Expedia’s Growth
Expedia Group ended 2024 on a high note, exceeding analyst forecasts with record-breaking holiday travel demand, AI-driven innovation, and a rebound in key segments like B2B and advertising. The company reported Q4 gross bookings of USD 24.4 billion, surpassing the expected USD 23.3 billion, with 86.4 million nights booked across its platforms, including Expedia.com, Hotels.com, and Vrbo.
Following strong performance, Expedia’s stock surged 9% in after-hours trading, recovering from a 7.4% decline earlier in the year. In a move signaling confidence in future growth, the company reinstated its quarterly dividend at 40 cents per share, effective March 2025.
Expedia’s B2B and Advertising Boom
Expedia’s Q4 revenue hit USD 3.1 billion, marking a 10% year-over-year increase, driven by a 21% rise in B2B revenue and a 25% increase in advertising revenue. Lodging gross bookings surged 12%, with hotel bookings growing 14% alone.
CEO Ariane Gorin, who took the helm in May 2024, emphasized three key priorities for 2025: expanding value for travelers, investing in high-growth business segments, and enhancing operational efficiency to improve margins.
AI at the Heart of Expedia’s Future Strategy
Artificial intelligence plays an increasingly central role in Expedia’s vision for 2025. Gorin outlined strategies on how the company plans to leverage AI to maintain its competitive edge, including enhancing user experience, investing in AI-native search platforms, and exploring partnerships with AI-driven travel startups.
Vrbo and Hotels.com Bounce Back
After recent challenges due to a tech migration, Vrbo and Hotels.com have shown strong growth in Q4. Gorin credited this success to improved product offerings and marketing strategies, with Vrbo adding one million new units, predominantly in urban areas.
Outlook for 2025
Despite a strong quarter, Expedia anticipates bookings to grow between 4% and 6% in 2025. One challenge is the strong U.S. dollar, which could impact the cost of international travel for American travelers, but it may also create opportunities for U.S. travelers seeking better deals abroad. The company expects a continued rise in international demand.
