Expedia Group delivered a strong fourth quarter in 2024, reporting double-digit growth in hotel bookings, gross bookings, and revenue.
The online travel giant credits robust B2B partnerships, increased travel demand, and AI-driven innovations as key factors behind its success.
According to Expedia’s earnings release, Q4 hotel bookings rose by 12%, while total gross bookings and revenue grew 13% and 10% year-over-year, respectively. For full-year 2024, Expedia’s gross bookings and revenue increased by 7% compared to 2023.
CEO Ariane Gorin expressed optimism about the company’s performance: “Fourth-quarter results exceeded our expectations with room nights, gross bookings, and revenue all growing double digits. This topline strength reflects our continued execution and better-than-expected travel demand.”
Expedia’s B2B Growth and International Expansion
A major driver of Expedia’s revenue surge was its business-to-business (B2B) segment, which saw a 24% increase in bookings in Q4. The company’s advertising business also posted 25% revenue growth.
Expedia’s Asia-Pacific expansion played a key role, with B2B partners in the region growing faster than market trends. The company plans to build on this momentum by:
- Expanding B2B inventory
- Strengthening existing partnerships
- Testing new travel products
According to the U.S. Department of Commerce’s National Travel and Tourism Office (NTTO), international travel to and from the U.S. continues to rebound post-pandemic, with travel spending and arrivals increasing across key markets. Expedia is leveraging this resurgence in global travel to capture a larger market share.
VRBO and Hotels.com Back on Track
Despite facing platform challenges in 2023, Hotels.com and VRBO returned to growth in Q4 2024. Hotels.com saw moderate international growth, while VRBO benefited from increased traffic and conversions.
Gorin reaffirmed the company’s commitment to driving growth across all platforms:
“When I stepped in as CEO last year, we set an ambition to bring VRBO and Hotels.com back to growth while extending our strengths in Expedia, B2B, and advertising. We’re making strong progress.”
AI’s Role in Expedia’s Future Growth
Expedia is embracing artificial intelligence to enhance its customer experience, partner services, and business operations. Gorin outlined three key AI opportunities:
- Improving Expedia’s Travel Products – AI-driven features for customers and partners.
- Adapting to Consumer Behavior – Optimizing Expedia’s visibility in Generative AI search platforms.
- Partnering with AI Startups – Exploring collaborations with AI-driven travel tech companies.
The U.S. Department of Commerce recognizes AI as a transformative tool for industries, including travel, in improving efficiency, personalization, and revenue growth. Expedia aims to be at the forefront of AI-driven innovation in the travel industry.
2025 Outlook and Financial Projections
Expedia CFO Scott Schenkel, who was appointed in December 2024, set realistic expectations for Q1 2025, noting that it is traditionally the slowest quarter for the travel industry.
- Gross bookings growth expected to be 4-6%
- Revenue growth projected at 3-5%
- Foreign exchange rates and Easter timing may impact revenue
As of press time, Expedia’s stock was trading at $199.60 per share, reflecting a 29.4% increase year-over-year, outpacing the NASDAQ Composite’s 24.9% gain.
With strong Q4 earnings, AI-driven strategies, and global expansion, Expedia is well-positioned for continued success in 2025 and beyond.
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