SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549


                                   FORM 8-K
                                CURRENT REPORT

                    Pursuant to Section 13 or 15(d) of the
                        Securities Exchange Act of 1934


        Date of Report (Date of earliest event reported): April 2, 2001
                                                          -------------



                                 Expedia, Inc.
               --------------------------------------------------
               (Exact Name of Registrant as Specified in Charter)


                                   Washington
               --------------------------------------------------
                 (State or Other Jurisdiction of Incorporation)


                                   000-27429
--------------------------------------------------------------------------------
                            (Commission File Number)


                                   91-1996083
--------------------------------------------------------------------------------
                       (IRS Employer Identification No.)


                        13810 SE Eastgate Way, Suite 400
                               Bellevue, WA 98005
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)
                                   (Zip Code)

      Registrant's telephone number, including area code:  (425) 564-7200
                                                           --------------

                                      N/A
--------------------------------------------------------------------------------
         (Former Name or Former Address, if Changed Since Last Report)


Item 5.  Other Events.

On April 2, 2001, Expedia, Inc. issued a press release indicating that it had
reached an agreement with Northwest Airlines and KLM.

Item 7.  Exhibits.  The following items are attached as exhibits hereto:

Exhibit 99.1  Press release of Expedia dated April 2, 2001.

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                         EXPEDIA, INC.


                         /s/  Gregory S. Stanger
                         ---------------------------------------------------
                         Name:   Gregory S. Stanger
                         Title:  Vice President and Chief Financial Officer


Dated: April 6, 2001

                                       2