The Expedia Makeover Under CEO Peter Kern
10.02.2024 - 02:09
/ skift.com
/ Dennis Schaal
/ Peter Kern
/ Richard Clarke
/ Skift Research
/ Barry Diller
/ Ariane Gorin
In December 2019, Ariane Gorin, president of Expedia Business Services, moderated a fireside chat with Chairman Barry Diller and Vice Chairman Peter Kern at an all-hands employee meeting. Expedia Group had just parted ways with its CEO and CFO, and Kern would soon be named CEO.
On Thursday, in a surprise move, Expedia Group announced that Kern is leaving that post.
Gorin, who has worked at Expedia Group in various executive positions since 2013, will take over as CEO of the company – and it looks vastly different than it did at the time of that employee town hall four years ago.
Here’s a look at Expedia Group when Kern became CEO, which was at the beginning of the pandemic, versus the company today.
In February 13, 2020, Diller characterized the company as “bloated,” and one where the workplace culture was “all life, no work.” That may or may not have been true. But less than two weeks later, Expedia Group, which only months earlier opened a new $900 million headquarters and campus on Elliott Bay in Seattle, laid off 12% of its workforce.
Kern said Thursday that Expedia Group today has 30% fewer employees than it did in 2019, and has closed 100 offices.
In 2019, he said, 30% of employees worked in product and tech. That figure is 50% today.
At the end of 2023, Expedia Group had 17,100 employees in more than 50 countries.
In 2019, Expedia Group had more than 20 brands with many competing against one another and working at cross purposes. Under Kern, Expedia Group designated Expedia.com, Hotels.com and Vrbo as its three core brands. Although it varies by region, Kern said Thursday that the company invests in three or fewer brands in any given region.
Under Kern, the company sold some brands and shut down others. Among them were Egencia, Classic Vacations, SilverRail, Alice, Expedia Group Multifamily, and BodyBuilding.com.
“This wasn’t really a coherent company but more a collection of distinct trading companies with separate brands, strategies, tech stacks and staffs,” said AB Bernstein Managing Director Richard Clarke, referring to the pre-Kern regime. “What he has done to bring it all together is impressive.”
Prior to Kern becoming CEO in 2020 — he’s been vice chairman since June 2018 — Expedia’s workforce to some extent was organized by brand so there was a lot of duplication and inefficiencies. The Hotels.com marketing team would bid against the Expedia.com marketing team in Google auctions, for example.
“We eliminated dependency on 76 different [advertising] agencies around the globe and instead built an entire full-service marketing, creative and media-buying team internally,” Kern said Thursday during a conference call. “We consolidated all performance marketing into one group with unified