The Seattle-based company said its business-to-business (B2B) division—which caters to corporate travel management firms, offline travel agents, and financial institutions—recorded a 26% increase in bookings during the third quarter compared with the same period last year, News.Az reports, citing Reuters.
This was driven by the addition of new travel agency customers and the expansion of Expedia's agent loyalty program, CEO Ariane Gorin said on the post-earnings call, adding the firm would continue investing in this segment.
Expedia now expects 2025 revenue to grow around 6.5%, up from the midpoint of 4% in its earlier projection. It projected its annual adjusted core profit margin to rise 2%, compared with its previous forecast of 1%.
Many consumer-focused internet companies are ramping investment and facing pressure for it, said Jake Fuller, an analyst at BTIG, noting that Expedia's expected margin expansion is a reassuring sign.
Expedia also saw its fastest growth in third-quarter U.S. room nights, a market in focus as Americans scale back travel amid inflation and economic uncertainty.
U.S. share gains were likely driven by travelers increasingly using online travel agencies and hunting for discounts, said Michael Bellisario, an analyst at Baird Equity.
However, growth in the U.S. still lagged behind international markets, with room nights in Asia up over 20%.
Unlike other travel firms, which reported strong demand for upscale and luxury offerings but weak interest in budget options, Expedia said it saw strong demand across the board.
"While our macro U.S. lodging data suggests softer patterns, some of EXPE's gains may be driven by share shift away from travel suppliers," said Gregory Miller, an analyst at Truist Securities.
He added that the trend could reflect travelers becoming price-sensitive and less brand-loyal in a choppy economic environment.
Expedia's shares trade at 12.80 times their forward profit estimates, lower than an industry median of 14.28.
