When Ariane Gorin steps into the role of CEO at Expedia Group, she will be met with the task of overcoming the challenges within the company’s consumer-facing business. Despite efforts to create a single loyalty program and migrate all brands to a unified technology platform, there has been turbulence in recent years. Gorin acknowledges that while new capabilities were built, the development capacity was limited, affecting the competitiveness of certain brands like Hotels.com and Vrbo. The need to focus on driving traffic, increasing conversion, and enhancing margins through innovative marketing strategies is crucial for the success of Expedia’s consumer business.
Operating under a single platform has brought benefits in terms of scalability and innovation. Expedia Group has been able to conduct various tests and leverage AI across all its brands. However, Gorin highlights that there are still challenges in terms of efficiency. Fine-tuning algorithms to differentiate between shoppers on different brands remains an ongoing process. While there is room for improvement in completing the tech platform, the focus on enhancing traveler experiences through efficient development is a priority for the future success of Expedia Group.
Gorin emphasizes that investments in improving the consumer-facing business will yield long-term benefits for Expedia Group. Despite challenges in certain brands, the company’s B2B business continues to perform well with promising opportunities on the horizon. The focus on AI and personalization of traveler experiences is seen as a key area of excitement for Gorin. The first-quarter results show positive growth in revenue, with an increase in B2B revenue and gross bookings. However, the operating loss and net loss indicate that there are still areas where improvement is needed.
One of the significant challenges highlighted by Peter Kern is the slower than anticipated recovery of Vrbo from its re-platforming. This has impacted the company’s gross bookings and signifies an area that requires immediate attention and strategic planning. The ability to overcome these challenges and accelerate growth in the consumer-facing business will be a key focus for the new CEO, Ariane Gorin.
While Expedia Group faces challenges in its consumer-facing business, there are also opportunities for growth and improvement. The transition to a new CEO brings with it a renewed focus on driving traffic, enhancing conversion, and delivering exceptional traveler experiences. By addressing the inefficiencies in the tech platform and leveraging AI for personalization, Expedia can position itself for long-term success in the competitive travel industry.