Internet travel agency expands

Thursday, Jan. 24, 2002 | 10:01 a.m.

BELLEVUE, Wash. -- Expedia Inc., the second-biggest Internet travel agency, agreed buy a Classic Vacation Group Inc. unit for $82 million in cash, stock and assumed liabilities to add sales from traditional travel agencies.

Buying Classic Custom Vacations, which had about $300 million in sales last year, will expand Expedia's wholesale business and deepen its offerings in locations such as Hawaii and Mexico, Expedia Chief Financial Officer Gregory Stanger said.

Expedia got into wholesaling travel products to other retailers in March 2000 when it bought Las Vegas-based Travelscape Inc.

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