
| by: | Aug 1, 2001 |
Expedia addresses one of the largest and most attractive markets online: travel products and services with no physical delivery of goods required. Yet Expedia has stumbled upon significant challenges of late, not only from other travel We sites but also major airlines seizing the majority of online ticket sales through their own sites; beefed up flight selections and online customer-loyalty programs now compete with Expedia to garner customer attention.
Expedia recently turned to LA-based agency Deutsch to shape an effective campaign touting the benefits of its Web site, one that offers package tours, cruises and hotel rooms as well as complete travel itineraries for small-business travelers.
"Being a travel website, Expedia obviously has major competition on the horizon," explains Karen Costello, VP and associate creative director at Deutsch. "In essence, we decided to capitalize on the benefits of their site to connect directly with the consumer. It's a well designed and approachable site so it was important to show people using it."
Shot by Chuck & Clay of Crossroads, the two spots utilize comedic moments of terror neatly sidestepped by simple clicks on the Expedia site.
"House Party" opens on two parents booking the perfect vacation with no kids, no house and no worries. All is of angelic proportions until the father envisions his teenage son left in a Rococo-induced shindig, transporting us to a home with buxom broads and broken furniture. In the blink of an eye, he updates his online flight request to include his party-minded son. "Business Trip" features a young woman booking a business flight to Cleveland. When a co-worker points out that she is traveling alongside the company's obnoxious schmoozer Cooper, she quickly sorts the trip to find the shortest flight possible.
The witty campaign displays how Expedia locates the trip individual consumers are seeking. It should also assist Expedia's rise in the online travel business, one that surpassed $1 billion in spending earlier this year representing a 29 per cent increase over six months.
"The online travel industry as a whole has been consistently growing," explains Suzi Levine, marketing director of Expedia. "It is estimated to grow to $40 billion by the year 2004, so Expedia has capitalized on the benefits [of its site] by recognizing that 'right' is different for each individual; right for you may be the lowest price, whereas for me it may be a shorter flight as demonstrated in the Cooper spot."
Expedia began business in 1994 and is currently the 7th largest agency both on- and off-line in the US, averaging $2.7 Billion in annual sales. It is also one of the top 5 e-commerce businesses. In terms of its business model, Expedia reported its first profitable quarter in March 2001 with 4 million dollars in cash earnings.
"We've reached anything from 7 to 8 million unique visitors on a monthly basis and that's put us in the lead spot from a traffic perspective," continues Levine.

