Expedia Group commits $275 million to rescue travel partners
The group’s global programme will stimulate recovery and alleviate financial pressures
Online travel giant Expedia Group has announced it is committing US$275 million to help its partners recover from the damaging repercussions of COVID-19.
Summer months are usually when the travel floodgates open for most of the world, travel restrictions, however, have dried up the industry and left many companies helpless. According to research by Expedia Group in April, its lodging partners want support from online travel agencies (OTAs) in four key areas. There are demand trends insights on leisure and domestic travel; investments in marketing and demand generation for travel and destinations; increased visibility on Expedia Group's sites; and financial relief.
"There is no 'one-size-fits-all' plan for recovery. Restoring travel will take an unprecedented level of partnership across public and private sectors, and a deep understanding of what our partners need," said Expedia Group president for Travel Partners Group Cyril Ranque Expedia Group. "This recovery program is the first step in our long journey to rebuild a more resilient, inclusive, and sustainable global travel ecosystem."
Expedia’s recovery programme consists of three components. First is Expedia Group’s commitment of $250 million in marketing credits and financial relief. For each partnered property taking part in the programme, the company will reinvest 25% of the compensation earned in 2019 from the property into marketing credits for use with Expedia Group. The company is also reducing its compensation on all new bookings made within the three-month program period, regardless of the actual stay dates. Expedia Group is extending payment terms for Hotel Collect bookings to 90 days to provide additional financial relief.
Secondly, Expedia Group Media Solutions is opening a $25 million fund to help travel destinations. The fund aims to help destination and supply partners with their advertising and marketing campaigns.
Finally, to help furloughed workers in the industry, Expedia has created a training and education programme called Expedia Group Academy. The programme consists of a range of learning modules to assist industry leaders, covering sales, business skills and inclusion.