Expedia buys rival Orbitz for $1.6bn

New York - US online travel operator Expedia announced plans on Thursday to buy rival Orbitz Worldwide for about $1.6bn, in a move that further consolidates the sector.

Expedia will pay $12 in cash for each Orbitz share, in the takeover approved by the companies' boards of directors.

"We are attracted to the Orbitz Worldwide business because of its strong brands and impressive team," said Dara Khosrowshahi, Expedia's president and chief executive.

The deal includes the Orbitz online booking site as well as brands such as CheapTickets, e-bookers and HotelClub.

The announcement comes less than a month after Expedia announced the purchase of rival Travelocity in a $280m deal.

The moves come amid increased competition in the travel sector from websites such as Priceline-owned Kayak and others which scan the Internet for the best deals.

Expedia operates other travel sites including Hotels.com and Carrentals.com.