While Expedia has quietly reworked how its hotel listings are displayed for users, it’s not being bashful about ramping up its corporate travel business in 2016 and finishing the integration of Orbitz for Business into Egencia.
“Our goal is to migrate the vast majority of our Orbitz for Business clients onto Egencia platform before year’s end,” said Expedia CEO Dara Khosrowshahi on the company’s most recent earnings call.
Khosrowshahi also said Egencia signed on another $1 billion in corporate business last year, and is looking for corporate travel to become more complementary to its leisure travel offerings.
“Obviously we are very strong in leisure travel, corporate travel we think it’s an enormous opportunity,” said Khosrowshahi. “It’s a higher yield customer sets that our suppliers favor. The demand patterns are quite complementary of leisure demand patterns and we want to get bigger, we want to scale and we see growth ahead for Egencia.
In terms of global demand, however, Egencia is seeing some softness in Europe and the Nordics, as a result of its acquisition of Norway-based TMC VIA Travel in 2012. While some clients are holding back spend slightly, the company isn’t predicting a steep drop in corporate travel spending.
“Corporate transactions look good, we’re not seeing very significant spending cuts one way or the other like we saw a couple of years back,” said Expedia CFO and executive vice president of operations Mark Okerstrom. “The revenue per transactions or gross booking per corporate transaction is down a bit, and we think that’s just cautious practice from some corporations out there trading down call it from premium class to economy class or taking a train instead of taking a plane. But those are I would say on the edges, we’re not seeing some big theme one way the other as far as corporate travel changing significant one way the other.”