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Economic slowdown in the US could adversely affect the company’s business. According to the Organization for Economic Cooperation and Development (OECD), the GDP growth of the US is expected to slowdown from approximately 3.6% in 2006 to 3.1% in 2007. The profitability of the company’s businesses is affected by local economic conditions such as the liquidity of the financial markets, the level and volatility of interest rates and equity prices, investor sentiment, inflation, and the availability and cost of credit. Economic slowdown in the US could adversely affect the company’s financial position. Social factors include health consciousness, population growth rate and emphasis on safety and security. Travellers could refrain from booking trips online because of mistrust of the ability of travel companies to keep their financial and personal details secure. Due to these fears about security, more consumers are using the internet for researching than actually booking their travel online. Security fears hamper the adoption of the online medium as a means of planning and booking holidays. For Expedia, which conducts a vast majority of its business online, these perceived fears could considerably affect its revenues and margins. Any loss of data by any online firm, it need not be Expedia, could significantly undermine the public’s trust in online transactions.


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