A company that worths more than $ 15,8 billion without a CEO and with no profit announced on its latest announcements. That’s the current situation of Expedia Group, the owner of the brands Hotels.com, Trivago, and Vrbo and one of the biggest travel companies worldwide. Information from the media outlet NeoFeed.
The company’s crisis started after several mistaken decisions made by its last CEO, Mark Okerstrom. It started in a failed try of adopting a management strategy similar to Booking.com until the decision of changing the name a brand from HomeAway to Vrbo, which was pointed out as one of the CEO’s worst mistakes since the impact on the Google search results of the brand that is Airbnb‘s main competitor were much higher than expected.
In addition, Trivago has just been condemned by an Australian court for the charge of misleading advertising. The judgment took into consideration that the platform promised to offer the results only considering the lower prices on travel packages, but the algorithm of the website preferred hotels or companies that were paying the most expensive fees.
As a result, Expedia Group’s stocks went down 9,8% going from $ 139,42 to $ 95,67 and the resignation from Okerstrom and the company’s CFO at the moment Alan Pickerel. And the company started a desperate journey to go back on track.
The chairman of the holding that controls the group, Barry Diller, is the current responsible for this challenge and since its first day leading, the stock’s value went up 6%.
Even so, there is a long way until recovering the company profitability and that’s why going for sale isn’t a dismissed possibility, according to NeoFeed, but also not a confirmed strategy too. Even so, Amazon could be one of the names that could be interested in buying the group if the offer really becomes a reality.
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Until them, what we can expect for sure is that Expedia Group will need to live a huge restructuring process that might include a lot of resignations and costs reduction before start writing a new chapter on its story.