SEATTLE--(BUSINESS WIRE)--Expedia Group today announced it has entered into an agreement to acquire Tiqets, an Amsterdam-based global platform for activities and experiences. This agreement expands Expedia Group's capabilities for the sizeable and rapidly growing travel segment of activities and experiences, and enhances our ability to deliver more comprehensive, full-trip travel solutions for millions of travelers and partners globally. The transaction, which remains subject to Works Council advice and oth ...

Financial Data and Key Metrics Changes - The company reported a 12% increase in bookings and a 9% increase in revenue for Q3 2025, with EBITDA margin expanding by over two points [5][14][15] - Gross bookings reached $30.7 billion, with a 12% year-over-year growth, benefiting from foreign exchange [15][20] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, reflecting revenue and expense leverage [17][20] Business Line Data and Key Metrics Changes - B2B bookings increased by 26%, marking the 17th consecutive quarter of double-digit growth, while advertising revenue grew by 16% [6][15] - B2C gross bookings were $21.3 billion, growing 7% year-over-year, with B2C revenue at $2.9 billion, up 4% [15][16] - The company saw strong performance in its consumer brands, particularly in Europe, with Expedia being the largest and fastest-growing brand [6][16] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years, while EMEA saw low double-digit growth and Asia over 20% [6][14] - The company experienced strong demand for premium travel, with growth in both high-end and lower-end segments [15] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced loyalty programs [7][9] - Investment in B2B and advertising continues to be a priority, with new tools and AI integration driving growth [10][11] - The company is leveraging AI to improve operational efficiencies and enhance customer service [12][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value for stakeholders, despite monitoring economic indicators [12][20] - The company raised its full-year guidance based on strong Q3 results and ongoing trends [5][20] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments, maintaining a strong cash position [19] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting the strength of the operating model [19] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, driven by strong supply and technology, with a focus on signing new partners and enhancing product offerings [24][25] Question: Sources of margin expansion - Management identified sales and marketing optimization, cost of sales management, and overhead control as key sources for future margin expansion [31][33] Question: Update on replatforming and brand performance - Management noted that replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong results [41][44] Question: Direct bookings and marketing efficiency - Management reported that direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: Outlook for Q4 and government shutdown impact - Management expressed confidence in Q4 guidance while monitoring potential impacts from the government shutdown [86][88] Question: International travel dynamics - Management indicated that inbound travel to the U.S. is nearly back to last year's levels, with healthy growth across various corridors [95]

Financial Data and Key Metrics Changes - Bookings increased by 12% and revenue grew by 9%, with EBITDA margin expanding by over 2 points [5][16][17] - Gross bookings reached $30.7 billion, reflecting a 12% year-over-year increase, with a 1-point benefit from foreign exchange [17] - Adjusted EBITDA was $1.4 billion, with a margin of 33%, driven by revenue and expense leverage [19] Business Line Data and Key Metrics Changes - B2C gross bookings were $21.3 billion, growing 7% year-over-year, while B2C revenue increased by 4% to $2.9 billion [18] - B2B gross bookings surged by 26% to $9.4 billion, with B2B revenue growing by 18% [18] - Advertising revenue rose by 16%, marking another double-digit growth quarter [17] Market Data and Key Metrics Changes - In the U.S., room nights increased by high single digits, marking the fastest growth in over three years [7][16] - EMEA saw low double-digit growth in room nights, while Asia experienced over 20% growth [7] - B2B bookings increased for the 17th consecutive quarter, with a 26% rise [7] Company Strategy and Development Direction - The company is focused on delivering more value to travelers through personalized experiences and enhanced product offerings [8][10] - Investment in growth opportunities, particularly in B2B and advertising, is a key strategic priority [10][11] - The integration of AI into products is expected to drive engagement and improve operational efficiencies [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute and create value amidst a dynamic macro environment [14][15] - The company raised its full-year guidance based on strong demand trends observed in Q3 [6][22] - Economic indicators are being monitored closely, with a focus on maintaining agility in operations [14][22] Other Important Information - The company ended the quarter with $6.2 billion in unrestricted cash and short-term investments [21] - Free cash flow on a trailing 12-month basis was $3 billion, reflecting a strong operating model [21] - The company has $1.8 billion remaining in its share repurchase program [21] Q&A Session Summary Question: Thoughts on B2B growth and competitive environment - Management highlighted exceptional B2B performance, emphasizing strong supply and technology as key growth drivers [26][28] Question: Sources of margin expansion - Margin expansion is expected from optimized sales and marketing, improved cost of sales, and overhead management [34][35] Question: Update on replatforming and brand performance - Replatforming has enabled better scale and performance across brands, with Hotels.com and Vrbo showing strong growth [41][44] Question: Direct bookings and marketing efficiency - Direct bookings account for about two-thirds of consumer business, with ongoing improvements in conversion rates [68][70] Question: U.S. room nights acceleration drivers - Room nights growth was driven by strong performance across both consumer and B2B segments [73][75] Question: Outlook for Q4 amidst potential government shutdown - Guidance reflects stable trends, with monitoring of the government shutdown's potential impact on travel demand [86][89]

Q3 2025 Earnings N O V E M B E R 2 0 2 5 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation contains "forward-looking statements" about Expedia Group's financial performance, operating results, and guidance, which may include, but are not limited to, statements relating to future gross bookings; revenues; expenses; margins and margin expansion, including EBITDA margin expansion; profitability; net income (loss); earnings per share; and other measures of result ...

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Core Insights - Expedia Group's annual report, "Unpack '26," highlights significant shifts in traveler behavior and emerging travel trends for 2026, focusing on sustainable tourism and unique experiences [1][28]. Travel Trends - The report identifies seven key travel trends for 2026, including Set-Jetting, Hotel Hop, Farm Charm, Readaways, Fan Voyage, and Salvaged Stays, reflecting a growing interest in immersive and local experiences [5][32]. - Set-Jetting, inspired by movies and TV shows, is projected to become an $8 billion industry in the U.S., with 81% of Gen Z and Millennial travelers planning trips based on screen inspirations [22][26]. - Hotel Hop is gaining traction, with 54% of travelers opting to book multiple hotels within a single destination, particularly popular among younger travelers [15][32]. - Farm Charm is on the rise, with 84% of travelers expressing interest in farm stays, indicating a shift towards nature-based, slow travel experiences [17][32]. - Readaways, focusing on reading and relaxation, are appealing to 91% of travelers, with a notable increase in interest for literary-themed retreats [4][17]. Destinations of the Year - The 2026 Destinations of the Year list features locations with significant search increases, including Big Sky, Montana (+92%), Okinawa, Japan (+71%), and Sardinia, Italy (+63%), showcasing rising global traveler interest [8][32]. - Six of these destinations meet the criteria for Expedia's Smart Travel Health Check, which emphasizes sustainable tourism practices [6][25]. Hotels of the Year - The 2026 Hotels of the Year list highlights the trend of Salvaged Stays, where historical buildings are repurposed into unique accommodations, with properties like Hotel Seiryu Kyoto Kiyomizu showing a 194% increase in searches [12][13]. - The report indicates a growing demand for hotels that combine historical architecture with modern amenities, appealing to travelers seeking character and cultural relevance [12][32]. Fan Voyage - The Fan Voyage trend reveals a surge in interest for local sporting events, with 57% of travelers likely to attend regional sports while traveling, emphasizing the importance of community and culture [9][10].

Core Insights - Expedia Group, Inc. is a leading online travel solutions provider with a market cap of $27.7 billion, operating platforms like Expedia, Vrbo, and Travelocity [2][5] - The company reported strong Q2 2025 results, with gross bookings of $30.41 billion (up 5% YoY) and revenue of $3.79 billion (up 6% YoY), exceeding analyst expectations [5][6] - Expedia's stock has outperformed its peers, gaining 55.2% over the past 52 weeks and 20% year-to-date, while the Invesco Dynamic Leisure and Entertainment ETF (PEJ) gained 30.1% and 18.5% respectively [3][4][6] Financial Performance - Q2 2025 adjusted EPS was $4.24, a 21% increase YoY, surpassing the expected $4.14 [5] - The company raised its growth projections for 2025 gross bookings and revenue from 2%-4% to 3%-5% [6] Stock Performance - Expedia's shares have declined 2.5% from a 52-week high of $229 but gained 35.6% over the past three months [3][4] - The stock has been trading mostly above its 50-day and 200-day moving averages since last year [4] Analyst Ratings - Expedia has a consensus rating of "Moderate Buy" from 33 analysts, with a mean price target of $223.67 [6]

Core Insights - Expedia is rapidly integrating artificial intelligence (AI) across its operations, enhancing personalized travel recommendations, customer service, and operational efficiency [2][3][5] - The company reported a significant increase in gross bookings in its B2B segment, with a 17% rise to $8.8 billion, driven by growth in Asia and Europe [6][11] - Despite mixed performance in the U.S. market, Expedia's international revenue grew by 13%, indicating strong momentum in regions like Japan, Brazil, and Northern Europe [6][9] AI Integration - CEO Ariane Gorin emphasized that AI is utilized in every function of the company, with all employees having AI-related goals [3][4] - AI-powered customer service has led to record high net promoter scores and cost reductions [3] - The company is exploring agentic AI to automate inventory management and improve customer issue resolution [4][5] Financial Performance - For Q2, Expedia reported a net income of $330 million, or $2.48 per share, down from $386 million, or $2.80 per share, year-over-year [10] - Revenue increased to $3.79 billion from $3.56 billion a year ago, surpassing analyst expectations [10][11] - Adjusted EBITDA rose 16% to $908 million, reflecting improved operational performance [10] Market Trends - The company noted a cautious approach to discretionary spending among lower-end consumers, while higher-end consumers remain resilient [7] - There was a noted weakness in foreign travel to the U.S., shorter booking windows, and higher cancellation rates [7][9] - Expedia's flagship brands, including Hotels.com and Vrbo, are seeing improvements and new feature introductions post-platform migrations [8][9] Future Outlook - Expedia raised its revenue growth outlook for the year to 3% to 5%, up from a previous estimate of 2% to 4% [11] - The company plans to roll out additional B2B APIs to enhance travel booking capabilities for businesses [5][11] - Traffic from generative AI searches is small but growing rapidly, converting into bookings at higher rates than other traffic sources [5]

Financial Data and Key Metrics Changes - The company updated its full-year EBIT guidance to a range of $600 million to $800 million, reflecting a significant drop from the previous guidance of $1.7 billion due to a decline in the macro environment and higher fuel costs [11][12][26] - The company expects a meaningful year-over-year improvement in EBIT despite the revised guidance, with significant EBIT expansion anticipated in 2026 as initiatives ramp up [11][12][26] Business Line Data and Key Metrics Changes - The revenue contribution from bag fees has exceeded expectations, with an estimated EBIT contribution of over $350 million for the full year 2025, which is higher than initial estimates [27][28] - The company has successfully implemented a basic economy product and check bag fees, with no negative operational impact observed [15][50] Market Data and Key Metrics Changes - The macro environment stabilized in the second quarter, with signs of improvement in industry demand and recent bookings showing positive trends [11][12][36] - The company expects to benefit from a recovery in domestic demand due to its overweighting in the domestic market [12] Company Strategy and Development Direction - The company is undergoing a transformational journey aimed at evolving its product offerings and increasing shareholder value, with a focus on cost reduction and operational efficiency [5][6][10] - New initiatives include the introduction of assigned premium seating and enhanced benefits for co-brand credit cards, which are expected to drive incremental revenue [10][21][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current industry demand environment and achieve EBIT targets through various initiatives [26][36] - The company is optimistic about the future, with plans to continue executing its transformational initiatives and enhancing customer value [12][36] Other Important Information - The company has authorized a new $2 billion share repurchase program, demonstrating confidence in its strategic plan and financial position [12][35] - The company has increased its aircraft delivery assumptions for 2025 from 38 to 47, reflecting positive trends in Boeing's production ramp-up [33][79] Q&A Session Summary Question: How should we think about the EBITDA initiatives ramping up over Q3 and Q4? - Management indicated that the majority of this year's expected EBIT will be produced in Q4 due to the ramp-up of initiatives and improvements in the demand environment [40][42] Question: Is the rollout of bag fees tracking ahead of plan? - Management confirmed that the rollout has exceeded expectations, with no operational impact and an increase in checked bags per passenger [48][50][52] Question: What is the outlook for corporate travel demand? - Management noted a positive trend in corporate travel, with improvements observed from May to August [93][96] Question: How do you plan to handle aircraft sales in terms of cash flow and P&L? - Management explained that aircraft sales will provide cash proceeds and book gains, contributing positively to cash flow [91][92] Question: What percent of tickets are clearing at an ultra-low-cost carrier fare? - Management indicated that roughly half of the seats are being sold in the lowest fare category, reflecting a shift in customer behavior [100][102]

Financial Data and Key Metrics Changes - The company updated its full-year EBIT guidance to $600 million to $800 million, reflecting a nearly $1 billion drop due to a decline in the macro environment and a $100 million decrease from higher fuel costs [9][10][23] - The company expects significant EBIT expansion in 2026 as the value contribution from its initiatives continues to accelerate [9][10] Business Line Data and Key Metrics Changes - The revenue contribution from bag fees has exceeded expectations, with an estimated EBIT contribution of over $350 million for the full year 2025, compared to initial estimates [25] - The company has successfully executed its cost savings target of $370 million for 2025, primarily through headcount reductions and other cost-saving measures [26] Market Data and Key Metrics Changes - Industry demand stabilized in the second quarter, with recent bookings showing clear signs of improvement [9] - The company outperformed its large industry peers on domestic unit revenue, with a year-over-year RASM decline of 3.1% in the second quarter [20][21] Company Strategy and Development Direction - The company is on a transformational journey, focusing on evolving its product offerings and delivering increased value for shareholders [4][10] - New initiatives include the introduction of a basic economy product and the rollout of assigned premium seating, which are expected to enhance product differentiation [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving demand environment and the company's ability to execute its initiatives effectively [9][10] - The company anticipates a constructive backdrop for the second half of the year and into 2026, driven by improved demand and cost discipline [9][10] Other Important Information - The company has authorized a new $2 billion share repurchase program, expected to be completed over two years, reflecting confidence in its transformational plan [10][33] - The company has increased its aircraft delivery assumptions from 38 to 47 for 2025, indicating positive progress from Boeing [30][80] Q&A Session Summary Question: How should we think about the EBITDA initiatives ramping up over Q3 and Q4? - Management indicated that the majority of this year's expected EBIT will be produced in Q4 due to a combination of initiatives ramping up and assumptions around demand improvement [40][42] Question: Is the rollout of bag fees tracking ahead of plan? - Management confirmed that the rollout has exceeded expectations, with no operational impact and an increase in checked bags per passenger [48][52] Question: Does the macro plus basic economy explain the entire decline in core EBIT? - Management stated that the decline is fully explained by macro impacts and the challenges faced with the basic economy rollout [62] Question: What percent of tickets are clearing at an ultra-low-cost carrier fare? - Management noted that roughly half of seats are being sold in the basic economy bucket, indicating a shift in customer behavior [100][104] Question: Is there any interest in the MAX 10 aircraft once approved? - Management hinted at potential interest in further segmentation of premium demand but did not provide specific details [105]