The Expedia-AirAsia joint venture could be a very big deal.
Announced six months ago, the joint venture is now a reality in India, Singapore, Malaysia and Thailand.
The 50-50 joint venture between Expedia Inc. and the Malaysia-based low cost carrier now operates Expedia India, Expedia Singapore, Expedia Malaysia and Expedia Thailand.
Under the agreement's terms, Expedia gets exclusive distribution rights beyond AirAsia.com of the airline's flights and packages throughout Asia Pacific, with the exception of Australia and New Zealand.
That obviously means that other OTAs will have a tough sell in proving their comprehensiveness.
The joint venture could have far-reaching implications for both the Expedia and the airline.
The exclusivity of the distribution deal gives Expedia a competitive advantage on long-haul destinations to and from the region, and also expands the airline's online reach.
In addition, the vacation package aspect of the agreement will boost Expedia's hotel business in the region as it battles Priceline's Booking.com and Agoda.
The joint venture also operates the airline's AirAsiaGo and GoRooms businesses.
Among the reasons Expedia Singapore cites for booking on the site is that "it is the only online travel agent selling AirAsia flights and packages."
"The joint venture will operate any additional Expedia-branded travel sites in Asia going forward, as well as as AirAsia's existing AirAsiaGo.com business and GoRooms.com," says Katie Fourcin, an Expedia spokeswoman.
Although Expedia is a leading OTA in North America and other markets, it often trails home-grown OTAs in Asia.
"There is clearly some powerful potential with Asia's red-hot LCC and the reach and breadth of the world's largest OTA," says Douglas Quinby, PhoCusWright's senior director of research. "They have an uphill battle with strong, well-entrenched local OTA brands across the region, but this does give Expedia India a leg up on the fast growing international market."
AirAsia.com now features a link to Expedia Malaysia in AirAsia's "Our Partner" section.
Dan Lynn is the new CEO of AirAsia Expedia, which is headquartered in Singapore.
"The Asian travel market is set to explode," Lynn says. "One of the strongest regional contributors to this growth is the buoyant Indian travel market. Expedia is focused on democratizing travel by bringing amazing value holidays to the Indian travelers."
Expedia India launched in 2008, Expedia Singapore came online in December 2010, and Expedia Thailand and Expedia Malaysia debuted in March 2011.