Hotwire
Hotwire is a US-focused, direct-to-consumer online travel agency operating as a wholly-owned brand within Expedia Group. It sells discounted hotel rooms, rental cars, flights, and vacation packages via its Hot Rate® opaque-pricing engine, serving value-seeking leisure travelers willing to forgo knowing the provider identity in exchange for lower rates.
- Company typePrivate
- Founded2000
- HeadquartersSan Francisco, United States
- Headcount251–500
- GTM typeB2C
- OfferingDigital Commerce or Content
What Hotwire does
Hotwire is a consumer-facing online travel agency (OTA) operating the hotwire.com website and a cross-platform mobile app, wholly owned by Expedia, Inc. as part of Expedia Group (NASDAQ: EXPE). The company is incorporated in Washington, USA, with operating support routed through a San Francisco customer-service PO Box and legal/corporate headquarters functions handled at Expedia's Seattle address. Hotwire sells discounted hotel rooms, rental cars, flights, and bundled vacation packages through a direct-to-consumer e-commerce flow without intermediary agents.
The platform's defining feature is the Hot Rate® opaque-pricing engine, under which the hotel name and address (and, for cars, the rental agency identity) are concealed until after booking in exchange for substantially lower published rates on supplier inventory that would otherwise go unsold. The technology stack combines dynamic, quote-based pricing on pre-negotiated supplier rates with SSL-secured transactions, third-party mapping (Microsoft Maps, Google Maps, OpenStreetMap), and a Low-Price Guarantee that refunds the difference if an identical booking is found at a lower publicly available rate within 24 hours. Vacation packages bundle flight + hotel (+ optional car) at a stated average $294 savings versus à la carte. Travelscape, LLC, a wholly-owned subsidiary, facilitates hotel reservations and handles tax remittance (including New York sales tax vendor registration #880392667 and NYC hotel occupancy tax #033960).
Hotwire's business model is transaction-based: revenue is generated through a facilitation/markup fee on top of pre-negotiated supplier rates, plus tax-recovery charges collected on behalf of hotel and rental-car suppliers, plus embedded commissions from Allianz Global Assistance on Trip Protection and Rental Car Protection products. The Low-Price Guarantee functions as contra-revenue when triggered. Primary customer segments are value-seeking leisure travelers willing to trade brand choice for price (Hot Rate® Hotel and Car users), with secondary segments including group-travel organizers (overflow routed to HotelPlanner), international travelers, accessibility-needs travelers, and gift-payers. Distribution is dominated by self-serve online and the mobile app, supplemented by 24/7 phone/SMS support; an affiliate program is currently on pause.
Hotwire firmographics
Firmographics- Name
- Hotwire
- Legal name
- Hotwire, Inc.
- Website
- https://hotwire.com
- Company type
- Private
- Founded year
- 2000
- Operating status
- Operating
- Headcount range
- 251–500 employees
- Short description
- Hotwire is a US-focused, direct-to-consumer online travel agency operating as a wholly-owned brand within Expedia Group. It sells discounted hotel rooms, rental cars, flights, and vacation packages via its Hot Rate® opaque-pricing engine, serving value-seeking leisure travelers willing to forgo knowing the provider identity in exchange for lower rates.
- Ownership category
- akta.pro rank
Hotwire industry classification
Industry- Product category
- Online Travel Agency
- NAICS
- Travel Agencies (561510)
- akta.pro primary industry
- Online Booking Tools (OBT) & Corporate Booking UX (THALAGAD)
- akta.pro secondary industries
- Fraud Prevention, Risk Scoring & Chargeback Management (THALAHAF), Trip Cancellation/Interruption & Refund Protection Platforms (THALALAB)
Keywords
Where Hotwire is headquartered
LocationHeadquarters
- HQ city
- San Francisco
- HQ country
- United States
- HQ region
- North America
Offices2 records
Markets served
Hotwire business model
Business model- GTM type
- B2C
- Offering type
- Digital Commerce or Content
- Cost components
- Technology or R&D, Operations, Marketing or Sales, Personnel
Revenue model
- Hotel facilitation and service fees: Hotwire pre-negotiates room rates with hotel suppliers and adds a facilitation/service fee to the displayed rate. The room rate is a combination of the pre-negotiated supplier rate plus the retained facilitation fee; service fees vary by amount and type of reservation. The displayed price is the total reservation price charged to the customer's credit card by the Hotwire Companies (Expedia, Inc., Travelscape, LLC).
- Vacation package bookings: Revenue from bundled flight + hotel + car packages; bundles are promoted at an average $294 savings versus à la carte, driving take-rate on package transactions.
- Car rental commissions and opaque-rate mark-up: Mark-up on Hot Rate® Cars (rented via hidden agency identity until post-booking) and standard car rental bookings; partner agencies include ACE, Advantage, Alamo, Dollar, Enterprise, Europcar, Hertz, National, NU, Sixt, Thrifty. Hot Rate® Cars are fully prepaid at booking with no refunds/changes.
- Flight booking commissions: Commission-based flight bookings (standard rates and Hot Rate® Flights) sourced from airline and GDS suppliers; subject to supplier rules and restrictions including fare change risk.
- Travel insurance referral commissions (Allianz): Referral/embedded distribution of Trip Protection and Rental Car Protection insurance products through partner Allianz Global Assistance; insurance appears as a separate charge on the customer's credit card statement from Allianz.
- Tax recovery charges: Recovery of estimated occupancy/sales/use taxes paid to hotel and rental car suppliers, collected from customers at the time of booking.
- Low-Price Guarantee payouts (contra-revenue): If a lower identical rate is found within 24 hours of booking, Hotwire pays the difference; this is a contra-revenue item, not a revenue stream.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Dynamic, quote-based pricing on prepaid hotel reservations (pre-negotiated room rate + facilitation fee + taxes + service fees) |
| Transaction based/ take rate | Pay-as-you-go | Dynamic, quote-based pricing on car rentals with 24-hour billing cycle; Hot Rate® Cars include all applicable tax-recovery charges and fees |
| Transaction based/ take rate | Pay-as-you-go | Dynamic pricing on flight bookings (standard rate and Hot Rate® Flights) |
| Transaction based/ take rate | Pay-as-you-go | Vacation package pricing with a stated average $294 savings vs. booking components separately |
| Other | Pay-as-you-go | Optional add-on insurance products (Trip Protection and Rental Car Protection) priced separately at checkout via Allianz Global Assistance |
Go-to-market motion4 records
Distribution channels6 records
Marketing channels8 records
Hotwire product offering
Product offeringCore offering
Hotwire operates a consumer-facing online travel agency offering discounted hotel rooms, car rentals, flights, and vacation packages via its website and mobile app. Its signature Hot Rate® opaque-pricing model conceals the hotel brand or rental agency identity until after booking in exchange for deeply discounted rates. Bundled vacation packages combine flight + hotel + car for an average stated savings of $294 versus à la carte booking.
Product overview
Hotwire is a consumer-facing online travel agency (OTA), operated by Expedia, Inc. as part of Expedia Group, that offers a single integrated travel-booking platform organized around four core product lines: Hotels, Cars, Flights, and Vacation Packages. The core booking platform is complemented by a "Hot Rate®" opaque-inventory pricing model that spans hotels, cars, and flights, plus add-on travel protection products (Trip Protection Insurance and Rental Car Protection) underwritten by partner Allianz Global Assistance, a mobile app, a Low-Price Guarantee service feature, and a B2B Hotel Partner Program for inventory suppliers. The portfolio is unified under a single Hotwire brand and account system, with a shared checkout, account, and customer-service experience across all booking types.
Differentiator
Problem solved
Functional benefit
Brands
- Hot Rate: Hot Rate is a registered trademark and distinct product line of Hotwire featuring opaque/undisclosed-provider bookings for hotels, cars, and flights at deeply discounted rates, with the specific provider identity revealed only after booking.
- Hot Fare
- TripStarter
Products and services
- Hotwire Hotels Hotel booking platform offering last-minute deals on properties worldwide, including both Hot Rate® Hotels (opaque/deeply discounted) and standard-rate hotel reservations, with filters by star rating, amenities, and accessibility needs. Targeted at value-seeking leisure travelers.
- Hotwire Cars Car rental booking service with both Hot Rate® Cars (opaque agency name revealed only after booking) and standard-rate car rentals across economy through luxury categories, minivans, and SUVs, with airport and non-airport pickup locations and one-way options.
- Hotwire Flights Flight booking service offering last-minute and Hot Rate® Flight deals, with roundtrip and one-way search across U.S. destinations, passenger selection, and itinerary management. Commission-based fares sourced from airline and GDS suppliers, subject to supplier rules.
- Hotwire Vacation Packages Bundle booking product combining a flight and hotel (with optional car) into a single reservation, marketed at an average $294 savings versus booking components separately. Low-Price Guarantee applies to packages.
- Hot Rate® Opaque-inventory pricing model in which the hotel name, address, and (for cars) rental agency are hidden until after booking, in exchange for deeply discounted rates. Spans Hotels, Cars, and Flights; non-refundable and non-changeable.
- Trip Protection Insurance Optional trip-cancellation and interruption insurance offered during checkout, underwritten and serviced by partner Allianz Global Assistance, providing emergency medical/legal/travel assistance and trip-cancellation coverage.
- Rental Car Protection Optional primary rental-car insurance offered through partner Allianz Global Assistance, covering physical damage to a rental car up to $40,000 from collision, fire, storm, vandalism, or theft, with a 24-hour multilingual help hotline (max 45-day rental).
- Hotwire Mobile App Native mobile application that allows users to search, book, and manage Hotwire travel reservations on iOS and Android devices, with messaging-based customer support for Hot Rate® hotels and cars.
- Hotwire Low-Price Guarantee Best-rate guarantee that refunds the difference if an identical booking is found at a lower publicly available rate within 24 hours of booking; applies to retail-rate hotels, Hot Rate® cars, cars, flights, and vacation packages booked on Hotwire.com or the mobile app.
- Hotwire Partner Program (Hotels) B2B program that allows hotel suppliers to fill unsold rooms by setting room rates on Hotwire; customer sees the hotel's name and address only after booking, preserving brand and rate integrity. Supply-side inquiries routed to [email protected].
Quantifiable outcome
- Average savings of $294 on bundled vacation packages (flight + hotel) vs. booking components separately
- +6 more outcomes
Companies that use Hotwire
Customer profileSegments7 records
Ideal customer profiles5 records
Hotwire technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration5 records
Feature7 records
Hotwire partnerships and signals
Strategic signalPartnerships
16 partnerships are on record, tiered flagship, core and minor.
- Allianz Global AssistanceflagshipAllianz Global Assistance is Hotwire's exclusive travel insurance partner, underwriting and administering both Trip Protection and Rental Car Protection products sold at Hotwire checkout. Insurance charges appear as a separate transaction from Allianz on the customer's credit card statement. All policy documentation, claims, and customer questions are handled directly by Allianz. Rental Car Protection provides primary coverage up to $40,000 in physical damage, max 45-day rental, with a 24-hour multilingual help hotline; coverage applies worldwide except Israel, Jamaica, Republic of Ireland, and Northern Ireland.
- HotelPlannercoreFor customers who need to book more than 6 hotel rooms, Hotwire's site automatically suggests and redirects the search to HotelPlanner, described as the leader in group travel online. The partnership extends Hotwire's reach into group travel without requiring internal group-booking infrastructure.
- PayPalcorePayPal is offered as a payment method on Hotwire bookings. Customers can either create a new PayPal account or log into an existing one at checkout; PayPal issues the receipt via email. PayPal charges and Hotwire reservation charges appear as separate transactions.
- ACE Rent A CarminorACE is one of the leading car rental agencies that supplies Hot Rate® Car inventory to Hotwire, offering deep discounts on unsold rental cars in exchange for anonymous (agency-hidden) pre-booking pricing.
- Advantage Rent A CarminorAdvantage is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Alamo Rent A CarminorAlamo is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Dollar Car RentalminorDollar is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Enterprise Rent-A-CarminorEnterprise is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Europcar (International only)minorEuropcar is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire for international rentals only.
- HertzminorHertz is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- National Car RentalminorNational is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- NU Car RentalsminorNU is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- SixtminorSixt is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Thrifty Car RentalminorThrifty is a leading car rental agency supplying Hot Rate® Car inventory to Hotwire.
- Hotel partners (Hotwire supply network)flagshipHotwire operates a hotel partner program under which suppliers provide pre-negotiated room rates. Hotel names/addresses are concealed from customers until after booking, protecting partner brand and rate integrity. Hotel partners access support via [email protected].
- Expedia, Inc. (parent company)flagshipExpedia, Inc., a Washington corporation, is the parent company of Hotwire and its corporate affiliates including Travelscape, LLC. The Terms of Use define 'Hotwire Companies' as Expedia, Inc. and its subsidiaries. All legal, dispute resolution, IP/trademark complaints, and seller-of-travel operations run through Expedia, Inc.'s legal and corporate infrastructure in Seattle, WA. Hotwire's COVID-19 travel guidance page is integrated with Expedia's travel-advisor tool.
Scale indicators6 records
Recent moves6 records
Expansion highlights5 records
Hotwire competitors and assessment
Company assessmentRegional players
- Agoda: Agoda is a Booking Holdings OTA with strong APAC hotel coverage, offering opaque deals and discounted rates in its core markets. It is comparable to Hotwire on opaque hotel pricing mechanics and discounted positioning, but serves primarily Asia-Pacific geographies rather than the US/Canada.
Direct peers
- Priceline: Priceline operates an express/opaque pricing model for hotels, flights, and car rentals under Booking Holdings, directly comparable to Hotwire's Hot Rate® opaque-deal mechanic and discounted-travel positioning. Both target price-sensitive leisure travelers willing to forgo provider identity for lower rates.
- Travelocity: Travelocity is another Expedia Group OTA brand offering hotels, flights, cars, and packages in the US market. It competes head-to-head with Hotwire for the same price-sensitive leisure traveler, differentiated primarily by brand and promotional positioning rather than product mechanics.
- Expedia: Expedia.com is Hotwire's sister brand within Expedia Group, offering the same four product categories (hotels, cars, flights, packages) at retail rates. They share supply infrastructure but differentiate on price-positioning: Expedia at retail, Hotwire at opaque discounts.
- Orbitz: Orbitz is a US-focused OTA within Expedia Group offering hotels, flights, car rentals, and vacation packages. It is directly comparable to Hotwire in product breadth, customer base (US leisure travelers), and price-positioning (mid-market retail + deals).
Broad incumbents
- Kayak: Kayak is a meta-search engine within Booking Holdings that compares hotel, flight, car, and package prices across OTAs including Hotwire. It is a partial competitor as a discovery layer upstream of Hotwire's booking flow, and also offers direct booking on its own OTA.
- Booking.com: Booking.com is the largest OTA globally and the dominant hotel and alternative-accommodation booking platform. It overlaps with Hotwire across hotels, flights, car rentals, and packages, but operates at much larger scale and with a transparent-pricing default rather than an opaque-deal focus.
- Trivago: Trivago is a hotel-focused meta-search engine (also part of Expedia Group) that compares rates across OTAs and hotel suppliers. While not a direct OTA competitor for Hotwire's bundle/car/flight products, it competes as a price-discovery layer in the same US hotel-shopper audience.
Emerging players
- Skyscanner: Skyscanner is a flight-and-hotel meta-search engine with global reach that competes with Hotwire's flight offering on price discovery and last-minute deals. It serves a similar price-sensitive international traveler and is increasingly booking-direct.
- Hopper: Hopper is a mobile-first OTA specializing in opaque/discounted flights, hotels, and car rentals, with a heavy emphasis on price prediction and last-minute deals. Its opaque-deal model and mobile-first GTM directly mirror Hotwire's Hot Rate® mechanic, targeting the same price-sensitive customer.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
Hotwire social profiles
Digital presenceHotwire compliance and trust
Trust signalCompliance5 records
Hotwire financial estimates
Financial estimateRevenue estimate
Valuation estimate
Hotwire leadership team
Management profileNumber of profiles
Profiles2 records
Hotwire subsidiaries and ownership
Company hierarchySubsidiaries1 record
Hotwire funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Hotwire M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Hotwire
What does Hotwire do?
Hotwire operates a consumer-facing online travel agency offering discounted hotel rooms, car rentals, flights, and vacation packages via its website and mobile app. Its signature Hot Rate® opaque-pricing model conceals the hotel brand or rental agency identity until after booking in exchange for deeply discounted rates. Bundled vacation packages combine flight + hotel + car for an average stated savings of $294 versus à la carte booking.
Is Hotwire a public or private company?
Hotwire is a private company. It is classified as corporate owned and is currently operating.
When was Hotwire founded?
Hotwire was founded in 2000. It employs 251 to 500 people.
Where is Hotwire based?
Hotwire is headquartered in San Francisco, United States, in the North America region.
How does Hotwire make money?
Seven revenue lines are on record. Hotel facilitation and service fees are the primary driver. The others are vacation package bookings, car rental commissions and opaque-rate mark-up, flight booking commissions, travel insurance referral commissions (Allianz), tax recovery charges and low-Price Guarantee payouts (contra-revenue).
Who are Hotwire's main competitors?
Agoda is listed as a regional player. Direct peers are Priceline, Travelocity, Expedia and Orbitz. Broad incumbents are Kayak, Booking.com and Trivago. Emerging players are Skyscanner and Hopper.
Does Hotwire have an API?
No public API is recorded for Hotwire.
What industry is Hotwire in?
Hotwire's product category is Online Travel Agency. Its primary akta.pro industry code is THALAGAD, Online Booking Tools (OBT) & Corporate Booking UX, with a secondary code of THALAHAF, Fraud Prevention, Risk Scoring & Chargeback Management. Its NAICS code is 561510.