Expedia Group is facing challenges as they undergo a massive transformation led by Peter Kern, who is stepping down as CEO. The company recently lowered its outlook for gross booking value and profit margin expansion due to issues at its vacation-rental brand Vrbo and the switch to a new loyalty program at Hotels.com. Despite completing a tech migration plan to bring many of its brands onto one platform, the benefits have yet to materialize. Expedia Group experienced a widespread global outage last weekend due to a backend software issue, adding to their list of challenges.
The tech migration has been a disappointment for Expedia Group, with delays in Vrbo’s integration leading to lower marketing spend and postponed benefits. Kern has accomplished a massive transformation of the company during his time as CEO, consolidating teams and systems to streamline operations. Despite initial optimism about the platform migration and the company’s technological advancements, Expedia Group has faced setbacks and challenges over the past year, leading to a decrease in share price and employee layoffs.
Expedia Group’s officials remain optimistic about the future, pointing to a 40% increase in membership in the company’s loyalty program year-over-year. The new multi-brand loyalty program, One Key, has shown promise in capturing new travelers and driving cross-shopping across different brands. Expanding internationally and launching a website in the United Arab Emirates this month, Expedia Group sees potential for growth outside of North America where progress has been slower. Despite the challenges faced by the company in the past year, they are looking towards the future with optimism and a focus on long-term growth.
Kern’s leadership during the pandemic and the subsequent transformation of Expedia Group have been instrumental in shaping the company’s future. By eliminating outdated brands and restructuring internal teams, Kern has paved the way for a more streamlined and efficient operation. The loyalty system and various tech stacks have been consolidated to improve customer experiences and drive growth. Despite the challenges and setbacks faced in the past year, Expedia Group remains committed to its long-term vision and is optimistic about its ability to bounce back from recent difficulties.
The recent changes at Expedia Group, including the shift in leadership and completion of the tech migration plan, have not yet resulted in the expected benefits for the company. While officials remain confident in the long-term potential of these changes, investors and analysts have expressed concerns about the company’s outlook. Expedia’s share price has declined significantly, reflecting the market’s uncertainty about the company’s future performance. Going forward, Expedia Group will need to address the challenges it faces, including issues related to the tech migration plan and recent outages, to regain investor confidence and drive growth in the coming years.
