Europe’s biggest low cost carrier Ryanair today released a press statement in which they confirm that they have given a 30 days notice to Expedia that its exclusive hotel contract will end, following Expedia’s failure to honor payment terms.

Ryanair
The agreement between Ryanair and Travelscape gave Expedia exclusive rights to sell hotel accommodation on Ryanair.com (Europe’s largest travel website) and gave Expedia on-line access to Ryanair’s 58 million annual passengers.

While the contract operated satisfactorily in its early stages, Expedia has been in breach of a number of payment obligations during recent months and despite efforts on Ryanair’s part to resolve the situation Expedia has failed to honor these contractual obligations and come to a solution for the problems. As a result, Ryanair has now given Expedia notice of its intention to end the contract with effect from the 8th November 2008.

Commenting on this decision, Ryanair’s Michael Cawley, said: “Ryanair offered Expedia the unique opportunity to exclusively access its 58 million passengers through Europe’s largest travel website, Ryanair.com. Regrettably, Expedia has failed to honor key obligations under this agreement, in particular its payment terms, and our attempts in recent months to get Expedia to resolve these breaches, have failed so we now have no alternative but to give them notice“.

“We have already received approaches from a number of other hotel providers across Europe and expect to have a replacement partner up and running before the end of the year so that hotel accommodation can continue to be available on Europe’s biggest travel website, www.Ryanair.com, at the lowest prices to 58 million consumers who already enjoy Europe’s guaranteed lowest fares. Should Expedia remedy its breach within the 30 day period, Ryanair will continue the partnership.”

Expedia
Expedia CEO Dara Khosrowshahi responded to Ryanair’s notice to end the contract; “We are disappointed by the statement made by Ryanair earlier today, as we believe that Expedia has complied in every respect with the terms of our agreement with Ryanair, including all payment terms, and that Ryanair has failed to honor its obligations under that agreement”

Dara Khosrowshahi continued; “We have a long history of solid relationships with our partners and take our contractual obligations seriously; we expect our partners to do the same. We strongly believe that Ryanair does not have the right to terminate our agreement.”

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