Expedia’s B2B business drives strong quarterly growth

Rising B2B demand highlights a strategic shift toward platform partnerships and AI-driven travel distribution

Expedia reported solid fourth-quarter performance, with revenue rising 11% to $3.55 billion, supported primarily by strong growth in its business-to-business (B2B) segment. Corporate travel clients, airlines, banks and other partners increasingly rely on Expedia’s technology, inventory and booking infrastructure to power their own platforms. The company views this segment as a growing strategic pillar, especially as artificial intelligence reshapes how travelers discover and book trips. Continued experimentation with AI distribution channels is expected to complement this B2B expansion.

Key takeaways

• B2B growth outpaces consumer segment: Gross bookings in Expedia’s B2B business rose 24%, significantly faster than the 5% growth in consumer bookings.
• Revenue increasingly driven by partnerships: B2B contributed about 38% of total revenue, up from 33% a year earlier, indicating a structural shift in Expedia’s business mix.
• Overall financial performance solid: Quarterly revenue reached $3.55 billion, exceeding analyst expectations, while booked room nights increased 9%.
• Consumer brands recovering: Hotels.com and Vrbo returned to growth after declines earlier in 2024, supporting overall booking momentum.
• AI seen as both risk and opportunity: Expedia is investing in AI integrations, including booking capabilities within chatbot environments, to maintain visibility in evolving travel discovery channels.
• Positive outlook maintained: The company expects continued revenue growth in both the next quarter and the full year, reflecting confidence in B2B expansion and AI-enabled distribution strategies.

Source: Expedia

Enjoying this analysis? Hospitality.today delivers daily insights on hotel distribution, AI trends, and travel commerce — straight to your inbox. Subscribe for free at Hospitality.today →