Expedia’s 2025 turnaround gains momentum under new leadership

Improved growth and marketing efficiency signal a shift in Expedia’s competitive position

Expedia Group showed clear signs of recovery and competitive momentum in 2025, driven by stronger room night growth and improved marketing efficiency, according to a recent research note by BTIG. The analysis suggests that Expedia outperformed peers on room nights while expanding EBITDA margins, marking a notable shift after several years of underperformance. The turnaround followed leadership changes and strategic recalibration under CEO Ariane Gorin. While B2B growth accelerated sharply, Expedia remains primarily a consumer-focused business.

Key takeaways

• Room night growth outpaced peers: Expedia is expected to report high-single-digit room night growth in Q4 2025, outperforming major OTA competitors.
• Marketing efficiency improved materially: Reduced absolute B2C marketing spend delivered stronger leverage, reversing years of weaker marketing returns.
• B2B business drove momentum: Expedia’s B2B segment grew significantly faster than its consumer business, becoming a key contributor to overall room night growth.
• Leadership reset enabled recovery: Strategic adjustments following Gorin’s appointment addressed underinvestment in brands like Hotels.com and Vrbo during the prior platform transition.
• Pandemic-era restructuring set the foundation: Earlier efforts under former CEO Peter Kern modernized Expedia’s technology and loyalty platform after challenges that led to the exit of Mark Okerstrom.
• Consumer business remains central: Despite rapid B2B expansion, the majority of Expedia’s bookings continue to come from its consumer-facing brands, countering claims of a full B2B pivot.

Source: Skift

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