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Strong Q4 Performance Driven by B2B Expansion, AI Integration, and Brand Resurgence
Expedia Group wrapped up 2024 with impressive financial results, reporting a strong fourth quarter marked by double-digit revenue growth and strategic advancements in artificial intelligence (AI) and brand revitalization. The company’s new Chief Financial Officer, Scott Schenkel, described the Q4 performance as a “solid finish” to the year, underscoring the momentum driving the travel giant’s expansion.
Strong Q4 Performance and Financial Highlights
For the fourth quarter, Expedia posted $3.1 billion in revenue, reflecting a 10% year-over-year increase. This growth was fueled by a 21% surge in B2B revenue, a 25% boost in advertising revenue, and strong performances across all three consumer brands—Expedia, Hotels.com, and Vrbo.
The company’s gross bookings for Q4 reached $24.4 billion, up 13% year over year, bringing total 2024 gross bookings to $111 billion, a 7% increase from 2023. Booked room nights rose by 12% in Q4 and 9% for the full year, while lodging gross bookings increased by 12%, reaching $17 billion. Notably, hotel bookings climbed 14%, reflecting strong demand.
Expedia’s B2C segment saw $2 billion in Q4 bookings, marking a 6% increase, while B2B bookings surged by 21% to $1 billion. For the full year, B2C bookings grew by 2% to $9.2 billion, and B2B bookings soared by 21% to $4.1 billion.
The company’s adjusted EBITDA for Q4 was $643 million, with full-year EBITDA totaling $2.9 billion, reinforcing Expedia’s strong profitability.
AI to Drive Future Innovation and Customer Experience
As Expedia looks ahead to 2025, AI integration remains a core strategic focus. CEO Ariane Gorin, who will mark one year in her role this May, outlined three key areas where AI will play a transformative role in the business:
Enhancing Traveler and B2B Partner Experience – AI-driven tools will improve product offerings, making booking processes more seamless and personalized. While no updates were provided on Romie, the AI assistant launched in 2023, Gorin reaffirmed the company’s commitment to AI-powered improvements.
Adapting to New Travel Behaviors – As travelers increasingly use AI-powered search tools, Expedia aims to ensure its brands remain visible in these evolving digital landscapes. The company’s tech-driven marketing strategy will be crucial in navigating these shifts.
Investing in AI-Native Travel Startups – Expedia is actively exploring partnerships with AI-native travel startups, particularly those specializing in supply chain and operational efficiencies.
Vrbo and Hotels.com Rebound Amid Platform Transition
Expedia’s brand strategy paid off in 2024, with Vrbo and Hotels.com rebounding strongly after challenges related to their migration to the company’s new tech platform. Gorin highlighted Vrbo’s impressive growth, fueled by product improvements, enhanced marketing strategies, and a one-million-listing expansion, particularly in urban areas. The company has ambitious plans for Vrbo in 2025, with continued investments to strengthen its position.
For Hotels.com, Gorin acknowledged difficulties stemming from tech migration and changes to the OneKey loyalty program. However, she assured investors that major revitalization efforts are in motion, with key initiatives set to be unveiled in 2025.
OneKey Loyalty Expansion on Hold
While OneKey’s expansion beyond the U.S. and the U.K. is currently paused, Expedia is assessing the program’s impact across brands and regions before determining the next phase of its loyalty strategy. Further updates on this front are expected later in the year.
Global Demand Outpaces U.S. Growth
International markets continued to outperform the U.S. in Q4, with booked room nights in the U.S. growing at a high single-digit rate, while Europe saw low double-digit growth. Demand in other regions, particularly APAC, outpaced both markets, contributing to strong B2B growth and reinforcing Expedia’s global expansion efforts.
Looking Ahead: A Future Fueled by AI and Strategic Growth
With strong financial momentum, AI-driven innovation, and renewed brand strength, Expedia Group is poised for continued success in 2025. By focusing on delivering more value to travelers, investing in high-growth opportunities, and improving operational efficiencies, the company is setting the stage for long-term growth in an evolving travel industry.
As AI reshapes travel, Expedia’s strategic positioning will be critical in maintaining its leadership and expanding its influence in both B2B and B2C markets worldwide.
