Expedia’s B2B Surge Powers Earnings Beat as Travel Demand Defies Macro Headwinds
Expedia delivered a fourth-quarter revenue beat with $3.55 billion, topping estimates by 3.8% as its business-to-business division became the unexpected growth engine. Corporate clients drove a 24% surge in B2B gross bookings to $8.7 billion—now representing 38% of total revenue compared to 33% a year ago.
The travel giant's resurgence came alongside a 9% increase in booked room nights, reversing 2024 declines for Hotels.com and Vrbo. Shareholders gained with $255 million in stock buybacks and a 20% dividend hike to $0.48 per share, while full-year guidance suggests sustained momentum with 6-9% revenue growth projected.
CEO Ariane Gorin highlighted "structural demand shifts" as airlines and financial institutions increasingly integrate Expedia's APIs. The results sent EXPE shares up 7% in after-hours trading, outpacing the S&P 500's travel sector.
