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Airline tickets are cheap right now. You can book roundtrip airfare in August between New York and Los Angeles for $62, according to a search on travel website Kayak (BKNG) For less than $200, you can get round-trip airfare between Miami and dozens of destinations across Latin America and the Caribbean. Airlines have slashed the price of tickets as demand plummeted in the face of the global coronavirus pandemic.
In a surprise move, Booking.com chairwoman Gillian Tans has extended her employment contract to 2021, a year longer than expected, Skift has learned. The move comes as Amsterdam-based Booking.com declined to apply for an extension of Dutch government relief, a move that likely means layoffs are coming. “Our decision not to apply for an extension […]
One of my favorite expressions, which seems particularly appropriate as U.S. cities burn anew, is “a luta continua,” Portuguese for “the struggle continues.” Because 52 years after the 1968 uprisings and riots, which were triggered by the assassination of Martin Luther King Jr. and so much more, one can make the argument that not much […]
The sports offers two comeback lessons in one: the fight to regain cultural relevance and the comeback story of mom-and-pop alleys shuttered by the pandemic. More reason for hope: Disney World is opening.
Airbnb Plus, the company's vision for homes that are certified for quality standards and design acumen, has been all but abandoned two years after launching as support and product teams have been reassigned or laid off, Skift has learned. The company gave itself a goal of having 75,000 Airbnb Plus listings in the program's launch […]
Brown Advisory recently released its Q1 2020 Investor Letter, a copy of which you can download below. The Large-Cap Growth Fund posted a return of -13.05% for the quarter, outperforming its benchmark, the Russell 1000 Growth Index which returned -14.10% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for […]
As part of its reorganization efforts, Expedia Group is winding down its multifamily building short-term rental business that it began with the 2018 acquisitions of Pillow and ApartmentJet, Skift has learned. Expedia Group bought the two companies for around $54 million, and combined them, along with some staff from its Vrbo subsidiary, to create Expedia Group […]
Tuesday morning brought a big upward move to the stock market, largely in response to growing optimism about the reopening of the U.S. economy as fears about the coronavirus pandemic seem to be subsiding. The Nasdaq Composite (NASDAQINDEX: ^IXIC) lagged somewhat behind broader market benchmarks, but it was still up 0.7% shortly before noon EDT. The Nasdaq 100 Index of larger Nasdaq-listed stocks was up a more modest 0.4%.
Investors with skin in the travel industry game are hurting this year. Online travel specialists aren't tethered to a single brand or even industry niche, but those models are naturally taking it on the chin. Expedia (NASDAQ: EXPE) -- the world's second-largest online travel portal with $11.7 billion in trailing-12-month revenue -- entered the holiday weekend trading 46% below its previous high.
Bireme Capital recently released its Q1 2020 Investor Letter, a copy of which you can download below. In the letter, the hedge fund said that its flagship U.S. equity strategy, Fundamental Value, returned -26.4% on a net basis. The fund underperformed its benchmark, the S&P 500 Index which returned -19.4% in the same quarter. You […]
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the first quarter. You can find articles about an individual hedge fund's trades on numerous financial […]
There have been whispers — mostly uninformed — that because private equity firm Silver Lake recently invested $1.2 billion in Expedia Group and $1 billion in Airbnb that the two rivals might have a merger in their future plans. Newly appointed Expedia Group CEO Peter Kern, who has private equity experience of his own as […]
Roku reports seeing major viewing growth for ad-supported news and entertainment content, and PayPal suggests its remittance business is hitting an inflection point.
(Bloomberg) -- Expedia Group Inc. followed its peers in the online travel industry in witnessing a staggering decline in business since the spread of the coronavirus, with total gross bookings down 39% in the first quarter.The Seattle-based company reported total gross bookings of $17.89 billion, including a decline of as much as 90% in the second half of March as the pandemic took hold. Revenue fell 15% to $2.21 billion, its first quarterly drop in eight years. The adjusted loss before interest, taxes, depreciation and amortization was $76 million, or 1.83 a share, compared with a loss of 27 cents a year earlier. Analysts had projected a loss of $1.45 a share on $2.11 billion in sales.Chief Executive Officer Peter Kern said Expedia has seen cancellations stabilize and growth return in May as parts of the world emerge from pandemic lockdowns and people start to think about their summer holidays. One of the businesses leading the improvement is Vrbo, the company’s vacation rental unit that competes directly with Airbnb Inc.“We’ve seen a higher bounce back from Vrbo,” Kern said in an interview, including an uptick in demand from travelers renting a house within driving distance of their own homes rather than flying or booking a hotel.In March, Expedia withdrew its full-year forecast as stay-at-home orders began to halt flights and travel around the world. The company had already been struggling, cutting 3,000 jobs in February to simplify what had become a “bloated organization,” as it faced increasing pressure from Google in advertising and nimble startups such as Airbnb. As part of the company revamp, Kern, then vice chairman, took over as CEO in April. At the same time, Expedia announced it was raising $3.2 billion as the impact of the coronavirus began to weigh on the industry. In addition, the company made a “significant reduction” in costs for marketing and discretionary expenses and deferred certain capital expenditures, it said in the earnings report.“We already had pretty ambitious goals about how we would simplify and strengthen the business,” Kern said. “This creates an energy and an ambition that is hard to get when you are just in regular old fine times.” The pandemic crisis could help Expedia “turbo charge“ through some difficult changes, he said.Expedia’s shares gained about 3.7% in extended trading in New York after closing at $79.58. The stock has dropped 26% this year compared with an 8% decline of the S&P 500.As the pandemic raged in March, Expedia saw “unprecedented” cancellation volume and moved to build self-service options for customers to cancel lodging and air bookings without speaking to an agent. As a result, cancellation inquiries for air travel managed without an agent increased to more than 95% in April from 65% in February.“If there was an industry on the front lines bearing the full impact of coronavirus, I would say it’s travel,” said Naved Khan, an analyst at Suntrust Robinson Humphrey Inc. “It is one of the sectors that has been hurt the most and is likely to lag during the recovery because until there is a vaccine people will limit their travel activities.”Airbnb and TripAdvisor Inc. cut a quarter of their workforces and Booking Holdings Inc. has been forced to apply for government aid.Kern acknowledged his appointment as CEO came at a “messy time,” but said it has also provided a rare opportunity for sweeping action. “A lot of friends and business acquaintances have been like, ‘Wow, you really stepped into it in a very tough time,’” he said. “Not a lot of fun is being had, but on the other hand I see this as a crystallizing moment of change for this company.”(Updates with comments from CEO beginning in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stocks are hopping Monday, with shares of online travel agencies (OTA) holding company Booking Holdings (NASDAQ: BKNG) up a whopping 14% in noonday trading, and rival Expedia Group (NASDAQ: EXPE) doing even better -- up 16%. Sabre Corporation (NASDAQ: SABR), which operates a business-to-business...er, business...providing hotel, airline, and rental car inventory, pricing, and availability data to other OTA companies is performing best of all, up a staggering 19.5%!
Asian online travel giant Agoda is laying off 1,500 workers, a downsizing that CEO John Brown promises is the first and final cut he will be making as a result of the coronavirus crisis. The Booking Holdings-owned Asian travel brand has held off staff cuts for as long as it could, first reducing costs across […]