It is interesting that you and Ctrip used to be competitors in China, but now you are partners. What is Expedia's strategy in China?
Obviously there is a big domestic market and a big outbound market in China. I think companies have to be honest and realistic about their strengths. Local Chinese players can be stronger in competing for the local Chinese travel, versus Western players who try to build to compete in the Chinese local market. So we look for a local partner. We have known Ctrip for a long time, and they are the top player in China, so we decided to sell eLong to them. Acquiring eLong was attractive for Ctrip because competition for the domestic market was getting fairly unprofitable for all the players.
As a part of the sale we had a commercial agreement with them to power their outbound travel, especially on the package side. Now a significant amount of Chinese outbound travel is on travel packages. So our strategy is to focus on the outbound, and we think it is a good strategy. We are in an early stage, and we are very optimistic about where it will take us. Companies should focus on where they can have value. We think we add significant value for the Chinese outbound customer, and we are going to focus on that market.
What is your corporate culture?
We have a set of cultural norms. One of our norms is transparency. It is the kind of company we want to be. When you move up and up, you know less and less about what is really going on because people are afraid of being honest with you. So our strategy is brutally honest with our employees. We are very transparent about what is going on at the company, and they are free to be transparent and talk back to us. We build a culture where people can be themselves, can be successful and can really operate without fear.
What is your management style? Are you a tough leader?
I would say yes and no. You have to have different management styles based on the situation that you are in. The company is doing really well, and we've been doing really well over the past five years. But it is a manager's job to guard against complacency, to be tougher. So people don't get overconfident, so they don't get blinded by their own success or miss something. And through the tough times, I will ask tough questions. But if I think that you are right person to take on a task, I will encourage you, coach you and cheer you on.
What has your biggest achievement been as Expedia's CEO?
I love the culture of the company. The company is becoming something special. What I love about the company is that it is a place where you can be your real self, your truthful self, and you can succeed with your own style. It is a very transparent, open company and different people can succeed in different ways here.
This is a company where the power comes from the idea, not from your title. It is a very data-driven company. Everyone's idea is equal in the company.
What are your life and business philosophies?
Keep it simple. Business people tend to over-complicate situations. Simplify things. To simplify what you are good at and what you should focus on is a real test of a company. I tell people a lot that the test strategy isn't what you are going to do, but it is what you are not going to do. Personal life is the same thing. Know what makes you happy and stick to it. Forget about everything else.
How do you handle hardships and setbacks?
I like the hardships and setbacks. I am not the kind of person to go on a beach vacation. For my honeymoon we went trekking to see gorillas. I like a challenge. If you look what the company has accomplished during the past 11 years, and hopefully what we will accomplish in the next couple of years, no-one can accuse this company of riding a wave. We have fought for every inch and every success. Everyone here has been together and incredibly close. That is because we have been through a lot of battles and I think that's what shapes you as a person. So I love the fight, and I love the hardships. They are what make me tick.
What are your hobbies? How do you spend your time off duty?
I have four children and they take a very significant amount of my time off duty, which I am very happy to do and which is great. Travel for me and my wife Sydney is a real passion. She loves going anywhere and everywhere. So we do travel. And when I have time on hand, I play some computer games. I am a computer geek at heart. I try to get the odd hour to play strategy games.
