Expedia Inc. is in the process of transitioning Expedia brands to a new global technology platform, a move that the CEO says may pressure margins and is a risk.
The company reported its first quarter 2011 earningsyesterday, and saw its operating income diminished because of higher expenses associated with technology investments and international expansion.
“We will be surprised if it doesn’t work,” said Dara Khosrowshahi, president and CEO, referring to implementation of the new tech platform. “It is a risk we’re taking, but we’re very confident in 1) the patterns that we’re seeing based on our experience with Hotels.comand 2) based on the Expedia team’s ability to deliver.”
Hotels.com last year transitioned to a new tech platform, a project internally dubbed 1H, and in the first quarter of 2011 Hotels.com saw its gross bookings rise 39%, more than triple the growth pace of the year-earlier period.
Read the full story at: http://www.tnooz.com/2011/04/29/news/expedia-takes-risk-and-bets-on-new-technology-platform/
