Expedia Group met the high end of its earnings expectations for the second quarter of 2024, despite a challenging macro environment and softening travel demand, according to an earnings report released Thursday.
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Expedia Group met the high end of its earnings expectations for the second quarter of 2024, despite a challenging macro environment and softening travel demand, according to an earnings report released Thursday.
The firm reported total lodging bookings of $20.7 billion for the second quarter across all of its platforms, including Expedia, Vrbo and Hotels.com, an 8 percent increase from 2023. Revenue was at $3.6 billion for the quarter, an increase of 22 percent compared to the previous year.
Room nights posted double-digit growth totaling 98.9 million in the second quarter. Growth accelerated to 10 percent, with Brand Expedia at nearly 20 percent growth. Total room nights grew at the fastest rate since the first quarter of 2023.
The company registered a net income of $386 million and an adjusted net income of $469 million.
“Our second quarter results came in at the high end of our expectations, with gross bookings and revenue growing 6 percent. We’re pleased with our momentum and the sequential improvement in our consumer brands. However, in July, we have seen a more challenging macro environment and a softening in travel demand. We are therefore adjusting our expectations for the rest of the year,” Expedia Group CEO Ariane Gorin said in a statement.
In July, Expedia saw flat average daily rates (ADRs) in the second quarter stemming from exchange rate issues, with customers trading down to lower-priced properties, executives said on an earnings call.
The company also referenced a softness in air ticket prices.
These factors collectively drove weaker-than-expected growth across both consumer and B2B businesses in July, and they are influencing the outlook for the third quarter in the full year.
Expedia expects third-quarter gross bookings and revenue growth to be in the range of 3 percent to 5 percent compared to last year.
For the full year, gross bookings are anticipated to be at the low end of the previously communicated range of mid-to-high single-digits at approximately 4 percent and revenue growth 2 points higher at approximately 6 percent.
“While the more recent market environment is challenging, it is this ongoing execution against our growth initiatives combined with our strong financial business position [that] give us confidence in our long posture of opportunity to deliver profitable growth,” Whalen said.
This article was updated with additional information from Expedia’s earnings call.
Email Richelle Hammiel
