No doubt, the Travel industry is the most affected sector due to this Coronavirus epidemic. This sector is suffering huge losses due to this epidemic and brought the travel industry to a screeching halt. During lockdown, everyone is sitting at their home and no one travels across the country that’s why the industry is suffering a huge loss. As everyone is under lockdown, one of the top travel sites Expedia declared that it has lifted $3.2 billion to prevent from this situation and help ride this out.
This deal of $3.2 billion consists of two different sectors of cash as $1.2 billion comes from private residency of perpetual preferred stock and the remaining portion of around $2 billion comes from the latest debt financing as confirmed by the company.
The funds will be provided by the Apollo Global Management and Silver Lake to provide some capital support for the company that will help them in facing the Coronavirus epidemic and remains solid at this time. The partner of Apollo Global Management, Reed Rayman also helps the company is standing solid during this rough time and plan for the future, that how to boost the business once all this over.
Through this commitment, it will be easy for company to have a solid market share as well as helps in recovering better in this economic condition, Rayman said in a statement. Although it might not be better than ever, it would serve to ensure that a large amount of working resources appears only as this recession begins.
Also, the organization makes substantial changes to the management committee and appoints Eric Hart as CFO and seasoned Vice Chairman Peter Kern as the CEO of the company. It also reported that some executives and board members would neglect salaries for the remainder of the year and that senior management would slash their pay by 25 percent. Business chairman Barry Diller explained in a press release all the actions that the business was taking but stressed that strategic reform was underway before the crisis overtook the company and the industry as a whole. The company will be pressured to lean because of ongoing labor issues and this means that some workers will be strained and work weekly shortened by 31 August at least. The company will also suspend 401(k) funding for the remainder of the year and urge employees to shorten their working hours voluntarily.
The organization has faced an enormous amount of obstacles ever since the recession started, and even as worldwide governments have been overwhelmed, so have we. We had restricted online cancelation support services and our call volume increased by 500%. Our technical teams have built new technologies under incredible pressure and have continued to put our capability to reasonable standards, he said in the letter.
He ended his letter with an optimistic message, saying that such demonstrations would allow them to live with enough currency.