It’s all about the brand: Travelocity’s gnome packs up to double down with Expedia [ANALYSIS]
Travelocity thought long and hard about how it could best compete against rivals. Rather than compete head-to-head, the thinking became: what if Travelocity was merely a marketing brand, and eliminated all, or most, operating costs from the balance sheet?
Travelocity’s gnome long ago reached cult status – do a simple search online, and thousands of gnome-tastic images appear. But can the power of the brand be strong enough to eliminate all technological competitive advantage in the OTA space?
The world will know soon enough: Travelocity has inked a “strategic marketing agreement” with Expedia, an agreement that packs up North American internal operations in favor of a complete brand focus backed up by Expedia’s technology.
Travelocity’s owner, Sabre Holdings, already has a robust GDS that is one of the systems used by Expedia to supply inventory to its own results.