Expedia Launches a $275 Million Partner Recovery Plan That's Very Different From Airbnb's
Skift Take
Airbnb would have been eviscerated had it focused on a relief package for hosts that was primarily marketing credits. Expedia's recovery plan for partners isn't philanthropy, but although the company will likely take a revenue hit, it will benefit from increased partner engagement as the travel industry bounces back.
Two months after Airbnb rolled out a controversial $260 million coronavirus relief package for hosts, rival Expedia Group is slightly upping the ante with an estimated $275 million recovery package for hotels, destinations, and owners and operators of alternative accommodations.
One of the common denominators in their respective programs is both companies attracted funding from private equity firms, including a mutual minority partner, Silver Lake, which helped boost resources to be in a position to fund relief efforts.
To be sure, though, Expedia and Airbnb's programs are very different.
The main planks of Expedia Group's effort, which includes a projected $250 million worth of marketing credits, reduced and delayed commission payments for hoteliers, as well as $25 million in credits from Expedia Group Media Solutions for destinations' co-op advertising campaigns.
Specifically, the Expedia Group plan includes:
Expedia Group will take 25 percent of the compensation it earned from a property in 2019, and turn it into marketing credits if the property chooses to participate. The company will reduce its commissions from partners by 10 percent for three months, and extend pay-at-the hotel compensation for 90 days after the stay. The "credits," which would range from $200 at a minimum to $100,000 maximum, should not be confused with credit cards that require repayment, as some international partners e
