Expedia Group reports double-digit Q4 growth as AI strategy takes shape
Summary
Expedia Group's Q4 2025 results show 11% year-on-year growth in revenue and gross bookings, reflecting successful adaptation to AI-driven travel discovery. Direct bookings are growing faster than indirect channels, with two-thirds of bookings starting on Expedia brands. The B2B sector surged, growing by 24%.
Key Insights
- •B2B gross bookings rose 24% in the quarter, outperforming consumer growth across all regions.
- •Expedia Group's Q4 2025 revenue and gross bookings grew 11% year-on-year.
Action Items
- ✓Keep abreast of AI-driven changes within the major OTAs (Airbnb, VRBO, Booking.com) to ensure your listings are visible in AI-powered search results.Effort: lowImpact: medium
- ✓Monitor the performance of different booking channels (direct vs. indirect) to refine your OTA strategy and direct booking efforts.Effort: lowImpact: medium
More from Growth & Marketing
Airbnb is offering a $750 incentive to attract new hosts to list their properties for the World Cup. This move aims to ensure sufficient accommodation for visitors during the event. This initiative highlights the importance of short-term rentals in accommodating large-scale events and provides a financial benefit for new hosts.
Marriott and Wyndham's adoption of agentic AI is putting pressure on Online Travel Agencies (OTAs), potentially cutting them out of the picture. However, analysts believe these fears are overstated because most hotels are independents. Booking Holdings saw its share price drop 30% due to these concerns. Independent hosts should keep an eye on OTA strategies to stay competitive.
Airbnb is incentivizing new hosts with a $750 bonus ahead of the upcoming World Cup, likely to boost supply during the anticipated surge in demand. This initiative aims to increase the number of available listings. New hosts can capitalize on this program to maximize early revenue.
Curated by Learn STR by GoStudioM