When it comes to booking travel, few names carry as much weight as Expedia. As one of the world’s leading online travel companies, Expedia has helped millions of people plan and book their dream vacations over the years. But have you ever wondered who actually owns this travel giant? In this blog post, we’ll explore the history of Expedia, its current ownership structure, and take a closer look at the people who are responsible for making the company tick. Whether you’re a frequent traveler or just interested in the world of business, you won’t want to miss this deep dive into one of the biggest names in the travel industry.
History of Expedia
Expedia was founded in 1996 as a division of Microsoft. The goal was to create a one-stop shop for travelers looking to book flights, hotels, and rental cars all in one place. The original Expedia website launched in 1997 and quickly gained popularity with consumers who were tired of jumping from one site to another to book different aspects of their trip. In 2001, Expedia was spun off from Microsoft and became its own independent company. From there, the company continued to grow and expand its offerings. In 2002, Expedia acquired rival travel website Hotwire, and in 2003 it acquired the travel booking website Travelocity. The company also expanded internationally, launching sites in Canada, the UK, and Australia. Today, Expedia is one of the largest online travel companies in the world, with a presence in over 60 countries.
Current Structure of Expedia
Expedia’s current structure is designed to give travelers a wide range of options when it comes to booking travel. The company operates several different brands, including Expedia.com, Hotels.com, Travelocity, Orbitz, and Hotwire. Each brand has its own unique focus and offerings, with Expedia.com being the flagship site for booking flights, hotels, and rental cars. Hotels.com is focused solely on hotel bookings, while Orbitz is aimed at business travelers. Hotwire offers discounted travel deals to customers who are flexible with their travel plans. Expedia also operates Egencia, a corporate travel management company, and Vrbo, a vacation rental platform. All of these brands are part of the larger Expedia Group, which also includes several other travel-related companies.
Board of Directors
Expedia’s board of directors is responsible for overseeing the company’s strategy and ensuring that it is in line with the interests of shareholders. The board is made up of several individuals with extensive experience in the business and technology worlds. Chairman Barry Diller is a media executive who has held senior roles at several major companies, including Fox and Paramount Pictures. Other board members include Peter Kern, the CEO of Expedia Group, and Craig Jacobson, a partner at law firm Hansen Jacobson. The board is also responsible for appointing the company’s CEO and other senior executives. In recent years, Expedia has seen some turnover in its leadership, with former CEO Mark Okerstrom stepping down in 2019 and Peter Kern taking over as CEO on an interim basis before being named permanent CEO in 2020. Overall, the board of directors plays a crucial role in shaping the direction of Expedia and ensuring that the company remains a leader in the travel industry.
Major Shareholders
Expedia has a diverse group of major shareholders, including institutional investors, mutual funds, and individual investors. According to its 2020 annual report, the largest institutional shareholders of Expedia are The Vanguard Group, BlackRock, Inc., and Capital World Investors, each owning around 10% of the company’s outstanding shares. The top mutual fund shareholders of Expedia are Vanguard Total Stock Market Index Fund and Fidelity 500 Index Fund. In addition to these institutional and mutual fund investors, Expedia also has a significant number of individual investors, with around 70% of its shares held by retail investors. Despite the diverse range of investors, the common thread among them is their confidence in the long-term prospects of the company. As a leader in the online travel industry, Expedia has proven to be a reliable and profitable investment for those who believe in its growth potential.
Leadership
Expedia’s leadership team is responsible for driving the company’s strategic direction and ensuring that it remains a leader in the travel industry. At the helm is CEO Peter Kern, who took over the position in 2020. Kern has a long history with Expedia, having served on its board of directors since 2005. Before taking on the role of CEO, Kern was a managing partner at investment firm InterMedia Partners, where he oversaw several successful investments in the media and technology sectors. In addition to Kern, Expedia’s leadership team includes several other key executives, such as Chief Financial Officer Eric Hart, Chief Strategy Officer Arthur J. Rudolph, and Chief Marketing Officer Shiv Singh. Together, this team is responsible for driving growth, expanding the company’s offerings, and delivering value to shareholders.
Financial Performance
Expedia’s financial performance has been strong in recent years, despite the challenges posed by the COVID-19 pandemic. In its 2020 annual report, the company reported net income of $566 million, down from $1.1 billion in 2019, but still a strong showing given the impact of the pandemic on the travel industry. Revenue for the year was $5.2 billion, down from $12.1 billion in 2019, but still higher than the $4.8 billion the company generated in 2018. Expedia’s financial performance can be attributed to its focus on innovation and technology, which has helped it remain a leader in the online travel industry. The company has invested heavily in artificial intelligence, machine learning, and other technologies that improve the customer experience and make booking travel easier and more convenient. Looking ahead, Expedia is well-positioned to continue its strong financial performance, as more and more consumers turn to online travel booking platforms for their travel needs.
Corporate Governance
Expedia has a strong commitment to corporate governance, with a board of directors that is responsible for overseeing the company’s operations and ensuring that it acts in the best interests of its shareholders. The board is comprised of ten directors, including CEO Peter Kern and independent directors such as Chelsea Clinton and Craig A. Jacobson. The board has established several committees to oversee various aspects of the company’s operations, including audit, compensation, and nominating and governance committees. Expedia has also adopted a code of conduct and ethics that governs the behavior of its employees and executives, and the company is committed to transparency and accountability in all its operations.
Competition
Expedia operates in a highly competitive industry, with several major players vying for market share. Its primary competitors include Booking Holdings, which operates brands such as Booking.com and Priceline, and Airbnb, which has disrupted the traditional hotel industry by offering alternative accommodations. Other notable competitors include Google, which has been expanding its presence in the online travel market, and traditional travel agencies such as American Express Travel and Carlson Wagonlit Travel. Despite the intense competition, Expedia has remained a leader in the industry by focusing on innovation and technology, providing a seamless booking experience, and offering a wide range of travel options to its customers.
Impact on the Travel Industry
Expedia has had a significant impact on the travel industry, both in terms of how people book travel and how travel providers market their products. By offering a one-stop-shop for travel booking, Expedia has made it easier for consumers to plan and book their trips, while also giving them access to a wider range of options than they might find through traditional travel agencies. The company’s focus on technology and innovation has also led to the development of new tools and services that make travel planning more convenient and personalized, such as its virtual agent and personalized travel recommendations.
At the same time, Expedia’s impact on the travel industry has not been universally positive. Some travel providers have criticized the company for its high fees and for taking a large commission on bookings. Others have argued that Expedia and other online travel agencies have contributed to the commodification of travel, reducing it to a series of transactions rather than an opportunity for meaningful cultural exchange. Despite these criticisms, however, there is no doubt that Expedia has played a major role in shaping the travel industry over the past two decades.
Conclusion
As one of the world’s leading online travel companies, Expedia has come a long way since its early days as a division of Microsoft. Today, the company operates a wide range of brands and services, all designed to help travelers plan and book their dream vacations. From its board of directors to its leadership team and major shareholders, there are many different people who play a role in shaping the direction of the company. By understanding the history and structure of Expedia, we can gain a better understanding of how the company operates and what sets it apart from its competitors. Expedia’s commitment to providing a seamless booking experience, along with its focus on innovation and technology, have helped it remain a leader in the travel industry. As we look to the future, it’s clear that Expedia will continue to play a major role in helping people explore the world and make lasting memories. Whether you’re a seasoned traveler or just getting started, you can count on Expedia to be there every step of the way.
Overall, Expedia’s success can be attributed to its ability to adapt and evolve with the changing needs of travelers. From its early days as a division of Microsoft to its current status as a global travel giant, the company has consistently pushed the boundaries of what’s possible in the world of online travel. By continuing to invest in technology and innovation, Expedia is well-positioned to remain a leader in the industry for years to come. Whether you’re booking a last-minute getaway or planning a trip of a lifetime, you can count on Expedia to help make your travel dreams a reality.