Travelocity has signed a deal with rival Expedia in which Expedia will operate its US and Canadian websites.
The two companies, who have been rivals for 15 years, have entered a long-term agreement under which Expedia will handle most of Travelocity’s online business and give it a more powerful search tool.
The deal will free up Travelocity to focus on marketing and brand loyalty to drive customers to its website.
Announcing the partnership, Travelocity chief executive Carl Sparks admitted that it had fallen behind its rivals on search capabilities as the online travel sector has become more competitive.
Travelocity is owned by Sabre Holdings Corp which also owns lastminute.com.
The deal does not include lastminute.com in Europe or the Travelocity Partner Network.
Expedia chief executive Dara Khosrowshahi, said: “Over the years, Travelocity has become one of the most recognised travel brands in the US and Canada.
"Going forward, this agreement will enable Travelocity to focus on further building its brand while at the same time providing consumers with an enhanced suite of travel products and services."
