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CheapTickets

CheapTickets is an online founded in in , , by Michael J. Hartley and his wife Sandra Hartley, initially operating as a consolidator of discounted tickets by purchasing unsold seats from carriers. The company provides a platform for booking flights, hotels, vacation packages, car rentals, cruises, and activities, emphasizing budget-friendly options and earning rewards like CheapCash on select purchases. Headquartered in Chicago, , CheapTickets has evolved from a call-center-based service to a digital-first provider, serving millions of travelers annually through its website and . Following its founding, CheapTickets went public in and experienced rapid growth in the burgeoning online travel sector, selling approximately 960,000 airline tickets in one year through phone and early channels. In 2001, it was acquired by Corporation for $425 million in cash, integrating into Cendant's travel division alongside other brands. The company changed hands again in 2006 when Cendant sold its travel business, including CheapTickets and , to the Blackstone Group for $4.3 billion, forming part of the Travelport leisure division. By 2015, following Expedia Inc.'s $1.6 billion enterprise value acquisition of Worldwide—which encompassed CheapTickets—the brand became a wholly owned of , enabling expanded inventory and technology integration. Under Expedia Group, CheapTickets continues to focus on value-driven travel, offering features like flexible booking options, price drop protection, and bundled deals to attract cost-conscious consumers. Notable for its role in democratizing access to affordable leisure travel, the platform has weathered industry shifts, including the rise of online booking in the and disruptions from the , while maintaining a reputation for competitive pricing on domestic and international routes. As of 2025, it remains a key player in the online market, contributing to Group's portfolio of over 20 brands serving diverse traveler needs.

History

Founding and Early Years

CheapTickets was founded in 1986 in , , by Michael J. Hartley and his wife, Sandra Hartley. The couple launched the business after acquiring 3,000 unsold interisland tickets from Mid Pacific Airlines, which they purchased in bulk and sold at a discounted rate of $29.95 each through classified advertisements in the Honolulu Advertiser; the tickets sold out within two weeks, generating initial buzz for the new venture. The company's early centered on discounted leisure travel targeted at budget-conscious consumers, operating as an airline consolidator that bought excess seats from carriers and resold them at reduced prices, often without disclosing the names in promotions to maintain flexibility. This approach capitalized on the increased competition and pricing freedom enabled by the of 1978, which dismantled federal controls over fares and routes, leading to lower average ticket prices and more accessible for the public. In its first year, CheapTickets achieved sales of $250,000, demonstrating early viability in Hawaii's competitive travel market. From a modest operational base, including a small on Kapiolani Boulevard, the Hartleys emphasized phone-based sales and personalized to build loyalty among leisure travelers seeking affordable options for island-hopping and mainland trips. Michael Hartley, drawing on his prior experience in Hawaii's sector, handled operations and , while Sandra managed finances, fostering a lean structure that prioritized direct interaction over expansive in the nascent years. This foundation laid the groundwork for gradual scaling into call center operations by the late .

Expansion and Call Center Operations

Following its founding in , CheapTickets experienced rapid growth in ticket sales driven by newspaper advertisements, necessitating infrastructure to manage rising call volumes. In 1987, the company opened its first call center in , , to centralize operations and improve efficiency in processing discount airfare bookings. This facility marked the beginning of a dedicated for handling customer inquiries and reservations via phone, allowing CheapTickets to scale beyond its initial ad-response model. To accommodate continued demand throughout the late and , CheapTickets expanded its call center footprint across the . By 2001, it operated facilities in ; ; ; and , California, with plans to open a fifth in , to support East Coast operations and further distribute workload. These centers were strategically located to leverage cost-effective labor markets and reduce response times, enabling the company to process high volumes of calls—up to thousands daily during peak travel seasons—while maintaining its focus on discount fares. The expansion reflected a proactive approach to operational scaling, as call volumes grew alongside partnerships with over 30 major airlines that provided contractual access to bulk inventory for exclusive pricing. In parallel with call center growth, CheapTickets developed a limited network of physical travel stores to diversify sales channels and serve walk-in customers seeking personalized assistance. By the early 2000s, this brick-and-mortar presence had peaked at 16 locations, primarily in high-traffic areas, though it represented only a small fraction of overall compared to phone-based bookings. These stores facilitated in-person consultations for complex itineraries and bundled deals, contributing to brand visibility but accounting for less than 10% of total sales at their height. To manage high-volume ticket processing across both channels, CheapTickets emphasized efficient inventory management through contracts and distributed staffing across centers, ensuring rapid fulfillment without over-reliance on any single location.

Digital Transition and Online Launch

In 1997, CheapTickets launched its website, CheapTickets.com, as one of the earliest platforms enabling direct online purchases of travel services, including real-time booking of flights and vacation packages. This move marked a significant pivot from its traditional operations, allowing customers to access discounted leisure travel options without intermediaries. The company swiftly adopted e-commerce technologies to integrate with global distribution systems, streamlining the reservation process and enabling instant confirmations for airfares and bundled deals. This digital shift reduced dependence on its established call center model, which had previously handled the majority of bookings, and established CheapTickets as a frontrunner in online leisure travel by facilitating user-friendly, self-service transactions. From 1997 to 2000, CheapTickets saw explosive growth in online engagement, with traffic and sales surging as adoption accelerated among consumers. By 1998, online channels accounted for over 25% of sales, including 97,000 sold digitally that generated about $25 million in out of the company's total $171 million. This momentum continued, making the the primary driver by 2000, when gross bookings rose 34% year-over-year amid broader industry digitization.

Acquisitions and Ownership Evolution

Cheap Tickets Inc. went public on March 19, 1999, offering shares at an initial price of $15, with the stock closing at $31.25 on its first day of trading, reflecting strong investor interest in the online sector. In 2001, Corporation acquired CheapTickets for approximately $425 million in cash, marking a significant expansion of its services portfolio that included hotel franchises, car rentals, and other distribution networks. This deal integrated CheapTickets' discount airfare expertise into Cendant's operations, enhancing its position in the growing online sector. As part of the post-acquisition strategy to emphasize digital channels, CheapTickets announced the closure of its 16 brick-and-mortar retail outlets, with the process completed by the end of 2003 to streamline costs and focus on internet-based bookings. By , amid Cendant's corporate restructuring and spin-off of various units, its Travelport division—which encompassed CheapTickets, , and other online travel assets—was sold to an affiliate of the Blackstone Group for $4.3 billion in cash. This transaction transferred ownership of CheapTickets to under Blackstone's control, aligning it with a broader global travel distribution platform that included global distribution systems like Galileo. Following the Blackstone acquisition, CheapTickets was incorporated into Orbitz Worldwide, Inc., which was formed in 2007 as a public company spun off from Travelport's online travel operations to consolidate brands like Orbitz and CheapTickets under a unified entity focused on consumer-facing travel services. In 2015, Expedia, Inc. acquired Orbitz Worldwide for $1.6 billion, bringing CheapTickets under the Expedia Group umbrella as a subsidiary brand specializing in budget travel bookings. This move strengthened Expedia's market position by adding Orbitz's portfolio, including CheapTickets, to its ecosystem of travel platforms. As of 2025, CheapTickets continues to operate as part of Expedia Group, maintaining its role in discounted flight and package offerings.

Products and Services

Flight and Air Travel Bookings

CheapTickets' primary service revolves around providing discounted tickets for domestic and flights, catering primarily to budget-conscious travelers seeking affordable options. The platform aggregates inventory from major airlines such as , , and , as well as low-cost carriers like , enabling users to compare and book fares across a wide network of destinations worldwide. These bookings are facilitated through connections to global distribution systems (GDS) that provide access to real-time airline inventories, ensuring availability and competitive pricing for both one-way and round-trip journeys. Key features of CheapTickets' flight booking process include flexible search tools that allow users to explore options by date ranges, nearby airports, or preferred times, helping to identify the lowest fares without rigid constraints. The platform supports multi-city itineraries, enabling travelers to plan complex trips with multiple stops, such as a journey from to and then to , all within a single booking interface. Additionally, bundle options permit combining flights with other elements like hotels for potential savings, though standalone flight bookings remain the core focus for emphasizing cost-effective . Real-time notifications via the provide updates on flight status, gate changes, and delays to enhance the travel experience post-booking. CheapTickets pioneered online flight sales with the launch of its in 1997, marking it as an early innovator in internet-based travel bookings at a time when digital reservations were emerging. As a subsidiary of the , the service now integrates with Expedia's extensive inventory systems, offering real-time availability and for flights sourced directly from partners. This evolution has solidified CheapTickets' role in delivering accessible, budget-oriented solutions.

Hotel and Accommodation Reservations

CheapTickets offers access to an extensive inventory of over 3.5 million hotels and accommodations worldwide, as of June 2025, facilitated through its affiliation with the , which maintains partnerships with major international hotel chains such as and a diverse array of independent properties. This global network enables users to explore options ranging from luxury resorts to budget-friendly stays in popular destinations like , , and Cancun. The platform emphasizes competitive pricing through rate comparisons across multiple suppliers and exclusive "Secret Bargains," which provide members with discounts of 50% or more on select hotels, often including limited-availability deals not visible to non-members. Users benefit from advanced filtering tools that allow customization by price range, geographic location, specific amenities (such as pools, free , or spas), and aggregated guest reviews from verified travelers, ensuring informed decisions based on real experiences. The mobile app further enhances accessibility, supporting on-the-go searches, real-time availability checks, and secure reservations directly from or devices. Value-added features underscore CheapTickets' focus on flexibility and rewards, with free cancellation policies available on most hotel bookings—typically requiring notice at least 24 hours prior to check-in—and integration with Rewards for loyalty benefits. Through this program, customers earn 2 points per $1 spent on hotel reservations, redeemable for discounts, free nights, or upgrades at VIP Access properties offering perks like complimentary breakfast and room enhancements for higher-tier members. These options, combined with occasional bundling opportunities for combined flight and hotel packages, promote savings and convenience for travelers.

Additional Travel Offerings

CheapTickets provides packages that bundle flights, hotels, and sometimes activities into all-inclusive deals, designed primarily for leisure travelers aiming to maximize savings on budget-friendly trips. These packages cater to various preferences, including vacations, romantic getaways, and general budget travel, with options starting under $399 for combined flight and hotel bookings to destinations across , the , and beyond. packages are a key offering, encompassing accommodations, meals, beverages, amenities, and activities at a single price to simplify planning and reduce costs for vacationers. In addition to core bookings, CheapTickets facilitates rental car reservations through partnerships with major providers such as Hertz, Avis, , and others, enabling customers to secure vehicles for short-term, weekly, or one-way trips often with pickup convenience. These services include access to a range of vehicle types, from economy cars to larger options, with deals like up to 25% off weekly rates through select partners. Customers can opt for add-ons, including collision plans, to cover potential damages during the rental period, providing peace of mind for travelers navigating unfamiliar destinations. CheapTickets also offers cruise bookings, featuring itineraries from prominent cruise lines with durations of 3 to 9 nights or longer, searchable by departure ports and destinations like the and . As a subsidiary of , which acquired Worldwide (CheapTickets' prior parent) in 2015, the platform integrates broader group resources for competitive cruise deals. Complementing this, CheapTickets provides vacation rental services, including cabins, condos, villas, and homes, often leveraging Group's network for diverse properties worldwide, from U.S. cabins to international options like those in or .

Corporate Affairs

Headquarters and Operational Structure

CheapTickets operates as a brand and subsidiary of , Inc., with operational headquarters in , , while its principal legal office is at 1111 Way W, Seattle, WA 98119, . This aligns with 's overall headquarters in . The company's operational structure is deeply integrated into 's ecosystem, leveraging shared corporate resources for technology development, , and customer support services. This includes access to 's advanced digital platforms for booking processing, payment systems, and inventory management across multiple travel brands. CheapTickets fully transitioned to digital operations in the early . Customer interactions now occur exclusively through online and remote channels, including 24/7 phone support, live chat with virtual agents, and email assistance managed by centralized teams. As part of , CheapTickets draws from a combined workforce of approximately 16,500 employees worldwide as of early 2025, distributed across key departments such as for platform maintenance and security, for improvements, data analytics for pricing optimization, and for targeted promotional campaigns. This structure emphasizes efficiency in a digital-first environment, with teams focused on enhancing and operational .

Legal and Regulatory Issues

In 2009, the filed a against Worldwide, Inc., which operated CheapTickets.com, and TicketNetwork, Inc., alleging deceptive trade practices in the sale of speculative event tickets, including those for concerts, where tickets were advertised and sold without possession by the sellers. The suit claimed violations of the Consumer Fraud Act through misleading representations that tickets were available when they were not. In 2010, the dismissed the case, granting immunity to CheapTickets under of the , ruling that as an online platform facilitating third-party sales, it was not liable for the content or actions of ticket providers. This decision established precedent for platform protections in . As a ticket agent, CheapTickets adheres to U.S. (DOT) regulations requiring full disclosure of airfares, including taxes, fees, and ancillary charges like baggage, at all points of sale to ensure pricing transparency for consumers. These rules, updated in 2024, mandate that ticket agents display passenger-specific fees for checked bags, carry-ons, and seat selection upfront, with CheapTickets implementing such disclosures on its booking platform. For international operations, CheapTickets complies with the General Data Protection Regulation (GDPR) by obtaining user consent for data processing, providing transparency on data usage, and facilitating rights like access and deletion for EU residents through its aligned with standards. Following 's 2015 acquisition of Worldwide, CheapTickets integrated into Expedia Group's unified policies, which influenced liability handling for disruptions. During the , Expedia Group's refund policies for CheapTickets bookings required processing credits or refunds based on airline and hotel terms, leading to class-action lawsuits against Expedia alleging delays or denials in issuing owed refunds for canceled travel. These suits claimed violations of laws, but many were resolved through policy adjustments and settlements without specific findings of liability against CheapTickets. In 2025, , including brands like CheapTickets, faced litigation under Title III of the Helms-Burton Act (LIBERTAD Act) for facilitating bookings at hotels in expropriated after the revolution. A federal jury in awarded $29.8 million against Expedia in April 2025, but the court granted judgment as a matter of law in favor of Expedia in September 2025, dismissing the claims.

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    Sep 9, 2020 · Expedia has been hit with a class action lawsuit for refusing refunds for flights canceled over the coronavirus outbreak.