How did the coronavirus (COVID-19) pandemic impact Expedia, Inc.?

During the global coronavirus (COVID-19) pandemic in 2020, travel was severely restricted as countries tried to contain the virus by enacting stay-at-home orders and limiting travel across international borders. As a result, the travel and tourism sectors were heavily impacted. During the first weeks of the pandemic, Expedia’s short term rental bookings fell sharply by over 80 percent. The revenue lost by travel agencies in 2020 reflected the impact of drastically reduced bookings, and Expedia, Inc.’s revenue fell to its lowest value in the last five years. Similarly, huge losses were reported when looking at Expedia, Inc.’s net income that year. Expedia reported roughly 2.6 billion U.S. dollars in net income loss, its greatest loss in the last decade, and even greater than the company’s loss during the 2008 financial crisis.

Expedia, Inc.’s U.S. consumers

As an American based company, U.S. consumers make up a large part of Expedia, Inc.’s customer base. In 2019, Expedia, Inc.’s revenue in the U.S. alone reached nearly seven billion U.S. dollars, though this fell by almost half in 2020 due to the effects of COVID-19. With many different competitors in the online travel market (Booking Holdings, Tripadvisor, Ctrip), customer satisfaction is an important measure of a company's success. The American Customer Satisfaction Score (ACSI) of Expedia, Inc. was 77 in the most recently measured year - generating an equal level of consumer satisfaction as the overall internet travel website industry’s ACSI score in the same period. Expedia, Inc. is also one of the most widely used online travel booking services in the U.S., with over 28 percent of respondents indicating that they booked a flight with Expedia in the last year, over double the amount that booked with other online providers.

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