Skift Take
While much of the talk nowadays is about digital nomads and remote workers, both Expedia Group and Booking Holdings have actually doubled down on dedications to traditional head office. Which might imply that there might be real workplaces again after the pandemic.
Dennis Schaal, Skift
From the precise pandemic toll on their short-term rental numbers to building and construction schedules and commitments to brand-new physical head office during a mainly remote-working period, Expedia Group and Booking Holdings set out newsy tidbits and methods in their 2nd quarter financial filings. We chose some to highlight.
1. Both Expedia Group and Booking.com Are Dedicated to New Head Office
In spite of the remote-working trend, which sped up throughout the pandemic, Expedia Group finished the $900 million building of its Seattle, Washington head office in the second quarter of 2021 following Covid-related hold-ups.
Staff members started transitioning from the company’s previous digs in neighboring Bellevue in late 2019. But that got interrupted by the pandemic. However, Expedia Group saw many of its location employees begin returning to head office last month.
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Inquired about the accurate status of Expedia employees going back to business offices, a representative stated Wednesday “most Expedia Group offices are currently open for those who are able to be available in, while preserving flexibility and suitable safety standards.”
The spokesperson added: “Due to developing circumstances connected to Covid-19, we are now targeting a broad go back to the office on a hybrid basis in January 2022, dependent on assistance from local governments and health authorities. The wellness of our people is our concern, and we look forward to reuniting our worldwide staff member community when it is safe to do so.”
On the other hand, Booking.com is slated to get a new head office in the Netherlands. The building’s construction is scheduled to be ended up midway in 2022.
Just like Expedia, the building and construction of Booking.com’s head office began in 2016. Moms and dad company Reservation Holdings was to pay around $321 million for this office complex task, omitting a lease for the land.
Booking.com’s sister brand name Rentalcars.com is also on track to get a brand-new head office in Manchester, England by the end of September 2021.
2. Downsizing Alternative Accommodations
Both Expedia Group and Booking.com saw significant decreases in their short-term rental inventory in the 2nd quarter of 2021 versus a year earlier. It appears as though Booking.com was hit more difficult than Expedia however it’s difficult to say from their financial filings due to the fact that they measure things in a different way, and there are other elements at play.
For instance, Booking.com counted “homes, apartment or condos and other distinct places to stay” as residential or commercial properties, while Expedia Group mentioned its Vrbo system’s “online bookable alternative accommodations listings.”
In addition, Booking Holdings stated Booking.com routinely eliminates alternative lodgings homes for things such as not supplying accessibility or nonpayment of invoices.
Booking.com saw its alternative accommodations residential or commercial property numbers decline 7.2 percent to 1.95 million properties in the 2nd quarter of 2021, although that figure totaled up to an increase compared to the first quarter.
On the other hand, Vrbo’s ranks of alternative accommodations listings declined a more modest 4.76 percent to 2 million listings in the second quarter compared to the June quarter of 2020.
3. Expedia Group Is Moving Along With Disposing of Brands
In its most significant asset disposal in memory, other than the Tripadvisor spinoff in 2011, Expedia Group in early August accepted American Express Global Business Travel’s deal to acquire Expedia’s business travel unit, Egencia. Expedia would take a 14 percent stake on the planet’ largest travel management business in a deal valued at around $750 million. The closing is expected later in 2021.
As detailed in its financial filing, Expedia offered holiday packager Classic Vacations, acquired in 2002, to private equity firm Najafi Business in April. Expedia’s monetary gain on the transaction is not material to its financials.
With Expedia seeking to streamline its plethora of holdings to concentrate on core organizations, it likewise sold its hotel operations app, Alice, to personal equity firm Alpine Investors last month. Once again, the offer will not significantly impact Expedia’s balance sheet.
4. Hotel Tax Litigation Wanes
Starting in 2004, online travel agencies have been defendants in hotel tax claims brought by cities, counties and states. In general, the plaintiffs have actually argued that online travel agencies ought to be remitting occupancy taxes on the full retail rate they provide spaces to consumers, and not simply on the lower net rate that Expedia receives from hotel business to sell their spaces.
Expedia stated there have actually been 103 such lawsuits submitted over the years, and there are just 10 that are currently pending. Nevertheless, Expedia is still subject to tax audits or queries, such as a continuous one performed by the City of Los Angeles, which was the very first municipality to submit a hotel tax claim versus the online travel bureau in 2004.
Booking Holdings, meanwhile, goes through many value-added tax and rate parity lawsuits actions and regulatory inquires throughout Europe.
5. Expedia Settles Shareholder Suit
Expedia stated it has actually tentatively settled a shareholder claim dating to 2019 that challenged senior executive Barry Diller’s possible ballot control of the company after carrying out a merger with Liberty Expedia. Terms of the settlement have actually not been divulged.
6. Booking.com Still Working to Repay More Government Grants
Under fire from some of its staff members in Europe who challenged how Booking.com might accept Covid-related federal government assistance while shooting about 25 percent of its workforce in 2020, the business stated that it paid back about $137 countless that support since June 30, and another $19 million after that.
“While not all such funds have actually been returned yet, we are dealing with various federal governments to voluntarily make repayments,” Booking Holdings specified.
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