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Monday 3 August, 2020
TOP STORY
Expedia's second quarter bookings drop 90 per cent
Expedia Group has announced an 82 per cent drop in revenue for the second quarter of 2020, and a 90 per cent decline in total gross bookings compared to the same period in 2019.
If you missed our last newsletter....
1. Apple threatens to drop Airbnb from App Store
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3. Ctrip considers going private and Nasdaq delisting
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5. HalalBooking announces partnership with Expedia
Editor's comment
03•08•20 Welcome to the latest ShortTermRentalz newsletter!
• Expedia's announcement last week that its revenue had dropped 82 per cent in the second quarter of 2020, and that its total gross bookings for the three months leading up to 30 June had declined 90 per cent compared to 2019 levels, was the strongest indicator yet of the impact the Covid-19 pandemic is having on businesses in the global travel sector.
CEO Peter Kern has already called the second quarter results "the worst the travel industry has seen in modern history", a point exemplified by the fact that Expedia and other OTAs such as Booking.com, Airbnb and TripAdvisor have had to make sweeping cuts across their teams or seek emergency funding.
The revelation that Expedia's rental unit Vrbo is seeing a steady recovery should provide hope for short-term rental operators who are trying to attract domestic bookings, especially in rural locations such as national parks, lakes and mountains. It suggests the group will continue to promote Vrbo to drive vacation rentals as the best accommodation choice for city dwellers seeking more security away from crowded urban settings.
However, the industry should heed Kern's words when he said the entire vacation rental sector was still in for a "bumpy and inconsistent recovery". While certain markets are seeing steady recoveries or sharp surges in bookings, the real impact of the coronavirus on many businesses will not be noticeable until the peak tourism season has passed and companies will need to have strategies in place for further downturns, given the "volatile" virus numbers and the threat of more regional restrictions and strict quarantine measures.
Another OTA that is increasingly optimistic about the rebound of travel is Jakarta-based Traveloka, which this week raised $250 million to enhance its operations and "restore confidence in the resilience and the viability of the regional travel industry". Citing "encouraging" recoveries in key markets such as Thailand, Indonesia and Malaysia, Traveloka's investment suggests there is growing momentum for regional travel in Asia, which will result in short-distance staycations while travellers remain cautious over their holiday choices.
• Don't forget to register for the next in our Urban Living webinar series, which takes place on Wednesday 5 August, at 14:00 BST, when the panel will be discussing the unknown GDV [Gross Development Value] and its impact on funding new development projects.
Joining guest host Beth Fisher, editor, Bridging & Commercial and Development Finance Today, will be:
• Emma Burke, Deal Origination, Maslow Capital LLP
• Andrew Hosford, managing director, Pure Structured Finance
• Russell Kett, chairman, HVS, London
• Patrick Smith, investment director, Frogmore
Click here to register for the no cost webinar.
If you have a story you want us to tell the industry, please click here and get involved with the community by joining our ShortTermRentalz LinkedIn group here.
Paul Stevens, news editor
paul@internationalhospitality.media
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