issued credits. For instance, in early 2022, an Atlanta resident battled Travelocity for nearly two years to obtain a refund for three canceled United Airlines tickets purchased through the platform, highlighting systemic bottlenecks in refund handling. As of November 2025, aggregated customer feedback reflects ongoing dissatisfaction, evidenced by a 1.2 out of 5 rating on ConsumerAffairs from 1,849 reviews, often citing unresponsive support and unresolved disputes. In response to such challenges, Travelocity has maintained 24/7 channels, including phone, chat, and virtual agents, alongside goodwill policies like fee waivers for certain cancellations and a price match to build trust. However, reviews indicate persistent gaps, with customers describing long hold times, inconsistent agent knowledge, and incomplete resolutions even after escalation. The company's integration into following its acquisition has centralized support systems across brands, which, while aiming for efficiency, has been criticized for occasionally prioritizing volume over personalized Travelocity-specific assistance, contributing to diluted service experiences.

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  73. https://www.transportation.gov/sites/dot.gov/files/docs/eo_2012-7-30.pdf
  74. https://skift.com/2012/07/29/travelocity-fined-by-dot-for-violating-full-fares-display-rule/
  75. https://www.nbcnews.com/id/wbna48358153
  76. https://thehill.com/policy/transportation/240777-travelocity-fined-for-violating-dot-airfare-advertising-rules/
  77. https://www.transportation.gov/briefing-room/dot-fines-travelocity-violating-dot-price-advertising-rule
  78. https://nypost.com/2012/08/09/short-sighted-web-site/
  79. https://www.atlantanewsfirst.com/2022/01/07/atlanta-woman-fights-months-refund-travelocity/
  80. https://www.consumeraffairs.com/travel/travelocity.html
  81. https://www.bbb.org/us/wa/seattle/profile/travel-agency/travelocitycom-1296-22024195/complaints
  82. https://www.washingtonpost.com/lifestyle/travel/expedia-acquired-travelocity-how-will-it-affect-you-the-traveler/2015/01/29/56ffe024-a57d-11e4-a7c2-03d37af98440_story.html
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