Expedia's Stock Plummets as CEO Resigns and Holiday Bookings Fall
Expedia Group Inc. announced Ariane Gorin as the new CEO, replacing Peter Kern, and reported lower-than-expected holiday bookings. Kern, who took over during the pandemic, will remain as vice chairman. The unexpected leadership change may signal strategic struggles. Expedia's focus on technical upgrades and loyalty program revamp under Kern didn't yield the expected post-pandemic travel boom, leading to a loss of market share to rivals like Airbnb. The new CEO, Gorin, has been leading a division that sells advertising and travel technology to corporate clients and has shown strong financial growth. Expedia plans to increase marketing expenses to compete with Airbnb and Booking. The stock fell 13% in extended trading following the news.