OTAs Expedia and Booking.com have cut teams and each drawn in more than USD3bn, to give them enough cashflow to survive the coronavirus shutdown.
The cutbacks and cash calls come as Expedia is already into a restructuring, under new leadership. But for Booking, an adjustment to the effective halving of revenues has been more painful, with substantial divisional layoffs.
It was in February that Expedia cut 3,000 from its workforce, as the group looked to start streamlining its business. Ahead of concerns over coronavirus, chairman Barry Diller had dismissed former CEO Mark Okerstrom, and had taken over the reigns.
As coronavirus hit business, the group agreed a debt and equity deal to inject USD3.2bn, with backers Apollo Global Management and Silver Lake Partners. New CEO Peter Kern, and CFO Eric Hart were also appointed. Kern, vice chairman of the board since 2018, had previously headed Tribune Media, while Hart is an 11-year Expedia veteran, and had been acting financial head since the departure of his predecessor Alan Pickerill.
Diller said of Kern: "In these last five months, he has shown outstanding leadership in all aspects of the business, first in a wide reorganisation and then dealing with the impact of the corona crisis on our business."
Gross bookings for the first quarter were down 39% to USD17.88bn, while room nights booked fell 14%, though revenue per night was up 5%. Gross bookings at the Trivago division were down 35%

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