For vacationers seeking to ebook a flight or lodge room, Booking.com BKNG -0.91% and Expedia. EXPE -3.28% com look so much alike. But the 2 fared very in a different way when the coronavirus pandemic shut down travel, because of completely different methods behind their web sites.
Income has plunged at each Reserving Holdings Inc. and Expedia Group Inc. this yr. Every firm moved shortly to lift about $four billion within the spring to navigate the disaster. Expedia ended the third quarter with double the debt it began the yr with, whereas Reserving wound up with a much bigger money cushion.
The money imbalance illustrates how in a different way the 2 rivals operated their on-line journey providers. Expedia typically collected money upfront from lodge vacationers, and when these clients canceled, the corporate needed to pay them again. Against this, Reserving didn’t cost upfront as typically for lodge stays, so had much less to refund when cancellations occurred.
With Covid-19 cases surging, some international locations have imposed new restrictions and the Facilities for Illness Management and Prevention has advised Americans not to travel for the Thanksgiving vacation. However executives at Reserving and Expedia mentioned earlier this month that they survived the worst of the pandemic and really feel optimistic about information of promising vaccine candidates. The journey giants have ample money reserves and haven’t any plans to vary enterprise methods, they mentioned.