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Board spill at Expedia sees CEO resign

Expedia CEO Mark Okerstrom.

Expedia CEO Mark Okerstrom and chief financial officer Alan Pickerill have resigned following a shareholder meeting over “disappointing” results.

The latest results saw the company’s net income fall 22 percent to $409 million despite posting a room night growth of 11 per cent and revenue rise 9 per cent to $3.6 billion.

“Ultimately, senior management and the Board disagreed on strategy,” Chair of the board Barry Diller said in a statement. “Earlier this year, Expedia embarked on an ambitious reorganisation plan with the goal of bringing our brands and technology together in a more efficient way.

“This reorganisation, while sound in concept, resulted in a material loss of focus on our current operations, leading to disappointing third-quarter results and a lacklustre near-term outlook.

“The Board disagreed with that outlook, as well as the departing leadership’s vision for growth, strongly believing the Company can accelerate growth in 2020.

“That divergence necessitated a change in management.”

Diller and vice chairman Peter Kern will oversee the leadership team and manage day-to-day operations until board-approved replacements are agreed.

One of the factors behind Expedia’s woes is a change in algorithms which has seen Google favour its own Hotel Finder platform, along with other paid links, over free links.