Expedia is one of the world's top travel management companies, and now dominates the online market as the owner of multiple sites including Hotels.com, Trivago, Travelocity and Orbitz. It was spun off as an independent company in 2005, along with a collection of other travel services businesses previously owned by InterActiveCorp. Although it owns a number of different properties, the core brand within the group remains the main Expedia service. It is the clear #1 in online travel bookings, with over 40% share of the US market, ahead of main rival Booking Holdings. The two companies between them now have an effective duopoly of the online travel market in developed markets, and combined share of almost half of total global bookings. Expedia remains the group's flagship site, but metasearch aggregator Trivago has been the fastest growing. It is separately quoted but controlled via a majority stake. Others now under the group umbrella include Hotwire, vacation rental service Vrbo (previously HomeAway.com), corporate travel site Egencia, CheapTickets and eBookers, Wotif, CarRentals.com and luxury specialist Classic Vacations. Dara Khosrowshahi was CEO of Expedia from 2005 until he joined Uber in 2017. He was replaced by Mark Okerstrom, until he was ousted two years later following a boardroom clash over strategy. The company's CFO was also replaced. Peter Kern, previously vice chairman, was finally named as CEO in April 2020. Net revenues hit a record high of $12.1bn in 2019, before crashing by more than half during 2020 as a result of the impact of Covid on global travel, forcing the group to raise additional cash through a private equity placing. Gross bookings fell from $109bn in 2019 to just $36.8bn. Revenues plunged to just $5.2bn, and the $565m profit for 2019 turned into a $2.7bn net loss. In a normal year, lodging accounts for around 70% of income, while ad sales (mainly on Trivago, where hotels can boost their presence with advertising) contribute more than $1.1bn. Following a sale of some of his shares in 2020, IAC founder & chairman Barry Diller and his family ended the year with around 29% voting control over the group (down from 55% previously).
Capsule checked 24th March 2021
Adbrands Account Assignments tracks account management for the world's leading brands and companies, including details of which advertising agency handles which accounts in which countries for major markets.
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Who are the competitors of Expedia? See Hotels & Travel index for other companies and brands
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Marketing expenditure for Expedia? See ranking of declared expenditure
Historical profile information for Expedia
Adbrands Daily Update 16th Sep 2020: "Let's Take A Trip". It's tricky selling vacation trips when there aren't that many places you can go, even with a mask on, but Saatchi satellite Team One does a great job with this playful and imaginative spot for Expedia. This couple are on holiday in their own home even before they book at trip to the "Hotel Royale" in Whereverville. Pity the poor actors who spent what must have been several days lying on their backs in innumerable uncomfortable positions while the animators rearranged the furniture.
Adbrands Daily Update 4th Dec 2019: Expedia Group ousted CEO Mark Okerstrom and CFO Alan Pickerill following a boardroom clash. "Earlier this year," said chairman and controlling shareholder Barry Diller in a statement, "Expedia embarked on an ambitious reorganization plan with the goal of bringing our brands and technology together in a more efficient way. This reorganisation, while sound in concept, resulted in a material loss of focus on our current operations, leading to disappointing third quarter results and a lacklustre near-term outlook. The Board disagreed with that outlook, as well as the departing leadership's vision for growth, strongly believing the Company can accelerate growth in 2020. That divergence necessitated a change in management." Diller will himself oversee day-to-day operations, assisted by vice chairman Peter Kern, until new leaders can be appointed. A big issue for all online travel agencies is a change in the way Google presents travel-based search results, which makes third-party listings less visible.
Adbrands Weekly Update 31st Aug 2017: Uber's board selected Expedia CEO Dara Khosrowshahi as their new CEO, taking over from founder Travis Kalanick, who stepped down in June following pressure from major investors. Other even more prestigious names had been in the running. As late as last Friday, GE's Jeffrey Immelt and HPE's Meg Whitman were also among the finalists for the position. However, Khosrowshahi's experience in both travel and technology won the day against those two better-known executives. Board members were also no doubt influenced by the fact that he has presided over a sevenfold increase in Expedia's market cap since he led its spin-off from IAC in 2005. In his first address to Uber managers, Khosrowshahi said that he aims to take Uber public within the next 18 to 36 months. Meanwhile, Expedia promoted operations and finance chief Mark Okerstrom to succeed him as CEO. Khosrowshahi will remain a director of the travel firm.
Adbrands Weekly Update 12th Jan 2017: Ads of the Week "Get HomeAway From It All". Thinking about holidays? This great global campaign from Saatchi & Saatchi London might just swing your decision in favour of HomeAway.com. But if you live in the US or Europe we'd better warn you upfront not to get too attached to the property featured in the ad, because it's not just HomeAway but also FarAway. In New Zealand to be precise. Nice to see Saatchi's London office delivering an ad for an American company that works on a truly global basis. Enjoy!
Adbrands Weekly Update 12th Nov 2015: Expedia continues to hoover up the remaining independents in the international travel and hospitality industry. Its latest bolt-on is vacation rental service HomeAway.com, the main international competitor to Airbnb. Expedia will acquire the business for $3.9bn. Other recent acquisitions include Orbitz and Travelocity, both of which joined the group portfolio earlier this year. "We do think we can bring substantial expertise to the HomeAway team," said Expedia CEO Dara Khosrowshahi. "We think we can help them avoid a bunch of the mistakes we've made" in online bookings.
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