Expedia to provide key services for rival Travelocity

Travelocity and Expedia, two of the biggest online travel sites, will begin working together next year, with Expedia providing content, technology and customer service for its one-time rival.

Expedia will become the technological force behind Travelocity’s websites currently operating in the US and Canada, allow Travelocity to tap into its listings for hotels and flights, and handle its customer service.

Some industry watchers said that the arrangement amounted to an unofficial merger. But Travelocity, which will remain a separate entity owned by Sabre, insists that it will still go head to head with Expedia, despite their shared resources.

“We continue to compete with Expedia,” says Travelocity spokesman Joel Frey. “If you think about mergers and acquisitions, one brand takes the other one over and brand b goes away. Travelocity’s brand is not going away. Travelocity’s brand wil continue to live on and continue to be a great option for consumers to shop and book and think about their travel plans.”

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