Expedia COVID loss

UNPRECEDENTED customer service demand due to COVID-19 saw Expedia Group handle a whopping 22 million requests over a ten-week period, with the company rapidly developing self-service options to cancel air and accommodation bookings without speaking to an agent.

Automation capabilities were added to allow supply partners to initiate cancellations, and as a result the percentage of cancellation inquiries for air travel managed without an agent increased from about 65% in Feb to more than 95% last month.

The measures were detailed in a first quarter earnings release from the company overnight, which confirmed gross bookings declined 39% year on year for the three months to 31 Mar.

Expedia incurred an operating loss of US$1.29 billion on gross bookings of US$17.9 billion during the period, which also saw the company secure US$3.95 billion in additional funding.

The travel giant has implemented major cost reductions including cuts to variable marketing expenses and deferring capital projects.