SEATTLE, Washington – Online travel company Expedia Group Inc. has announced the appointment of Ariane Gorin as its new chief executive officer, replacing Peter Kern who has been in the role since 2020.
Gorin, who has been an executive at Expedia since 2013 and most recently served as the president of the enterprise division, is set to take over the CEO position on May 13, the company stated. Meanwhile, Kern, 56, will continue to serve as vice chairman and member of the board after stepping aside at the end of his contract.
Expedia also reported fourth-quarter gross bookings of $21.7 billion, falling short of analysts’ average estimate of $22 billion. The company’s revenue, however, increased by 10% to $2.89 billion, in line with analyst projections.
According to Bloomberg Intelligence analyst Kevin Tsao, the sudden change in leadership could signal another strategic struggle at the Seattle-based travel booking website. Kern, who was appointed CEO at the start of the pandemic, was given the task of leading Expedia out of its struggles as it faced significant challenges due to global lockdowns.
Under Kern’s leadership, Expedia has focused on technical upgrades and a revamp of its loyalty program. Despite this, the company has not seen the same post-pandemic travel boom as some of its rivals.
Gorin’s division, which handles advertising and travel technology for corporate clients and other major brands, has been experiencing faster growth compared to the consumer-facing retail business. As Expedia aims for more aggressive growth this year, it also plans to increase its marketing expenses in order to raise brand awareness and compete with other travel industry giants.
The announcement of Gorin as the new CEO led to a 13% drop in the company’s shares in extended trading. This comes as the stock has gained about 34% in the past 12 months, trailing behind its competitors.