Ariane Gorin’s changes in strategy at Expedia Group seem to have had an impact on former CEO Peter Kern’s departure from the board. Kern relinquished his role as vice chairman and exited the board, citing the success and speed of the recent management transition. Gorin took over as CEO in May, replacing Kern who had been CEO since 2020 and had been a member of the board since 2005.
During Gorin’s four months as CEO, she has made some significant changes to the company’s strategy, including pausing the global rollout of Expedia Group’s One Key loyalty program. This program, a key component of Kern’s tenure, allowed members to earn and use rewards across various Expedia brands. Gorin noted that in some international markets, not all three brands were available, making the program less effective. Additionally, she mentioned that the program diluted the rewards of Hotels.com’s existing program, causing a loss of competitiveness.
Gorin has also emphasized the need to fine-tune the tech platform consolidation that was started under Kern, particularly to aid in the recoveries of Vrbo and Hotels.com. Expedia Group’s second quarter performance was strong, with Expedia.com outperforming competitors in room night growth. However, Vrbo and Hotels.com still lag behind in performance. Despite Kern’s departure, former CEO Dara Khosrowshahi remains on the board.
Expedia Group has not appointed a replacement for Kern on the board, leaving it with 12 directors including six women, Gorin among them, and six men. The decision not to replace Kern also means the board will no longer have a male majority. The statement announcing Kern’s exit did not include any language suggesting a disagreement with management or the board, unlike a previous departure from the board in June 2023. Barry Diller remains the board chairman and the company’s senior executive.
Overall, Ariane Gorin’s changes in strategy at Expedia Group have led to the departure of former CEO Peter Kern from the board. Gorin’s decision to pause the global rollout of the loyalty program and focus on fine-tuning the tech platform consolidation seems to have played a role in Kern’s exit. The company’s strong second quarter performance, with Expedia.com outperforming competitors, shows potential for success under Gorin’s leadership. The composition of the board, with a more balanced ratio of men and women, reflects a positive change in the company’s governance structure.
