Expedia Sees 15% growth in loyalty membership and increased contributions from the B2B segment due to more affordable travel options.
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GLOExpedia’s second-quarter results showed growth in loyalty membership and increased contributions from the B2B segment due to more affordable travel options. However, the slowdown in bookings growth led to a 15% drop in the company’s shares during intraday trading on August 3.
While total gross bookings increased by 5% to $27.3 billion, the growth rate was lower compared to previous periods, where bookings surged by 20% in the first quarter of 2023 compared to the same period in 2022. Revenue saw a 6% increase to $3.4 billion.
Expedia’s CEO, Peter Kern, highlighted stable travel activity in North America and Europe, with stronger growth in the Asia-Pacific (APAC) and Latin American regions. Shorter urban stays remain popular among travelers, and some travel expenses, like airfares and rental car rates, have seen declines, making travel more affordable.
Expedia’s focus is on gaining loyalty members and app users, with active loyalty members in core brands increasing by 15% year on year. The recent introduction of a single loyalty program called “One Key” combines Expedia, Hotels.com, and VRBO into one rewards program with a combined 168 million members.
The company’s B2B business experienced a significant revenue growth of 32% year on year, reaching $861 million. Lodging gross bookings were up by 7%, primarily driven by the hotel business and the B2B segment. However, car rental and insurance contributions declined due to decreased rates amidst higher available supply.
Looking ahead, CEO Kern acknowledged a relative normalization of seasonal and booking trends after the extraordinary growth rates experienced during the reopening of economies in the previous year. The company sees potential in integrating VRBO customers into the new loyalty programs and expanding their involvement in Expedia’s product offerings, while allowing Expedia and hotels.com members to use their loyalty points on VRBO.
