Orbitz

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Web-based travel fare aggregator service

title: "Orbitz" type: doc version: 1 created: 2026-02-28 author: "Wikipedia contributors" status: active scope: public tags: ["expedia-group", "orbitz-brands", "companies-formerly-listed-on-the-new-york-stock-exchange", "travel-ticket-search-engines", "online-retailers-of-the-united-states", "american-companies-established-in-2001", "transport-companies-established-in-2001", "internet-properties-established-in-2001", "2003-initial-public-offerings", "2004-mergers-and-acquisitions", "2007-initial-public-offerings", "2015-mergers-and-acquisitions", "online-travel-agencies", "companies-based-in-chicago"] description: "Web-based travel fare aggregator service" topic_path: "geography/united-states" source: "https://en.wikipedia.org/wiki/Orbitz" license: "CC BY-SA 4.0" wikipedia_page_id: 0 wikipedia_revision_id: 0

::summary Web-based travel fare aggregator service ::

::data[format=table title="Infobox company"]

FieldValue
nameOrbitz Worldwide, Inc.
logoOrbitz logo.svg
typeSubsidiary
key_peopleAriane Gorin (CEO Expedia Group)
foundation
location_city500 West Madison, Chicago, Illinois
location_countryUnited States
industryTravel services
revenue$932 million (2014)
num_employees1,530 (2014)
parentExpedia Group
homepage
::

| name = Orbitz Worldwide, Inc. | logo = Orbitz logo.svg | type = Subsidiary | key_people = Ariane Gorin (CEO Expedia Group) | foundation = | location_city = 500 West Madison, Chicago, Illinois | location_country = United States | industry = Travel services | revenue = $932 million (2014) | num_employees = 1,530 (2014) | parent = Expedia Group | homepage =

Background

The company was incorporated in 2000 and began beta testing in February next year. Orbitz.com officially launched in June 2001.

Antitrust concerns

Before, during, and two years after launching the site, the company faced antitrust criticism since its creators controlled 75% of U.S. air travel. The United States Department of Transportation saw no antitrust issues with the launch of the Orbitz website. The United States Department of Justice ruled in 2003 that Orbitz was not a cartel and that there was no evidence of price fixing.

Nielsen's Net rating division that the launch of the Orbitz website in June 2001 was the biggest e-commerce launch ever to that date.

Ownership history

In November 2003, Orbitz filed paperwork to sell shares at between $22 and $24 each in an initial public offering. The company went public on December 18, 2003 at a price per share of $26. After the IPO, the airlines held 70% of the outstanding stock and over 90% of the voting power.

On September 29, 2004, Orbitz was acquired for $1.25 billion by New York City-based Cendant Corporation. Cendant paid $27.50 per share.

In 2006, The Blackstone Group acquired Travelport, the travel distribution services business of Cendant, for $4.3 billion in cash. At the time, Travelport included the Orbitz travel reservation website used by consumers, the Galileo computer reservations system used by airlines and thousands of travel agents, Gulliver's Travels and Associates wholesale travel business, and other travel related software brands and solutions.

Travelport announced in May 2007 that it had filed a registration statement with the U.S. Securities and Exchange Commission to sell a portion of Orbitz Worldwide in an initial public offering (IPO). Travelport said it planned to use a portion of the proceeds to pay down its debt. Trading began on July 20, 2007, and the IPO transaction closed on July 25, 2007. Travelport owned approximately 48 percent of Orbitz Worldwide following the IPO.

In February 2015, Expedia announced that it would acquire Orbitz for $1.6 billion in cash, to better compete with Priceline.com. The deal was announced a few days after Expedia agreed to purchase Travelocity.

Technologies

Orbitz ran on a mixed Red Hat Linux and Solaris based platform and was an early adopter of Sun Microsystems' Jini platform in a clustered Java environment. JBoss is used as application servers within their environment, along with various other proprietary and open source software. Orbitz licenses ITA Software's Lisp-powered QPX software to power their site. Orbitz Worldwide brands have been migrated to a common technology platform, which enables the same platform to service multiple travel brands in multiple languages in different markets and currencies as well. Orbitz has released parts of its Complex event processing infrastructure as Open Source.

Controversies

Southwest Airlines

Southwest Airlines filed a lawsuit against Orbitz for trademark infringement and false advertising in May 2001. Southwest, which had opposed the project from the outset, claimed Orbitz misrepresented its prices and used its trademarks without permission. In July, it withdrew its fares from Airline Tariff Publishing Company, the entity that distributes fare information to Orbitz and others, and dropped its case against Orbitz. Southwest went on to remove themselves from every other online outlet except their own. In June 2008, Orbitz For Business became one of the first Online Travel Agents to offer Southwest flights on the Orbitz For Business website.

WebLoyalty

In July 2009, CNET revealed that Orbitz, along with other popular consumer websites Buy.com and Fandango, have been routinely giving post-transaction marketers access to their customers' credit cards. The Senate Commerce Committee investigating these companies has described their services as a "scam". The scam works by charging a monthly fee (many users report a $12 charge from Reservation Rewards or Webloyalty showing up on their credit card statements) that is piggybacked with the Orbitz sale (as it stands, Orbitz Terms of Service agreement currently allows them to share customers' credit card information with third parties for their own uses).

''Milgram v. Orbitz''

In 2009, the state of New Jersey filed a lawsuit against the company alleging violation of their Consumer Fraud Act surrounding events with a Bruce Springsteen concert, where tickets were allegedly offered for sale on their website which did not actually exist. The court in Milgram v. Orbitz granted summary judgment for Orbitz, finding that Section 230 of the Communications Decency Act preempted the state law consumer fraud claims.

American Airlines

In December 2010, American Airlines temporarily ceased offering fares through Orbitz following pressure from American to convince Orbitz to use its AA Direct Connect electronic transaction system. AA tried to establish that Direct Connect would have full control over the distribution of its products and reduce GDS segment fees. Furthermore, Direct Connect enables AA to sell ancillary services to its customers. American was later ordered by an Illinois Court to resume offering fares and flight schedules. The court order came only days after American released a video jabbing Orbitz on YouTube.

Media Matters' "War on Fox"

Media Matters runs a website called DropFox.com, aiming to get advertisers to boycott Fox News. Orbitz initially referred to Media Matters' efforts as a "smear campaign".

Skiplagged lawsuit

In 2014, Orbitz and United Airlines initiated a federal lawsuit against 22-year-old Skiplagged founder Aktarer Zaman. The complaint alleges that Zaman "intentionally and maliciously" interfered with airline industry business relationships "by promoting prohibited forms of travel" which violate the common carrier contract with passengers. The complaint is centered on airline policies against hidden city tickets. Although the hidden-city practice itself is not illegal, the complaint alleged that Zaman's website is disruptive to their business. The lawsuit was dismissed.

References

Sources

References

  1. [https://www.sec.gov/Archives/edgar/data/1394159/000139415915000045/oww1231201410k.htm ORBITZ WORLDWIDE, INC. 2014 Form 10-K Annual Report]
  2. "Orbitz Worldwide: Contact Us".
  3. "FundingUniverse". FundingUniverse.
  4. O'Reilly, Natalie. (November 16, 2013). "4 Things You Didn't Know About Orbitz". [[The Motley Fool]].
  5. DiSabatino, Jennifer. (July 11, 2001). "NetRatings: Orbitz is Web's biggest e-commerce launch". [[Computerworld]].
  6. Ari Weinberg. "Will Orbitz's IPO Fly?". [[Forbes Magazine]].
  7. Taulli, Tom. (2003-12-18). "Orbitz Loses Altitude". [[The Motley Fool]].
  8. (September 29, 2004). "Cendant Corporation Agrees to Acquire Orbitz, Inc. for $1.25 Billion; $1.05 Billion Net of Acquired Cash". Orbitz.
  9. (August 23, 2006). "Affiliate of Blackstone Group Completes Acquisition of Cendant's Travelport Subsidiary; $4.3 Billion Transaction Represents PE Firm's Largest Equity Investment in the Technology Sector". [[PRNewswire]].
  10. [https://www.sec.gov/Archives/edgar/data/1386355/000095012311085923/y92518exv99w1.htm PREPETITION SOLICITATION OF VOTES WITH RESPECT TO PREPACKAGED PLAN OF REORGANIZATION]
  11. [https://techcrunch.com/2015/02/12/expedia-buys-orbitz-for-1-6b-in-cash-to-square-up-to-priceline/ "Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline"], techcrunch.com, February 12, 2015; accessed February 27, 2012.
  12. Ingrid Lunden. (February 12, 2015). "Expedia Buys Orbitz For $1.6B In Cash To Square Up To Priceline". [[TechCrunch]].
  13. (November 23, 2003). "At Orbitz, Linux Delivers Double the Performance At One-Tenth the Cost". Network Computing.
  14. Carol Sliwa. (September 6, 2004). "Have Jini, will travel". Computerworld.
  15. Gruman, Galen. (2006-04-03). "Orbitz gets up and running fast with open source". [[InfoWorld]].
  16. Asay, Matt. (2008-06-27). "Orbitz paves the way to enterprise open-source contributions". [[CNET]].
  17. (1999-03-26). "Center for Asia Pacific Aviation". Peanuts.aero.
  18. Greg Sandoval. (November 23, 2009). "E-tailers snagged in marketing 'scam' blame customers". [[CNET]].
  19. [http://www.philly.com/philly/news/20100901_N_J__judge_dismisses_lawsuit_over_concert-ticket_sales.html "N.J. judge dismisses lawsuit over concert-ticket sales"], David Porter, A.P. Philadelphia Inquirer, September 1, 2001; accessed September 8, 2010.
  20. [https://www.chicagotribune.com/2010/12/21/american-airlines-pulls-fare-data-from-orbitz-site/ "American Airlines pulls fare data from Orbitz site"], ''Chicago Tribune'', December 22, 2010.
  21. Strauss, Michael (2010): [https://www.amazon.com/dp/0557612462 Value Creation in Travel Distribution]
  22. [http://chicago.cbslocal.com/2011/06/01/american-airlines-court-ordered-back-on-orbitz-website "American Airlines Court Ordered Back Upon Orbitz Websites"], CBS Local, June 1, 2011.
  23. Schaal, Dennis. (May 31, 2011). "American Airlines jabs Orbitz on YouTube"". Phocuswire.
  24. Bond, Paul. (May 19, 2011). "Orbitz Backs Fox News Channel Amid Media Matters' 'Smear Campaign'". The Hollywood Reporter.
  25. [http://web.mit.edu/mherdeg/Public/14-cv-09214/1-complaint.pdf "Case: 1:14-cv-09214"]
  26. [https://www.usatoday.com/story/todayinthesky/2015/01/02/skiplagged-orbitz-united-lawsuit/21187949/ "Supporters donate thousands to Skiplagged defense fund"]
  27. [http://www.businessinsider.com/founder-fights-united-orbitz-lawsuit-2014-12 "This 22-Year-Old Computer Whiz Figured Out How To Game Airlines — Now Orbitz and United Are Suing Him"]
  28. [https://www.bloomberg.com/news/2014-11-18/united-orbitz-sue-travel-site-over-hidden-city-ticketing-1-.html "United, Orbitz Sue Travel Site Over ‘Hidden City’ Tickets"], bloomberg.com; accessed August 19, 2015.
  29. [https://www.yahoo.com/travel/no-more-flying-and-dashing-airlines-sue-over-hidden-103205483587.html "No More Flying and Dashing? Airlines Sue Over Hidden City Ticketing"], yahoo.com; accessed August 19, 2015.
  30. Gillespie, Patrick. (2014-12-30). "Why is United Airlines suing a 22-year-old?". CNN Money.
  31. Gillespie, Patrick. (2015-12-31). "How a 23-year-old beat United Airlines". CNN Money.

::callout[type=info title="Wikipedia Source"] This article was imported from Wikipedia and is available under the Creative Commons Attribution-ShareAlike 4.0 License. Content has been adapted to SurfDoc format. Original contributors can be found on the article history page. ::

expedia-grouporbitz-brandscompanies-formerly-listed-on-the-new-york-stock-exchangetravel-ticket-search-enginesonline-retailers-of-the-united-statesamerican-companies-established-in-2001transport-companies-established-in-2001internet-properties-established-in-20012003-initial-public-offerings2004-mergers-and-acquisitions2007-initial-public-offerings2015-mergers-and-acquisitionsonline-travel-agenciescompanies-based-in-chicago