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Sunday,  December 8, 2024   4:36 PM
Expedia Group’s B2B revenue outpacing B2C, jumps 18% in Q3
CEO of Expedia Group Ariane Gorin. (Unsplash/Expedia)

Expedia Group’s B2B business drove revenue growth for the company in this year’s third quarter. 

Expedia’s total Q3 revenue was $4.1 billion, up three per cent year over year, but revenue for the B2B business space was up 19 per cent in the period, hitting $1.2 billion, the company reported on Nov. 7.

B2B gross bookings also increased 19 per cent in the quarter compared to last year.

“Our third quarter results exceeded our expectations on gross bookings and earnings with revenue landing in-line. We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth," said Ariane Gorin, CEO of Expedia Group, in a statement.

B2B’s “massive market”

During a call with investors last week, Gorin was optimistic about future growth, noting that in 2023, Expedia Group’s B2B business accounted for 100 million room nights.

“The B2B business has a massive market,” she said. 

Some of Expedia Group’s B2B partners include Canadian Imperial Bank of Commerce and Microsoft, which has incorporated its loyalty program with Expedia for bookings on Bing Travel.

Consumer side improving

Expedia Group’s gross booking growth year over year was less for its B2C business, coming in at three per cent, but Gorin said the consumer side has been improving every quarter this year.

“We accelerated gross bookings in our consumer business for the second straight quarter driven by continued strength in brand Expedia, Vrbo returning to growth and good results in international points of sale,” Gorin said.

The company saw a 25 per cent increase in package bookings in the third quarter, driven by new product features and targeted promotions.

Vrbo (an online marketplace for vacations rentals) returned to growth with an improved app performance and expanded supply, adding nearly one million units previously only available on Brand Expedia.

The company has, however, faced some headwinds. Despite revenue growth, Q3 saw a slight margin deleverage of approximately 16 basis points.

Vrbo faced challenges due to Hurricane Milton, impacting October performance, and the company saw soft Vrbo bookings in the first half of 2024.

Expedia’s direct sales and marketing expenses increased by 11 per cent year over year, which was primarily due to higher commissions in the B2B business.

Hotels.com’s performance, meanwhile, was stable but has not returned to growth.

“We’re progressing well”

Expedia Group delivered new product features during the quarter, such as Flexible Date Search and Live Flight Tracker, both of which are designed to create better traveller experiences.

The company also continues to deploy AI capabilities in ways that make it easier for travellers to shop and that create better customer service experiences.

“We’re progressing well and maintaining our focus on accelerating growth in our consumer business, ensuring our B2B business remains industry-leading, and leveraging our unified tech platform to drive greater product and feature innovation,” wrote Gorin on LinkedIn.


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