Expedia forecasts upbeat 2026 bookings on demand from business clients

Core Viewpoint - Expedia forecasts 2026 gross bookings and revenue to exceed Wall Street expectations, driven by strong demand from business clients [1] Group 1: Financial Projections - Gross bookings for 2026 are expected to be between $127 billion and $129 billion, surpassing analysts' average estimate of $125.95 billion [1] - Annual revenue is projected to be in the range of $15.6 billion to $16 billion, with the midpoint exceeding analysts' estimate of $15.69 billion [1] Group 2: Business Segment Performance - The business-to-business (B2B) segment has seen growth due to new client additions, including airlines and offline travel agents [1] - Gross bookings in the B2B division increased by 24% in the fourth quarter, compared to a 5% increase in the direct-to-consumer unit [1] Group 3: Market Trends and Consumer Behavior - Cost-conscious travelers are driving demand for online travel agencies, seeking value through deals and discounts [1] - Expedia reported a 70% increase in partners participating in Black Friday sales, with 30% of fourth-quarter bookings coming from discounted inventory [1] Group 4: Financial Performance - Adjusted profit for the fourth quarter was $3.78 per share, up from $2.39 per share a year earlier [1] - Total revenue for the fourth quarter rose by 11.4% to $3.54 billion [1]