Expedia, Citysearch Form Alliance

NEW YORK—Expedia.com, a majority-owned unit of USA Interactive, is forming a cross-marketing alliance with online entertainment guide Citysearch, also owned by USA Interactive. In addition, Expedia said it would further develop its tie-up to sell tickets from Ticketmaster, another majority-owned USA Interactive unit. Ticketmaster is already experimenting with ways to sell select tickets to sporting events and the theater through Expedias website. Test sales of tickets through Expedia to the musical “Rent” in New York and for Orlando Magic basketball games had been successful, said a spokesperson. The alliance between Expedia and Ticketmasters Citysearch marks the first such deal between the two USA Interactive holdings, and follows an offer from USA Interactive on June 4 to buy full control of the companies, along with another of its majority-owned units, Hotels.com. As part of the new collaboration, consumers who browse through Citysearchs online city guides, which have information on restaurants, concerts, and other events, will be able to shop for plane tickets, hotels, and other travel needs through a link on the site to Expedia. Expedia will use Citysearch as its preferred provider of local information and advice, which will be available on Expedia.com later this summer. The alliance was announced on the same day Sabre Holdings Corp. said its Travelocity.com online travel unit, Expedias biggest competitor, would remain the exclusive air, car and hotel booking engine on Yahoo! Inc.s travel website. SOURCE: Reuters