As investors consider the looming Sabre IPO, they'll have to consider how adverse the impact would be if Expedia opts to terminate its Travelocity agreement with Sabre during the course of its 9-year term.
Terry Jones and Rich Barton, the founders of Travelocity and Expedia, respectively, offer verdicts on what were once hot-button issues, as well as lessons for travel startups and more mature companies, as well.
Lastminute.com will remain the last man standing of what was once Travelocity -- but only until Sabre can find a buyer in a fire sale because keeping it makes no sense at this juncture.
Now that Travelocity has unloaded its North American websites to Expedia and its private label business to Orbitz Worldwide, the largest remaining question is who will buy Travelocity's European holdings, including LastMinute.com.
Was the Expedia-Travelocity deal just a harbinger of things to come? Expedia thinks so and is looking for additional online travel agency partners who would consider outsourcing the hard stuff to Expedia.
Want to gauge Expedia's priorities? It implemented its hotel partnership with Travelocity in a hurry in December. But when it comes to rolling out HomeAway's vacation rentals, Expedia says it will get around to deciding how to proceed in the second half of 2014.