NEWS


potential job losses, demand for villa holidays and changes at a leading online travel agent EXPEDIA’S CYRIL RANQUE


ACCOUNTANT CHRIS PHOTI


Chris Photi


Travel Weekly’s Ian Taylor


Cyril Ranque


Travolution’s Lee Hayhurst


Expedia boss says crisis shows ‘need for change’


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xpedia’s partnerships boss says Covid-19 has underlined the need for the global OTA giant


to streamline and simplify its business. Speaking to Travel Weekly sister


title Travolution, Cyril Ranque said the pandemic had “accelerated the need for change” at the company, which was already going through a restructuring following the departure of former chief executive Mark Okerstrom last December. In February, 3,000 job losses were


announced as part of a $500 million cost-cutting exercise. Chairman Barry Diller described the organisation as “bloated” and overly complex. Ranque told Travolution a more


simple organisation is emerging, with supplier teams now in the travel partners group, platform and marketplaces integrated and, most recently, the retail product organisation and marketing divisions combined. “We had to simplify our


organisation,” he said. “We have been really hands-on trying to look


travelweekly.co.uk


at everything we are doing that is not creating a tonne of value, and not chasing every little idea. “Partners should see us as


working more on automation, providing self-service capabilities that allow them to do the right things for their customer.” He said Expedia’s plans


for recovery centred around a $275 million recovery package for the industry. “We had some big global partners that led the way in taking the hit and refunding customers, so that made it easier for us because they paved the way on doing the right thing for the customer. “For those that did that, we


implemented their policies, and we have rewarded them by giving them a search ranking boost for a year for doing the right thing for customers. “Other partners had no way to


refund everyone, so for those we issued them with vouchers so they could keep those bookings on the books. “The industry split between these


two options and, I think, that was the most logical and fair approach.”


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‘Travel jobs will be lost but the trade will come back’


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ob losses are inevitable as furlough arrangements end and travel companies prepare to repay loans,


according to leading industry accountant Chris Photi. Photi, head of travel and leisure


at White Hart Associates, warned: “Some people in the travel industry are going to lose their jobs.” He commended the


government’s job retention and business loan schemes, saying: “I have criticisms of the government, but not in those areas. The schemes have been really effective.” But he added: “I don’t know


whether it’s going to work out in the long run. Most businesses value skilled employees and don’t want to lose the skill set. I’m sure that will be the case in a large proportion of cases. But everybody is going to be looking at the fact that, ultimately, they have to repay these loans.” Asked if he foresees redundancies


as the furlough scheme ends, he said: “Yes, bluntly. They [businesses] will be asking ‘What am I going to do


[All businesses] are


going to be looking at the fact that they have to repay these loans


to repay these loans?’ Staff is a key overhead. I can see travel businesses wanting to stretch resources as opposed to having the bodies the business probably needs.” Photi warned the sector could


see redundancies as extensive as in aviation, where airlines are seeking job cuts of 15% to 30%, saying: “It will be that sort of level, yes.” However, he insisted: “I expect


the trade to get back. You’ve only got to look at the statistics. In 1970, 200 million people were travelling. Last year it was 1.4 billion. “Higher employment isn’t going


to help initially; people being careful with their finances isn’t going to help. But ultimately the flow will come back. Travel gives people


their most enjoyable experiences.” i Furlough advice, page 13


11 JUNE 2020


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