Online Travel Update: Trivago reports a challenging 2020, but expects a positive 2021; Expedia reports disappointing year-end results; ‘Clear’ emerges as new digital health passport leader; unpaid refunds threaten Lastminute.com | Foster Garvey PC

For readers who’ve been following our On-line Journey Updates since its inception, we thanks on your continued help. On this 12 months of 2021, June will mark our six-year anniversary of publishing these weekly updates devoted to retaining our readers up-to-date with authorized, regulatory, and market and business developments associated to the net journey house. We hope you proceed to search out them informative and useful as the net journey business retains evolving.

This week’s Replace consists of a number of tales spotlighting just a few Expedia Group firms – Expedia, Trivago and Vrbo. We’ve additionally included one other story on the so-called “digital well being passports.” Whether or not you agree with their use or not, we suspect the passports will probably be a part of journey (and life) for the foreseeable future. Over the previous a number of weeks, we’ve spent quite a lot of time with shoppers contemplating the function of COVID-19 testing, the professionals and cons of providing testing to company as an onsite amenity, and the way finest to leverage the take a look at outcomes (and shortly vaccination data) by way of the numerous out there digital well being passports. That is one a part of our follow that we might have by no means anticipated delving into simply 14 months in the past. Take pleasure in.

Trivago Studies a Difficult 2020, However Appears Forward to a Constructive Finish to 2021
(“A New Trivago Will Have More Booking and Travel Inspiration,” February 10, 2021 by way of Skift Journey Information) (subscription could also be required)
(“Trivago sees revenue slump 70% in 2020, eyes “normalcy” in 2021,” February 10, 2021 by way of Phocus Wire)
COVID-19’s fourth quarter resurgence took a heavy toll on the journey metasearch web site, Trivago. Final week, Trivago reported its fourth quarter earnings, which included a 79 p.c discount in fourth quarter income and a 70 p.c discount in income for 2020. Trivago ended the 12 months with a fourth quarter adjusted EBITDA lack of €3.4 million (versus a constructive €18.4 million in 2019) and a full-year adjusted EBITDA lack of €12.3 million (in comparison with a constructive $70 million for 2019). However the numerous downturn, Trivago stays optimistic {that a} return to normalcy could also be underway by the second half of 2021. Buoyed by Trivago’s current buy of on-line journey agent Weekend.com and the upcoming launch of its new native journey choices, Trivago believes that its current diversification past conventional metasearch and new product choices will permit it to compete for a broader viewers – not simply these able to guide the bottom out there value.

Expedia Reports Year-End Results
(“Expedia’s 2020 income sinks 57% as pandemic continues to roil journey business,” February 11, 2021 by way of GeekWire)
Highlights from Expedia’s fourth quarter earnings report embrace a 57 p.c drop in annual gross income (over 2019) and a 66 p.c decline in annual gross bookings (over 2019). The OTA (on-line journey company) reported a loss in every quarter of 2020 after posting worthwhile quarters within the final three quarters in 2019. In line with Expedia CEO, Peter Kern, Expedia’s fourth quarter “didn’t present any actual sequential progress apart from some indicators of modest enchancment across the holidays that carried into early a part of 2021.” However these disappointing outcomes, Expedia’s inventory value has lately rebounded to pre-pandemic ranges, although, even at pre-pandemic inventory costs, Expedia’s market capitalization of $21 billion pales compared to Airbnb’s present capitalization of almost $130 billion.

Is Clear the “Clear” Winner Among Competing Digital Health Passports?
(“NFL, Restaurateur Danny Meyer Again Digital Well being Passports By way of Funding in Clear,” February 8, 2021 by way of Skift) (subscription could also be required)
Over the previous few weeks, our Updates have included tales concerning the many competing digital well being passports striving to grow to be the go-to well being standing and verification utility. Final week, identification safety firm, Clear, took an enormous step towards reaching that aim with investments made by revered restaurateur, Danny Meyer, Liberty Media, Michael Jordan and the NFL totaling almost $100 million. Clear’s new Well being Move connects members’ identities with vital COVID-19 associated data, together with vaccination historical past. The Well being Move has already been adopted by the NHL, MGM Resorts, New York’s 9/11 Memorial and 9 NBA groups.

The Prospect of Traveler Refunds Threatens OTA’s Existence
(“Lastminute.com faces authorized motion over vacation refunds,” February 12, 2021 by way of Yahoo Finance)
On-line journey agent Lastminute.com is the newest OTA to fall inside the U.Okay.’s Competitors and Markets Authority’s (CMA) sights. Going through client stress for failing to refund quantities paid for journey packages canceled on account of COVID-19, the OTA agreed late final 12 months to refund roughly £7 million to 9,000 clients. The agreed refund was to be paid by the tip of January 2021, however as of January 31, roughly £1 million remained excellent. In line with the CMA, it plans to proceed with courtroom motion until the OTA makes the now overdue funds inside seven days. Curiously, Lastminute.com reportedly approached a number of of its airline companions relating to fee of the remaining refunds, a follow that CMA prohibited. A lot for these middleman reserving phrases and circumstances.

Different information:

Startup HomeToGo Is Defying Conventional Wisdom in Vacation Rental Search
February 10, 2021 by way of Skift Journey Information (subscription could also be required)
Hometogo, a price-comparison search service for trip leases, has had a sturdy income stream regardless of the pandemic. The Berlin-based startup credit its endurance partly to the relative reputation of vacation houses through the pandemic. However its founders additionally notice how their firm has relied on a considerably completely different enterprise mannequin to conventional metasearch manufacturers to draw each property administration firms and customers to its market.

Expedia Pulls Vrbo Rental Listings From Google to Drive More Direct Traffic
February 11, 2021 by way of Skift Journey Information (subscription could also be required)
Expedia Group anticipates that customers will return to reserving journey in massive numbers over time, and it goals to benefit from that in a phased advertising and marketing plan. The corporate is specializing in benefiting from that effort by increase its personal manufacturers relatively than others, like Google.

Alternative Lodging for Corporate Travelers Evolves With New Booking Tool
February 12, 2021 by way of Skift Journey Information (subscription could also be required)
Different lodging was one the higher performing components of journey final 12 months, as vacationers prevented cities and resorts. Now, a reserving engine that provides 3.4 million of those sorts of properties for main on-line journey companies needs to go it alone — focusing on firm journey.