Consolidation appears to be the name of the game after Expedia pounced on Australian-based online travel company Wotif for a total cash consideration of A$703m.
Commentators said Wotif is a victim of large accommodation sites more aggressively colonising the Australian market with bigger resources and more sophisticated IT systems.
Wotif ‘s decreasing influence has been reflected in its share price over the past 12 months, which had roughly halved in response to softer earnings.
Wotif Group operates online travel brands in the Asia-Pacific region including, Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com, GoDo.com.au and Arnold Travel Technology.
The completion of the acquisition is subject to approval by the shareholders of Wotif.com Holdings Limited but is expected to close during the fourth quarter of 2014.
