Expedia stock falls on sudden CEO change
The change in leadership caught the market by surprise and it could signal another struggle over strategic direction at the OTA
Expedia Group named Ariane Gorin as chief executive officer of the online travel company, succeeding Peter Kern, who has been in the role since 2020. Gorin, who has been an executive at Expedia since 2013 and most recently was the president of the enterprise division, will take the helm May 13, the company said.
Key takeaways
- The change in leadership caught the market by surprise and it could signal another struggle over strategic direction at the Seattle-based travel booking website;
- But Expedia had already been struggling and Kern was given the job by Chairman Barry Diller after the previous CEO and chief financial officer were ousted following a clash with the board over a disappointing growth outlook;
- Under Kern, Expedia has spent the past two years focusing on technical upgrades and undertaking a long-awaited revamp of its loyalty program across its various platforms;
- Expedia hasn’t benefited in the way some of its rivals have from a post-pandemic boom in travel. The shift in consumer demand toward urban markets and shorter stays wasn’t the boon to Vrbo it was for Airbnb. Expedia also doesn’t have the same international reach as Airbnb or Booking Holdings.
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