Expedia Group Inc (NASDAQ: EXPE) stock price went down soon after company reported worst than expected quarterly results. In the first hours of Friday trading session EXPE shares lost almost 10% of its value, or $1 billion off total market cap.
“The second quarter of 2020 represented likely the worst quarter the travel industry has seen in modern history and Expedia was of course not spared.”- said Peter Kern , Expedia CEO and continued about results “April was very tough for everybody. It was the bottom of the trough. We have seen consistent growth
coming out of that. We were down on a net basis 90% for the quarter, but by June that was less than down 70%. And the lodging side of that was considerably better, down less than 60%. So all of that is a very good trend but still obviously well below anything we’d like to see in the business.”
To keep the positive vibe going on Mr. Kern compared the Travel industry with H2O:”I think travel is like water. It finds its way. If I can’t go international, I’ll go domestic. If I don’t want to fly, I’ll drive. If I don’t want to stay in a hotel, I’ll stay in an alternative accommodation.”
With that being said, both Expedia CEO and CFO noted that best performer (within Expedia Group) was VRBO (vacation rentals sites owned by Expedia) with booking trends remaining really strong through the pandemic.
Asked about the traffic mix in terms of pay traffic versus direct to VRBO Mr. Kern said that :”VRBO has been the beneficiary of a huge amount of direct traffic and essentially organic traffic” and added that “VRBO had a ton of business and has been a great leader” for Expedia in recovery.