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 Viewpoint - President Trump's proposal to shift from quarterly to semiannual earnings reports is generating mixed reactions among business leaders, with some executives, like Expedia Group's CEO, expressing that it may not significantly impact internal decision-making [1] Group 1: Company Performance - In Q2, Expedia reported revenue of $3.79 billion, exceeding consensus estimates of $3.71 billion, and earnings per share of $4.24, surpassing the forecast of $3.97 [2] - The travel market is experiencing fluctuations, with a noted softness in US demand during Q2, but higher-income travelers showing resilience [2][3] - Forward bookings are a critical metric influenced by events and holidays, with increased travel traffic observed in July and August compared to the previous year [3] Group 2: Business Segments - Expedia's B2B and advertising segments are performing well, with B2B gross bookings and revenue growing by 17% and 15%, respectively, and advertising revenue increasing by 19% [4] - Consumer-facing brands like Hotels.com and Vrbo are still in recovery from previous tech migrations, impacting overall growth [4] Group 3: Analyst Ratings and Outlook - Evercore analyst Mark Mahaney raised his price target for Expedia shares to $280 from $230, citing a strong Q2 performance and positive Q3 guidance [5] - Mahaney highlighted management's raised 2025 outlook, projecting 3% to 5% revenue growth and slight margin expansion [5] - Analysts noted international growth, particularly in Northern Europe and APAC, with Japan and Brazil experiencing over 20% growth [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 - Gross bookings increased by 5% year over year, while revenue grew by 6% [6][23] - Adjusted EBITDA margins expanded by nearly two points [6][23] - Booked room nights rose by 7%, reaching 105 million [24] - Adjusted EBITDA was $908 million, with a margin of 24% [31] Business Line Data and Key Metrics Changes - B2B bookings grew by 17%, marking the sixteenth consecutive quarter of double-digit growth [9][30] - Advertising revenue increased by 19%, with a record number of active partners [9] - Brand Expedia was the largest and fastest-growing consumer brand, with multi-item attach rates at their highest since the pandemic [10] - Hotels.com bookings declined slightly, but room nights accelerated due to a brand relaunch [10] - Vrbo's room nights grew in line with the market, but bookings declined due to lower daily rates and higher cancellations [10] Market Data and Key Metrics Changes - The U.S. travel market was described as muted, with consumers at the higher end remaining resilient [7] - International revenue growth was up 13%, with notable strength in Asia, which grew almost 30% [26][30] - Bookings outside the U.S. grew by high single digits, with Brand Expedia growing 13% [17] Company Strategy and Development Direction - The company focuses on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operating efficiencies [10][19] - AI is leveraged across all priorities to enhance user experience and operational efficiency [14][20] - The company aims to optimize its marketing spend while continuing to invest in growth drivers [36] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in overall travel demand since July, particularly in the U.S. [8] - The company raised its annual guidance based on solid first-half performance and current trends [8][35] - Management expressed confidence in the company's ability to navigate a challenging U.S. consumer spending environment [38] Other Important Information - The company has $9.2 billion in total liquidity, including $6.7 billion in unrestricted cash [33] - Free cash flow on a trailing twelve-month basis was $2 billion, reflecting the strength of the asset-light model [33] - The company plans to continue share repurchases, with $2.3 billion remaining in the program [34] Q&A Session Summary Question: Future growth alignment with strategic priorities - Management expressed confidence in the portfolio mix and the ability to capture traffic from AI partners [40][42] Question: Hotels.com performance outlook - Management highlighted improvements from the brand relaunch and new capabilities like price alerts [48][50] Question: Marketing leverage in B2C business - Management discussed improvements in product quality and direct traffic conversion as key drivers for marketing leverage [55][56] Question: Promotional environment impact - Management noted an increase in supplier-driven promotions due to price sensitivity in the U.S. market [58][60] Question: AI's role in B2B growth - Management indicated that AI is being explored for onboarding inventory and enhancing customer support [66][70] Question: International growth potential - Management emphasized a focused approach to international markets, with strong growth in specific regions like Japan and Brazil [76][78] Question: Brand Expedia's market share - Management confirmed that Brand Expedia is taking share in various markets, supported by a strong value proposition [88][90] Question: Loyalty program performance - Management reported high single-digit growth in active loyalty members, particularly among higher-tier members [120][121]

Group 1 - The core focus of Expedia Group, Inc. has been on simplifying and refocusing its brand portfolio around three key brands: Expedia, Hotels.com, and Vrbo [1] - The company is also enhancing its technology capabilities to improve overall service delivery and customer experience [1]

Financial Data and Key Metrics Changes - In Q1 2025, Expedia Group reported a 43% increase in bookings and revenue, which was at the lower end of their guidance range due to weaker travel demand in the U.S. [6][7] - EBITDA grew by 16%, and earnings per share increased by 90% [7][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [7][22] - Total gross bookings reached $31.5 billion, up 4%, while revenue grew by 3% to $3 billion [24][26] Business Line Data and Key Metrics Changes - The B2B business saw a 14% increase in bookings, significantly outperforming the industry [8][22] - The advertising business delivered a robust 20% revenue growth, with a record number of deals signed [9][15] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [9][10] Market Data and Key Metrics Changes - U.S. demand was soft, with inbound travel bookings down 7%, particularly from Canada, which fell nearly 30% [25][60] - The average daily rates (ADR) were $214, down 1%, although up 1% on an FX neutral basis [24][30] - The B2B segment benefited from strong international performance, particularly in APAC, which grew by 30% [23][30] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [10][19] - AI is being leveraged to enhance product offerings, improve marketing effectiveness, and streamline operations [13][80] - The company aims to improve its loyalty program and has made adjustments to better serve travelers [108][110] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to adapt and continue delivering value [21][121] - The company expects Q2 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [35][36] - Management highlighted the importance of maintaining a diversified B2B business to mitigate risks from macro headwinds [49][117] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments [33][34] - A quarterly dividend of $0.40 per share was reinitiated, and share repurchases were accelerated [34] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1, slightly deleveraging, and will focus on profitable growth opportunities [39][42] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, noting recent brand relaunch efforts and positive momentum [40][41] Question: Managing macro headwinds - Management highlighted the strength and diversity of the B2B business, which is well-positioned to handle macroeconomic challenges [48][49] Question: Monthly trends and consumer behavior - Management noted a slowdown in April compared to March, with a shift towards lower ADR rate plans and increased discounts from hotel partners [60] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [65][69] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [75][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows and highlighted strong growth in the B2B segment, particularly in Asia [89][90] Question: B2B performance and advertising impact - Management confirmed that while B2B experienced some pressure, it remained diversified and continued to grow, with advertising business prospects remaining strong [115][117]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a 43% increase in bookings and revenue, which was at the lower end of the guidance range due to weaker travel demand in the U.S. [5][22] - EBITDA grew by 16%, and earnings per share increased by 90% [5][22] - Booked room nights grew by 6%, with low single digits growth in the U.S., mid single digits in Europe, and mid-teens growth in the rest of the world [6][22] Business Line Data and Key Metrics Changes - The B2B business posted a 14% bookings growth, outperforming the industry [7][22] - The advertising business achieved a robust 20% revenue growth [8][22] - Brand Expedia was the fastest-growing consumer brand with room nights up 7%, while Vrbo grew modestly and Hotels.com experienced a decline due to softer U.S. demand [8][22] Market Data and Key Metrics Changes - U.S. demand was soft, driven by declining consumer sentiment, with inbound travel to the U.S. down 7% and bookings from Canada falling nearly 30% [6][25] - The company noted a shift in consumer behavior, with travelers opting for lower average daily rates [61] Company Strategy and Development Direction - The company is focused on three strategic priorities: delivering more value for travelers, investing in growth opportunities, and driving operational efficiencies [9][18] - AI is being leveraged to enhance product experiences, improve marketing effectiveness, and streamline operations [13][80] - The company is expanding its B2B business and enhancing advertising solutions to drive future growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macroeconomic environment but expressed confidence in the company's ability to navigate challenges and continue delivering value [21][120] - The company expects Q2 2025 gross bookings growth of 2% to 4% and revenue growth of 3% to 5%, with EBITDA margin expansion of 75 to 100 basis points [36][37] Other Important Information - The company ended the quarter with $6.1 billion in unrestricted cash and short-term investments and maintained a total debt of $6.3 billion [34][35] - The company reinitiated a quarterly dividend of $0.40 per share and accelerated stock repurchases [35] Q&A Session Summary Question: Marketing spend and ROI - Management indicated that they spent about $1 billion on marketing in Q1 and will focus on profitable growth opportunities while reducing costs where necessary [45][46] Question: Hotels.com turnaround - Management expressed optimism about Hotels.com, highlighting recent brand relaunch efforts and positive momentum [44][46] Question: Managing macro headwinds - Management noted the B2B business's geographic and segment diversity, which helps mitigate macroeconomic pressures [51][52] Question: Monthly trends and consumer behavior - Management reported that April was softer than March, with a shift towards lower average daily rates and increased discounts from hotel partners [61] Question: Experiences and attractions investment - Management acknowledged the growing importance of experiences and attractions but did not provide specific investment details [70] Question: AI investments - Management discussed the strategic importance of AI in enhancing products, driving traffic, and improving team effectiveness [76][80] Question: Booking curve and international rollout - Management noted a mixed picture in booking windows, with slight expansion for hotels and decline for vacation rentals, while the B2B business showed strong growth in Asia [88][89] Question: B2B performance and advertising impact - Management confirmed that while the B2B business faced some pressure from U.S. softness, it remained globally diversified and continued to grow [118][119]

Core Viewpoint - Expedia Group (EXPE) is expected to report first-quarter 2025 results on May 8, with revenues estimated at $3.03 billion, reflecting a 4.76% increase year-over-year, and earnings per share projected at 42 cents, indicating a 100% increase from the previous year [1][4]. Financial Performance - The Zacks Consensus Estimate for EXPE's first-quarter 2025 revenues is $3.03 billion, a 4.76% increase from the prior year's quarter [1]. - The earnings consensus is 42 cents per share, revised down by 2 cents in the last 30 days, but still suggests a 100% increase year-over-year [1]. Historical Performance - EXPE has exceeded the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 45.86% [2]. Growth Factors - The company's performance is anticipated to be influenced by international demand, strategic investments, and cost discipline [4]. - Gross bookings are projected to grow by 4% to 6%, with revenue growth expected between 3% to 5%, excluding a two-point foreign exchange headwind and the Easter shift [5]. - Underlying growth, when excluding these factors, is expected to be between 7% to 9% [5]. Segment Performance - Vrbo is likely to continue its growth momentum, supported by expanded urban inventory and improved supply quality [6]. - Brand Expedia is expected to benefit from merchandising actions in air and package products, driving incremental bookings without additional marketing costs [6]. - The B2B segment, which accounted for 27% of total bookings in 2024, is expected to remain strong, particularly in the APAC region [7]. - Advertising revenues, which grew by 25% in the fourth quarter, are anticipated to continue being a significant contributor to top-line growth [8]. Profitability Metrics - Adjusted EBITDA margins for the first quarter are expected to remain flat to slightly up year-over-year, reflecting sustained overhead and marketing efficiency [9]. - Cost-saving actions taken in 2024 are expected to support profitability despite seasonal and foreign exchange pressures [9]. Earnings Outlook - According to the Zacks model, EXPE has a positive Earnings ESP of +14.86% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [10].