Expedia finalizes buyout
of former isle travel firm

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By Russ Lynch
rlynch@starbulletin.com

Expedia Inc., a huge international online travel service, has completed its acquisition of Classic Custom Vacations, a $300 million-a-year travel wholesaler that had its start in Hawaii 25 years ago.

Upscale vacations in Hawaii are still a big part of the San Jose-based company's business, but CCV also sells custom-tailored vacations in Mexico, North America, Europe and the Caribbean.

The company uses its wide database of air, cruise, ground transportation, hotel and tour components in a system that lets retail travel agencies put together high-end customized trips for their customers.

The deal, announced in January and concluded today, makes Expedia one of the biggest wholesalers of hotel stays at four- and five-star sites in Hawaii and also opens up opportunities for Expedia in other locations.

Ron Letterman, who has headed Classic Custom Vacations since 1992, will remain as president of the company, which will operate as a division of Expedia.

Letterman is a former head of the American Express travel operations in Hawaii.

Expedia paid some $78 million for CCV in a deal that included shares and cash worth about $48 million and assumption of about $30 million in CCV liabilities.

Expedia, based in Bellevue, Wash., bought the business from Classic Vacation Group Inc.