Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Online Travel

Trip.com Group Taps $1.5 Billion Loan Tied to Green Targets

12 months ago

Trip.com Group said on Friday it had tapped a $1.5 billion sustainability-linked loan facility, meaning that the financing terms link the debt’s interest rates to the Chinese online travel giant’s performance against specific environmental targets.

The Shanghai-based company will use three-year dual-tranche term loan facility to refinance some of its debt, and the rest for general corporate purposes.

The move appeared to be the first time a major online travel player adopted green finance. Last year, a shareholder initiative prodded Booking Holdings to do a climate change report. The report came out this year. In October, the company said its Booking.com brand would add emissions estimates to bookings soon. Trip.com-owned Skyscanner has estimated flight emissions for consumers for a few years.

Climate-related risk is on investors’ minds as they look at their portfolios. For travel in general, the sustainability-linked bond may provide more flexibility for investors worried about this issue, said Leslie Samuelrich, president of Boston-based Green Century Capital Management. Sustainability-linked bonds are different from green bonds. They set macro targets for a company, while green bonds commit to specific projects.

The investment concept is growing fast, Samuelrich said. Last year, lenders issued $103 billion in sustainability-linked bonds to companies across various industries. The year before that, it was about $12 billion.

In April, Ascott Residence Trust issued a sustainability-linked bond — apparently the first in the hotel sector — worth about $143 million ($200 million Singaporean). Ascott Residence Trust has committed to a sustainability performance target of greening half of its total portfolio by 2025, and its interest rates would essentially rise on the loan facility if it fails to meet the target.

The process remains murky and slow burn, though. There’s a debate about measuring the greenhouse gas emissions contributing to the climate emergency. IFRS Foundation, the international accounting standards-setting body, has this year been working on setting standards for emissions-focused reporting. Their work, and the work of other organizations, will adjust how investors evaluate climate risk — a knotty task inviting skepticism from some critics.

Side note: Trip.com’s chief commercial officer Schubert Lou will talk about the international division of Trip.com Group at Skift Global Forum East in Dubai on Dec. 14.

Online Travel

Expedia Group Names Julie Whalen as Chief Financial Officer, First Woman There in This Leading Role

1 year ago

Expedia Group appointed board member Julie Whalen as the company’s new chief financial officer, replacing Eric Hart, effective September 26.

Whalen, the first female leader at this level at the company, will lead Expedia Group’s global finance organization, and will have a high-profile position, helping to explain the company’s performance during earnings call and conferences. She will remain on the Expedia board as a non-independent member.

Julie Whalen, the new Expedia Group chief financial officer. Source: Expedia Group

Hart, who has been with Expedia Group for more than 13 years, and the company’s chief financial officer since 2019, will stay on for a brief transition period until October 1, and will remain on the supervisory board of Trivago, an Expedia Group brand, as well as on the board of the Global Business Travel Group, where Expedia is an investor.

Expedia Group said Hart will “pursue new opportunities.”

“Mr. Hart’s separation did not result from any disagreement with the Company on any matter relating to the Company’s or Expedia’s operations, policies or practices, including accounting principles and practices,” Expedia Group stated in a financial filing.

Whalen has been chief financial officer of Williams-Sonoma since 2012. Her estimated total compensation, as announced in 2021, was nearly $6 million.

“Ms. Whalen also has been a key proponent of driving the company’s ESG- [Environmental, Social and Governance] related priorities,” Williams-Sonoma said in a financial filing in April.

Whalen was a member of the Expedia Group board’s audit committee since June 2019, and has chaired the committee since 2020.

Hart also had the Expedia Group title chief strategy officer. Whalen does not have that official role.

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