IN BRIEF
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The travel industry has seen significant transformations in the wake of the COVID-19 pandemic, particularly in the realm of employment. Major players like Booking Holdings and Expedia have taken notably different approaches to rebuilding their workforce. While Booking has revitalized its staff numbers almost to pre-pandemic levels, experiencing a remarkable hiring surge, Expedia has opted for a more cautious expansion, even implementing layoffs in recent times. This juxtaposition offers an intriguing look at their strategies and adjustments as they navigate the evolving landscape of travel and hospitality in a post-pandemic world.
As the world gradually recovers from the pandemic, two major players in the travel industry, Booking Holdings and Expedia, have taken notably different approaches to their workforce strategies. While Booking has rebounded strongly, nearly restoring its pre-pandemic employee count and even exceeding it in revenue, Expedia has faced challenges, with significant layoffs and a workforce that remains well below 2019 levels. This article explores the contrasts between their post-pandemic hiring strategies and the resultant implications for their operations and long-term growth.
Booking’s Remarkable Recovery
After experiencing a significant reduction in its workforce due to the pandemic—laying off 6,100 employees or approximately 23% of its staff in 2020—Booking Holdings has nearly restored its headcount to pre-pandemic levels. By the end of September 2024, Booking boasted 24,200 employees, marking a 19.2% increase since December 2021. Interestingly, if it had not outsourced around 2,700 call center positions to Majorel in 2022, the total would have surpassed the 26,400 full-time staff it had in 2019.
In terms of growth, Booking’s revenue rebounded impressively as well. It reported third-quarter revenues of nearly $8 billion in 2024, reflecting a staggering 60% increase compared to the same period in 2019. This robust recovery has signaled a clear strength in Booking’s business model, which has successfully navigated the challenges posed by the pandemic.
Expedia’s Workforce Decline
In comparison, Expedia’s journey has been markedly different. By the end of 2023, the company experienced a 15.5% increase in its workforce from pandemic lows, bringing its total employees to 17,100. However, this figure still represents a decline of about one-third from the 25,400 employees it had in 2019. With the completion of a major tech migration in early 2024, Expedia announced plans to lay off approximately 9% of its workforce, reducing its employee base to around 15,600.
This decrease indicates that while Expedia took steps to rebuild, it did so with a more cautious approach, resulting in a workforce that is still approximately 5.4% higher than its pandemic lows but significantly lower than its pre-pandemic levels.
Strategic Decisions Leading to Diverging Paths
What accounts for the stark contrast between these two travel giants? A key factor lies in their strategic decisions during and after the pandemic. While Booking has rapidly restored and expanded its workforce, Expedia made a conscious choice to streamline operations. Prior to the onset of the pandemic, Expedia was already under pressure to reorganize, characterized as a “bloated organization” by its chairman, Barry Diller.
With a focus on efficiency, the company had planned to reduce its staff by 12% before the pandemic, further laying off employees during its recovery phase. This proactive restructuring has hampered its ability to grow its workforce compared to Booking, which has been more aggressive in hiring as travel demand rebounded.
Revenue Recovery and Future Prospects
Despite its challenges, Expedia’s revenue figures show signs of recovery, with a reported $3.558 billion in the second quarter of 2024, closing in on pre-pandemic levels. While it’s still below what it achieved in 2019, the company has been adapting its strategies to strengthen its footing in the travel market.
The contrasting workforce recovery stories of Booking and Expedia serve as a reflection of their overall business strategies, shaping their futures as the travel industry continues to evolve in this post-pandemic landscape. The emphasis on workforce management and adaptation to market conditions will likely define their roles in the broader ecosystem of travel and hospitality.
For those interested in further exploring the dynamics of small business and entrepreneurship in the post-COVID landscape, check out the insights shared by the U.S. Treasury here.
For a comprehensive examination of Expedia and Booking in the post-pandemic travel landscape, visit this report.
| Company | Current Employee Status |
|---|---|
| Booking Holdings | Gained 19.2% in workforce since 2021, now at 24,200 employees |
| Expedia Group | Only 5.4% above pandemic lows, now projected at about 15,600 employees |
| Revenue Recovery | Booking’s revenue surpassed pre-pandemic, reaching almost $8 billion in Q3 2024 |
| WFH Strategy | Booking outsourced call center jobs but restored most other positions |
| Workforce Composition | Booking: 47% Europe, 36% Asia Pacific, 15% North America |
| Tech Migration Impact | Expedia’s recent layoffs followed its tech migration completion |
| Pre-Pandemic Workforce | Booking rebounded close to 2019 levels, while Expedia remains below |
| Layoff Rates | Expedia: 9% reduction in workforce announced for early 2024 |
| Employee Nature | Booking only counts full-time, while Expedia includes part-time |
| Future Outlook | Booking continues hiring, Expedia uncertain post-layoffs |
The travel industry has recently experienced significant shifts in employment trends, illustrating a compelling narrative between two industry giants: Booking Holdings and Expedia. As they navigate their recovery from the pandemic, their paths diverge uniquely in terms of workforce expansion and strategic adjustments. This article delves into how each company has fared, enhancing the understanding of their contrasting recoveries.
Booking Holdings: A Robust Recovery
Booking Holdings has seen a remarkable rebound in both revenue and staffing levels since the pandemic’s peak in 2020 when it laid off about 6,100 employees, representing nearly 23% of its workforce. Fast forward to 2024, and Booking has increased its employee count by an impressive 19.2%, bringing their total to approximately 24,200 employees. This regeneration comes as their revenues soar past pre-pandemic figures, with their third-quarter earnings in 2024 nearing $8 billion, which marks a 60% increase compared to the same timeframe in 2019.
Expedia’s Modest Growth Amidst Layoffs
In stark contrast, Expedia has taken a more cautious approach. While the company also saw growth in its employee roster, rising by 15.5% from its pandemic lows to about 17,100 employees by the end of 2023, this figure remains significantly lower than its pre-pandemic total of 25,400. Following a tech migration project completion, Expedia began a fresh round of layoffs affecting nearly 9% of its workforce early in 2024, reducing the employee count further to around 15,600. Such actions emphasize the operational restructuring that has become vital for optimizing efficiency.
The Impact of Outsourcing and Restructuring
Booking’s strategy has included outsourcing approximately 2,700 call center roles to Majorel in 2022. This decision means that, without this outsourcing, Booking would actually have exceeded its 2019 workforce levels. Geography plays a role too, with 47% of their employees located in Europe, 36% in Asia Pacific, and 15% in North America, highlighting a diverse global representative blend that has supported their growth.
On the flip side, Expedia’s pre-pandemic organizational concerns led to an 12% employee reduction as early as February 2020, indicating that its challenges extend beyond the pandemic’s onset. This trend continues as the company adapts post-migration, refocusing its team structure across various brands while carefully evaluating operational needs.
Revenue Growth Revisited
As of the second quarter of 2024, Expedia reported a revenue figure of about $3.558 billion, which although shows growth, still trails behind pre-pandemic metrics. The slow recovery reflects the ongoing impacts of restructuring while working towards efficiency within their operational model.
In summary, while both companies are on the road to recovery from pandemic-induced hurdles, Booking Holdings appears to be leading the charge with substantial growth in staffing and revenue. In contrast, Expedia has been more conservative, trimming down its workforce while seeking to refine and enhance its operational effectiveness. Understanding these divergent paths provides useful insights into the broader travel industry landscape moving forward.
For additional insights on these trends, check out more details on financialpost or take a deeper look into the specifics of Expedia’s layoffs through Skift’s coverage.
- Booking Holdings: Recovered nearly to pre-pandemic staff levels, with a 19.2% increase in workforce from 2021 to 2024.
- Booking Revenue: Surged past pandemic levels, reaching $8 billion in Q3 2024, a 60% increase from Q3 2019.
- Expedia Workforce: Currently at 17,100 employees, about one-third lower than pre-pandemic levels in 2019.
- Expedia Layoffs: Announced a 9% reduction in 2024, following technological migrations.
- Employee Distribution Booking: 47% from Europe, 36% Asia Pacific, 15% North America.
- Employee distribution Expedia: Operates across more than 50 countries with full and part-time roles.
- Tech Migration: Expedia’s workforce increase was temporary, focused on tech upgrades.
- Outsourcing Impact: Booking outsourced 2,700 call center positions in 2022, affecting overall employment numbers.
As the world gradually emerges from the shadows of the pandemic, two major players in the online travel industry, Booking Holdings and Expedia Group, have taken notably different approaches to rebuilding their workforce. While Booking Holdings has aggressively ramped up its staffing numbers, surpassing pre-pandemic levels, Expedia has made strides but has also resorted to layoffs, showcasing a contrasting recovery narrative. This article delves into the factors influencing their divergent paths and offers recommendations for navigating the evolving landscape of the travel industry.
Booking Holdings: A Stalwart Recovery
Booking Holdings has made a remarkable return to form after the pandemic, with its revenue soaring past pre-pandemic figures. The company has seen a substantial 19.2% increase in its workforce from 2021 to 2024, which translates to nearly 4,000 new employees. This recruitment surge reflects the company’s commitment to meeting the rising demand for travel services, capitalizing on its robust financial health. Booking’s strategic moves, including the cautious approach to outsourcing customer service roles, have enabled it to retain a significant portion of its staff, which now stands at 24,200 as of September 2024.
Recommendations for Booking Holdings
In light of this growth, Booking Holdings should continue to prioritize employee engagement and development. Investing in training programs and fostering a positive workplace culture will ensure that employees feel valued and equipped to handle the increasing demands. Additionally, leveraging data analytics to assess workforce needs will help the company maintain an agile workforce that can adapt to market fluctuations effectively.
Expedia Group: Challenges Amidst Growth
Conversely, Expedia Group has faced a more tumultuous path on its road to recovery. While the company increased its workforce by 15.5% from its pandemic lows to reach approximately 17,100 employees by the end of 2023, it still remains a third lower than in 2019. Recent layoffs of around 9% of its workforce highlight the challenges Expedia has faced, especially following its extensive tech migration completed in early 2024. The need to downsize following the project underscores a reactive strategy rather than a proactive workforce growth plan.
Recommendations for Expedia Group
To navigate these challenges, Expedia Group should focus on strategic workforce planning. Understanding the skills needed for future growth and aligning employee capabilities with business objectives is critical. Implementing a comprehensive talent management strategy, including reskilling and upskilling initiatives, will help retain valuable employees while optimizing operational efficiency. Furthermore, enhancing communication and transparency around layoffs will foster trust and loyalty among the remaining workforce.
Industry Insights and Future Outlook
The contrasting trajectories of Booking and Expedia underscore the broader trends emerging in the travel industry post-pandemic. As travel demand escalates, companies must adapt rapidly to changing market dynamics. Data-driven decision-making is crucial for both firms to enhance performance and inform future hiring practices. Companies need to remain agile and responsive to market trends, ensuring they can capitalize on opportunities while mitigating risks.
Final Thoughts
Ultimately, the recovery paths of Booking Holdings and Expedia Group offer valuable insights into workforce management strategies in the post-pandemic era. By focusing on employee engagement, strategic planning, and data-driven decisions, both companies can position themselves for sustainable growth and success in the ever-evolving travel landscape.
Frequently Asked Questions
Q: How has Booking Holdings’ workforce changed since the pandemic?
A: Booking Holdings has increased its employee count by 19.2% since 2021, reaching a total of 24,200 employees by September 30, 2024.
Q: What happened to Booking Holdings’ workforce during the pandemic?
A: During the pandemic, Booking Holdings laid off approximately 6,100 employees, which was about 23% of its workforce, and froze hiring through the end of 2021.
Q: How did Expedia’s workforce change by the end of 2023?
A: By the end of 2023, Expedia had increased its workforce by 15.5% from its pandemic low to around 17,100 employees, but this was still one-third lower than pre-pandemic levels.
Q: Why is Expedia reducing its workforce in 2024?
A: Expedia is laying off about 9% of its workforce because it had previously expanded its employee ranks for a multiyear tech migration, which has now been completed.
Q: What is the geographical distribution of Booking Holdings’ current workforce?
A: As of the end of 2023, about 47% of Booking Holdings’ employees are located in Europe, 36% in Asia Pacific, 15% in North America, and 2% in the rest of the world.
Q: How does Booking’s revenue compare to pre-pandemic levels?
A: Booking’s revenue for the third quarter of 2024 was nearly $8 billion, which is 60% higher than in the same period in 2019.
Q: Did Booking Holdings outsource any jobs, and how did it affect their workforce numbers?
A: Yes, Booking outsourced around 2,700 call center jobs in 2022. If these jobs hadn’t been outsourced, their workforce would have surpassed the pre-pandemic level of 26,400 employees.
Q: How has Expedia’s structure changed in the years leading up to the pandemic?
A: Prior to the pandemic, Expedia announced plans to reduce its employee ranks by 12% and conducted additional layoffs in 2020 and 2021 as part of a reorganization that consolidated teams across various brands.