About-to-be-acquired online travel company Expedia Inc. is bolstering its
European presence with a joint venture deal with SNCF Grandes Lignes in
France, the state-owned railways group.
Expedia said that as a result of the deal French
travelers will be able to book flights, hotels, rail and car rentals via an
enhanced SNCF site, which claims to be the top
online site for e-tourism in France and offers rail booking capabilities for
traveling through Europe.
Financial arrangements were not disclosed. Bellevue, Wash.-based Expedia will
contribute its technology, helping to bolster its foothold in Europe. It
already has localized services in the United Kingdom and Germany.
SNCF will own 53 percent of the joint venture through its subsidiary, GL
e-commerce, while Expedia has a 47 percent stake. Denis Wathier, managing
director at voyages-sncf.com, will serve as president of the venture.
“By adding valuable flight, lodging, and car rental services, the joint
venture will create a new competitor in the online travel industry,” said
Simon Breakwell, senior vice president, international at Expedia.
Expedia is being acquired by Barry Diller’s USA Networks Inc.
SNCF Grandes Lignes set up its subsidiary, GL e-Commerce, in June a year ago
to manage and develop its interactive business.