Expedia Group reported record revenue in the third quarter amid solid travel demand.
While travel demand in North America and Europe remained stable, the Asia-Pacific and Latin America regions experienced more pronounced growth, Expedia Group CEO Peter Kern said Thursday (Nov. 2) during the company’s quarterly earnings call.
Expedia Group’s financial results for the quarter ended Sept. 30 exceeded expectations, with record quarterly revenue of $3.9 billion. The company also announced a new $5 billion share repurchase authorization, demonstrating its commitment to maximizing shareholder returns.
“Our high-level strategy is not going to change: best product, best loyalty program, best marketplace and best service,” Kern said during the call.
The company plans to leverage its artificial intelligence (AI) and machine learning (ML) capabilities to enhance the customer experience. Kern emphasized the importance of these technologies in improving the planning and booking process for travelers.
Expedia Group’s business-to-business (B2B) sector had a 26% revenue growth in the third quarter year over year (YoY). This growth can be attributed to the increasing demand from China partners, with Q3 bookings up over 150% YoY, Kern said.
Kern expressed confidence in the continued strength of Expedia Group’s B2B business, driven by platform improvements and the application of AI and ML. Additionally, Expedia Group’s business-to-consumer (B2C) sector showed positive momentum, with YoY revenue growth in Q3 accelerating over 400 basis points sequentially.
Expedia Group’s commitment to innovation and AI and machine learning capabilities positions the company to outperform its competitors in the travel industry, Kern said, adding that the company is focused on driving growth and efficiency.
The completion of the Vrbo migration and the launch of the loyalty program, One Key, during the quarter have positioned Expedia Group for future growth, Kern said. Over 82 million members have already migrated to One Key, and the company has seen a 34% increase in new loyalty program members compared to last year.
With strong free cash flow and liquidity of $7.6 billion, Expedia Group is well-positioned for future growth and innovation in the travel industry, Kern said. The company plans to continue investing in its products, loyalty program, marketplace and service to ensure its competitiveness.