Expedia CEO Admits Tours Business Is Underfunded
Skift Take
Expedia and Ctrip are the two large online travel companies that have so far not acquired a technology partner to foster the growth of their tours and activities' businesses. GetYourGuide argues that these tech/connectivity companies should remain independent, but how long will it be before some of these smaller companies get scooped up?
Expedia Group has operated concierge desks in popular tourism destinations such as Hawaii and Orlando, and has sold tours and activities for around 15 years, but the company hasn't prioritized the sector, and is far behind industry leader TripAdvisor.
In a fairly candid assessment during Expedia's recent second quarter earnings call, CEO Mark Okerstrom conceded that his company's tours and activities business has been "under-funded" because of Expedia's traditional focus on its lodging business.
"This is one of these products that just has a lot of potential, but in a big business like ours, where lodging ends up really in the roof, sometimes these things get underfunded," Okerstrom said in response to an analyst's question. "We are putting more capital into it right now and we're optimistic that it can be a bigger driver going forward."
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