Expedia turned this weakness into a strong one in the first quarter


What has been hitting the Expedia Group for a few years is that it is very US-centric, but the online travel agency changed it strongly in the first quarter – at least temporarily.

Referring to Kovid’s unequal global trajectory as a “contrast study”, Expedia Group CEO Peter Kern told financial analysts on Thursday that “the company has benefited greatly from our holiday rental business and our domestic US business, but other parts of the business are still challenging.”

So in the first quarter of 2019, before the pandemic devastated the world, the Expedia Group earned 62 percent of its revenue from the US, but in the first quarter of 2021, because the US was relatively open, and Europe and most parts of Asia were locked up, the Expedia Group accounted for more than 80 percent of its revenue domestically. Earned in

Join us at the Skift Short-Term Rental and Open Conference on May 19th

“We are already seeing booking trends beyond the 2019 level for leisure destinations, beaches, mountains, etc.,” Kern said during the first quarter earnings call. “And it goes not only for vacation rentals, but also for traditional accommodation.”

Kern said Verbo, which is the focal point for the Expedia Group’s vacation rental business, has taken market share in all its strongholds.

Speaking of a study, by contrast, booking holdings, which account for 50 per cent of revenue from Europe, Reported Wednesday The Expedia Group said on Thursday that the first quarter of 2021 room nights fell 54 percent compared to the first three months of 2020, with only a 47 percent decline.

Expedia Group reported a net loss of $ 606 million in the first quarter of 2021, compared to a net loss of $ 1.3 billion in the previous year. Revenue fell 44 percent to $ 1.24 billion.

Google and other metas are playing low on holiday rents

Kern said the Expedia Group would take care not to overspend on premature marketing several months ago, after which the company invested heavily in hiring marketing and vacation rental hosts in the first quarter. For travel, at least in some parts of the world.

“But in the first quarter, we changed that bias and especially in the back of the quarter, with investment and demand waves coming forward, we’re coming,” he said. Said referring to marketing.

The Expedia Group spent $ 647 million on sales and marketing in the first quarter, traditionally $ 500 million in the fourth quarter of 2020 over time.

The company has spent a lot of money on Vrbo brand promotion, mainly using online video, and Xpedia.com is in the early stages of its own brand marketing campaign, the largest of the year.

“We relaunched our Orbitz brand with a focus on LGBTQIA +, and as we try to differentiate brands and really focus on who each brand is and what their market is, it’s kind of a push again,” Kern said. “And later this month, a great summer ad campaign for Vrbo is coming, and we hope it’s really effective.”

Part of the strategy is to underestimate marketing in comparison-shopping or meta search engines in the hope of attracting more direct bookings and better returns on advertising costs.

“The last time we mentioned in our last call that Google had stopped producing meta for vacation rentals,” Kern said of the Expedia Group’s exit from Google Vacation Rental. “In fact, in this last quarter, we have pulled back from other holiday rental meta players and so far, the results have been excellent and good or better or higher than we expected in terms of the revenue we can get. Direct bookings and other routes of traffic more efficient. ”

A spokesman for Expedia Group declined to say which holiday rental meta search engines the company had exited. Vrbo still supplies tripodizer with vacation rent, a tripodizer spokesperson confirmed.

Expedia to acquire 14% stake in Amex GBT

Earlier this week, American Express Global Business Travel a Agreement To acquire Expedia Group’s Business Travel Brand Agency.

Expedia Group will acquire a 14 percent stake in American Express Global Business Travel worth $ 750 million, according to the Expedia Group’s Chief Financial Officer. He said the deal would expire in 9-12 months.

The two companies have agreed to a 10-year agreement with Expedia Partner Services to provide accommodation for Amex GBT. Hart said in 2019 Business Travel Volumes that the deal will generate revenue of $ 60 million a year.

Join us at the Skift Short-Term Rental and Open Conference on May 19th


Source link

Leave a Comment