Expedia has decided to allocate 275 million dollars to help partners recover from the impact of COVID-19 and support the entire tourism sector's recovery efforts.
A study conducted by Expedia Group in April 2020 shows that hoteliers, in their recovery efforts from the pandemic, expect support from OTAs in four priority areas: demand trends related to leisure and domestic travel; investments in marketing and demand generation for travel and destinations; increased visibility on Expedia Group sites; and financial incentives.
“There is no single plan for recovery. Restoring the travel market will require an unprecedented level of public-private partnership, along with a deep understanding of what our partners need“, said Cyril Ranque, President of Expedia Group’s Travel Partners Group. “This recovery program is the first step of our long journey to rebuild a more resilient, inclusive, and sustainable global travel ecosystem“.
Summary
Expedia Support Program for Hoteliers
The Expedia Group support program consists of global initiatives to support sector recovery and structural assistance, aimed at helping independent partners and small chains rebuild their business, attract high-spending guests, and optimize cash flow.
Expedia Partner Support
- Expedia Group is allocating $250 million in marketing credits and financial incentives. For each property participating in the program, the company will reinvest 25% of the earnings from the property in 2019 into marketing credits to be used with Expedia Group. Additionally, the company will reduce its commission on all new bookings during the three-month active period of the program, regardless of actual stay dates. Finally, Expedia Group will extend payment terms for Hotel Collect bookings to 90 days to provide further financial support. Marketing credits and financial incentives will be available based on the recovery trend, including demand patterns, from specific markets. This approach will give Expedia Group partners the support they need when it is most advantageous. There are minimum requirements for partners to participate in the program. The company is currently testing this program in some Asian countries.
- To better understand when demand will return to the market, Expedia Group will provide proprietary data to track trends through a new analysis tool called Market Insights. The dynamic dashboard provides trends related to website traffic, stay dates, and demand origin markets. The tool is already available and free for all partners using Partner Central.
- To support chains and owner groups, Expedia Group has released a simplified version of its optimized distribution solution that allows accommodation providers to manage wholesale rate distribution more effectively among third-party travel providers. The solution is designed to increase revenue by strategically positioning partner inventory within a network that includes airlines, loyalty and affiliation organizations, financial institutions, offline travel agencies, and many others.
Expedia Support for Destinations
- To stimulate demand through market knowledge, Expedia Group Media Solutions, Expedia Group’s global advertising organization, is launching a $25 million fund for destinations. This recovery plan focuses on implementing promotional and cooperative campaigns for destinations, aiming to unite destinations and provider partners with similar audiences to manage their advertising investment and maximize conversions.
- To keep travel top of mind for consumers, Expedia Group will launch a series of global brand campaigns. For example, an online media campaign called Where Next? that helps travelers discover new destinations. In the first weeks, it reached 30,000 unique visitors, showing a promising trend among travelers. The campaign will run until mid-June and is available on any device of Expedia Group brands. Other campaigns include: video conferences with Travelocity’s Travel Gnome, virtual wedding ceremonies with Captain Obvious, and new virtual travel experiences on Expedia.com such as trips to Yellowstone and Berlin Philharmonic performances, among others.
Supporting the Tourism Industry
- To help workers on short-term layoffs and those who have lost their jobs during this complex period, Expedia Group has created a free training and education program called Expedia Group Academy. The program promotes skills development through online learning modules and live content coordinated by Expedia Group experts and travel industry leaders. It will focus on diversity and inclusion, sales and business skills, and leadership development. Upon completion, participants will have recruitment opportunities. Interested individuals can connect with other participants on the LinkedIn group Expedia Group Academy before the program officially launches at the end of June.
- To ensure safe booking for customers, Expedia Group has introduced a new feature allowing hoteliers to highlight health and hygiene measures implemented at their properties. These include contactless check-in and check-out, hand sanitizer availability, enhanced cleaning measures, and social distancing protocols. Additionally, to promote health and hygiene among owners and guests, Expedia Group’s vacation home brand Vrbo has introduced a cleaning checklist to be added to property descriptions on Expedia Group sites.
- To meet the needs of cautious travelers and ensure booking flexibility, nearly 70% of stay rate plans on Expedia Group sites are now refundable. Moreover, Expedia Group will introduce a new flexible fares filter for flights on Expedia Group sites worldwide, allowing changes or modifications to itineraries as needed.
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