Expedia Group CEO outlines three methods for utilizing AI within the yr forward

“A strong yr with a robust end,” is how new Expedia
Group chief monetary officer Scott Schenkel characterised the corporate’s This fall and
full yr 2024 monetary report as he spoke to analysts Thursday evening having simply stepped into the function. 

The corporate reported income of $3.1 billion in This fall, up 10%
yr over yr, pushed by a 21% soar in B2B income and a 25% improve in promoting
income in addition to development in any respect three of its B2C manufacturers – Expedia, Lodges.com
and Vrbo. Full yr income was $13.7 billion, up 7% in comparison with 2023.

CEO Ariane Gorin, who will mark her one-year anniversary in
the place in Could, mentioned the corporate is now targeted on utilizing its momentum from
2024 to deal with three priorities for the yr forward.

“First ship extra worth for vacationers. Second make investments the place
we see the best alternative to drive development in every a part of our enterprise. And
third proceed driving working efficiencies and increasing our margins,” she
mentioned.

And the corporate is leaning in to synthetic intelligence to
energy every of these efforts. Gorin outlined “three buckets” of methods associated
to AI throughout the corporate.

The primary is utilizing the know-how to make its merchandise
higher for B2B companions and for vacationers — guaranteeing they’ve a “pleasant
expertise that makes them need to come again” — though she didn’t present
any replace on Expedia’s AI assistant, Romie, which launched final yr.

“The second is taking a look at altering journey behaviors,” Gorin
mentioned.

“Vacationers are going to begin to search in numerous methods. And
so we have to ensure that our manufacturers are displaying up in these new locations the place
persons are utilizing gen AI native search. And luckily we’ve bought a really tech refined
advertising workforce that’s ensuring we do present up there.”

The third precedence, Gorin mentioned, is to establish “native AI
journey startups” that Expedia Group may accomplice with, for instance as a provide
accomplice.

Vrbo and Lodges.com

Talking concerning the monetary outcomes, Gorin highlighted
development at Vrbo and Lodges.com, coming after a interval when each had struggled on account of the transition to the corporate’s new tech platform.

“After I stepped in as CEO final yr, we set an ambition to
carry Vrbo and Lodges.com again to development whereas extending our strengths in model
Expedia and promoting … I’m proud with how our groups delivered towards this
name to motion,” she mentioned.

Gorin mentioned work on Vrbo’s product, advertising and provide —
the corporate added a million models primarily in city areas — helped gas the
development in 2024, and now the corporate has “some thrilling plans coming in 2025 …
so we’re going to proceed leaning in.”

For Lodges.com, Gorin mentioned it was “fairly meaningfully
impacted” by each the tech migration and modifications to OneKey, however the firm has
“large plans on reinvigorating that model that we’ll see come to life in 2025.”

Relating to OneKey, Gorin mentioned additional rollout past the United
States and United Kingdom is paused as the corporate assesses what it has realized
from how this system has impacted Expedia, Lodges.com and Vrbo. Gorin mentioned is
wanting “by model and by geography” to find out what it must do concerning
loyalty and can share extra later this yr.

Monetary outcomes

Gross bookings in This fall had been $24.4 billion, up 13% yr over
yr, and got here in at $111 billion for the complete yr, up 7%.

Booked room nights grew 12% in This fall and 9% for the complete yr,
in comparison with comparable intervals in 2023. Lodging gross bookings grew 12% yr
over yr within the quarter to $17 million and inside that lodge bookings had been up
14%.

B2C income was $2 billion and B2B was $1 billion
in This fall, up 6% and 21% respectively yr over yr. For the complete yr, B2C
income was $9.3 billion, up 2%, and B2B was $4.1 billion, up 21% in contrast
to 2023.

Adjusted EBITDA was $643 million for This fall and $2.9 billion for
the complete yr.

Just like Q3 2024, Gorin mentioned worldwide demand was
stronger than within the U.S., with booked room nights rising within the excessive single
digits within the U.S. however the low double digits in Eurpe and excessive teenagers within the
remainder of the world.

“Our B2B enterprise continues to profit from this robust
worldwide demand, particularly in APAC,” Gorin mentioned.

“And in our shopper enterprise, our world enlargement efforts
proceed to point out strong progress.”

Expedia Group’s direct gross sales and advertising bills had been
$1.5 billion in This fall, up 13% yr over yr, and $6.8 billion for the complete yr,
up 12% in comparison with 2023.