Expedia drops Travelscape retail name

Kevin Ferguson

Monday, Aug. 27, 2001 | 11:08 a.m.

Expedia Inc. of Bellevue, Wash., is no longer using the retail brand name of Travelscape.com, a Las Vegas Internet travel sales company it acquired 18 months ago.

Internet travel shoppers that click on Travelscape.com are now redirected to Expedia.com, which is now controlled by software giant Microsoft Corp. USA Networks Inc. is buying a controlling interest in Expedia for $1.5 billion.

The 350 employees working in Travelscape's building in the Summerlin district of Las Vegas will not be affected by the decision, Expedia marketing manager Christina Kozloff said, noting that no Las Vegas layoffs are expected.

"It's business as usual," Kozloff said, noting that Travelscape will still exist, but Expedia won't promote it as a brand.

Expedia purchased Travelscape.com from Bishop Gorman High School graduate Tim Poster, the founder and chairman, and Travelscape's then-Chief Operating Officer Tom Breitling for $95.5 million in a stock and debt transaction in March 2000.

Poster left the company last winter after his contract expired with Expedia. Breitling has been elevated to president of Travelscape.

"I think it was a mistake to (dissolve) the brand. It was the result of poor execution in marketing both brand names," Poster said. "If that's not true than why did they spend millions of dollars to market the brand for 18 months, then decide to (dissolve) the brand?"

Kozloff disputed that the company fumbled its marketing efforts. She declined to say how much the company had spent on marketing Travelscape in the past 18 months.

Travelscape employees will continue to operate as the Travelscape subsidiary of Expedia negotiating deals with hotels and airlines, Kozloff said.