By the start of 2015, Amazon.com, Inc. (NASDAQ:AMZN) will launch a new travel service using which, people will be able to book flights, buy luggage, reserve hotels, book flights and much more with just some clicks on Amazon.com, Inc. (NASDAQ:AMZN) website. Expedia Inc (NASDAQ:EXPE), being a leader in travel industry is clearly the potential competitor which is at threat from this service. In a program on CNBC, Dara Khosrowshahi, Expedia Inc. president & CEO said that travelling is a trillion dollar industry and his company is not worried about Amazon.com, Inc. (NASDAQ:AMZN)’s arrival in the lounge. He said that Amazon.com, Inc. (NASDAQ:AMZN)’s new service will create a competitive environment and increase the customer driven approach in the market place, which is always good for business.
Expedia Inc (NASDAQ:EXPE) CEO said that his company welcomes Amazon.com, Inc. (NASDAQ:AMZN) to the party. He rejected the idea that any company will try to lock up certain areas in order to seize the profits and customers. He said that Expedia has more than 300,000 hotels in its system on a global basis which are integrated with a central database for the ease of customers. He claimed that any company, which is stepping in the travel world, will have to do a lot of catching up to get to the size and scale of Expedia Inc (NASDAQ:EXPE).
Amazon.com, Inc. (NASDAQ:AMZN) will charge around 15% from hotels and other vendors who will host their products, travel services on its websites. Users will simple login the website and plan the travel package. They can search for different travel spots based on their location. Amazon.com, Inc. (NASDAQ:AMZN) will have to build its infrastructure for the new travel service to compete with the leaders.