Expedia Chairman Says Company to Cut Ad Spending by at Least 80%

Expedia Group (NASDAQ: EXPE) is taking an axe to one of its major expenses. On Thursday, the company's high-profile chairman Barry Diller said in an interview with CNBC Thursday that the online travel agency (OTA) would likely cut its advertising budget by a minimum of 80% in 2020.

"[W]e spend $5 billion a year on advertising," Diller said. "We won't spend $1 billion on advertising probably this year."

Despite its considerable size, Expedia is in constant competition with rival large and small OTAs. As a result, it devotes much capital to advertising. The general selling and marketing category is by far the largest line item in the "costs and expenses" section of its profit and loss statement. 

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Source Fool.com