Expedia, Inc. to Acquire Activity World

30th Mar 2004

Expedia, Inc.
today announced it would acquire Activity World, one of the
largest resellers of tours and activities in Hawaii. With the acquisition,
Expedia will significantly expand the destination services offerings
available through its Web sites and will become the first online travel
company to offer customers the option of booking in-destination activities
online or on location at their vacation property. Activity World will be a
wholly managed subsidiary of Expedia, Inc. Terms of the deal are
confidential and the transaction is expected to close in early April 2004.

Founded in 1986, Activity World is a Maui, Hawaii-based company that
operates more than two dozen kiosks in hotels and other locations on Maui.
At these locations, travelers can choose dozens of popular tours and
activities such as luaus, helicopter sightseeing tours, and snorkeling
excursions. With more than 80 employees, Activity World provides upwards
of 154,000 destination service packages per year in the multi-million
dollar destination services market in Hawaii.

“The average vacationer to Hawaii spends $209 per trip on tours and
activities, according to Hawaii Visitors and Conventions Bureau, and the
large majority of this spending is captured in the destination. Expedia is
investing in Activity World to expand our destination services strength in
one of the most popular vacation spots in the world, and to offer our
customers the best tours and activities no matter when or how they want to
plan and purchase them,” said Erik Blachford, CEO, Expedia, Inc. “Activity
World’s specialized expertise will be a tremendous asset as we continue to
pursue our strategy of offering customers everything they need to book the
whole trip.”

According to Craig Hill, President, Activity World, “Our primary mission
is to provide an exciting and memorable experience for visitors to the
Hawaiian Islands. As part of the Expedia family, we’ll be able to offer
that experience to more travelers than ever before, either when they book
their trips online or on the ‘spur of the moment,’ after they have


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