Issue: Getting Along with Suppliers

The online travel agencies that formed Expedia had dreadful relations with hotel chains. How Expedia changed that is instructive

More than burgeoning Internet technologies helped online travel agencies rise to prominence in the early part of this decade. In the post-9/11 travel slump, hotels were looking for a place to unload their empty rooms at a great price. And it was in that environment that InterActive Corp. Chairman Barry Diller acquired Expedia.com, along with fellow travel discounters Hotels.com and Hotwire.

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