1215a987c3909e2ca6814f587314f45a552c84e12fcc8fedb23f5d4b72bea651

| Metric (USD Million) | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| B2C Segment          | 1,874  **[0001324424-23-000005_earningsrelease-q42022.htm:1]**  | 1,921  **[0001324424-23-000031_expe-20230331.htm:27]**  | 2,415  **[0001324424-23-000048_expe-20230630.htm:30]**  | 2,819  **[0001324424-23-000060_expe-20230930.htm:34]**  | 1,958  **[0001324424-24-000005_earningsrelease-q42023.htm:3]** **[0001324424-24-000005_earningsrelease-q42023.htm:0]**  | 1,986  **[0001324424-24-000026_expe-20240331.htm:30]**  | 2,432  **[0001324424-24-000038_expe-20240630.htm:30]**  | 2,780  **[0001324424-24-000052_expe-20240930.htm:34]**  |
| B2B Segment          | 676  **[0001324424-23-000005_earningsrelease-q42022.htm:1]**    | 668  **[0001324424-23-000031_expe-20230331.htm:27]**    | 861  **[0001324424-23-000048_expe-20230630.htm:30]**    | 995  **[0001324424-23-000060_expe-20230930.htm:34]**    | 864  **[0001324424-24-000005_earningsrelease-q42023.htm:3]** **[0001324424-24-000005_earningsrelease-q42023.htm:0]**    | 833  **[0001324424-24-000026_expe-20240331.htm:30]**    | 1,049  **[0001324424-24-000038_expe-20240630.htm:30]**  | 1,178  **[0001324424-24-000052_expe-20240930.htm:34]**  |
| trivago Segment      | 106  **[0001324424-23-000005_earningsrelease-q42022.htm:1]**    | 76  **[0001324424-23-000031_expe-20230331.htm:27]**     | 82  **[0001324424-23-000048_expe-20230630.htm:30]**     | 115  **[0001324424-23-000060_expe-20230930.htm:34]**    | 65  **[0001324424-24-000005_earningsrelease-q42023.htm:3]** **[0001324424-24-000005_earningsrelease-q42023.htm:0]**     | 70  **[0001324424-24-000026_expe-20240331.htm:30]**     | 77  **[0001324424-24-000038_expe-20240630.htm:30]**     | 102  **[0001324424-24-000052_expe-20240930.htm:34]**   |
| Total Revenue        | 2,618  **[0001324424-23-000005_earningsrelease-q42022.htm:1]**  | 2,665  **[0001324424-23-000031_expe-20230331.htm:27]**  | 3,358  **[0001324424-23-000048_expe-20230630.htm:30]**  | 3,929  **[0001324424-23-000060_expe-20230930.htm:34]**  | 2,887  **[0001324424-24-000005_earningsrelease-q42023.htm:3]** **[0001324424-24-000005_earningsrelease-q42023.htm:0]**  | 2,889  **[0001324424-24-000026_expe-20240331.htm:30]**  | 3,558  **[0001324424-24-000038_expe-20240630.htm:30]**  | 4,060  **[0001324424-24-000052_expe-20240930.htm:34]**  |

dd3c27078c8fef0cf5d6f24c51a6585e8367b3500af0ca550f2252120749c18d

493c2c50f977c367f4fe80cadddb9b73d309a02b2bdfd0af6ce6ca09814e1a51

Expedia Group, Inc. is a global leader in online travel and technology, providing a comprehensive range of travel products and services to both leisure and corporate travelers. The company operates through a diverse portfolio of consumer brands, including Brand Expedia, Hotels.com, Vrbo, trivago, Orbitz, Travelocity, Hotwire, Wotif, ebookers, CheapTickets, Expedia Group Media Solutions, CarRentals.com, and Expedia Cruises **[0001324424-24-000007_expe-20231231.htm:3]** **[0001324424-24-000052_expe-20240930.htm:5]** **[0001324424-24-000007_expe-20231231.htm:103]**. Expedia's business activities are structured around three primary business models: the merchant model, the agency model, and the advertising model, with lodging being the largest revenue contributor **[0001324424-24-000007_expe-20231231.htm:8]** **[0001324424-24-000052_expe-20240930.htm:34]**. The company leverages its extensive supply portfolio and technology capabilities to empower travelers to efficiently research, plan, book, and experience travel **[0001324424-24-000007_expe-20231231.htm:3]** **[0001324424-24-000038_expe-20240630.htm:22]**.

1. **Merchant Model** - Acts as the merchant of record for bookings, handling transactions and customer service for travel products.
2. **Agency Model** - Facilitates bookings by acting as an agent, connecting travelers with travel service providers.
3. **Lodging** - Offers a wide range of accommodation options, including hotels, vacation rentals, and other lodging services.
4. **Advertising Model** - Provides media and advertising solutions, including targeted advertising and promotional opportunities.
5. **B2B Segment** - Delivers business-to-business travel solutions, contributing significantly to overall revenue growth.
6. **Air Revenue** - Includes sales and bookings of airline tickets and related services.

2d9986a58c88ffc93f4c352f7d8c1b198ad70c514cd740ee59332f56f240f3db

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| U.S. Points of Sale  | **1,717**  **[0001324424-23-000005_earningsrelease-q42022.htm:9]**  | **1,748**  **[0001324424-23-000029_earningsrelease-q12023.htm:2]**  | **2,172**  **[0001324424-23-000042_earningsrelease-q22023.htm:2]**  | **2,440**  **[0001324424-23-000058_earningsrelease-q32023.htm:2]**  | **1,787**  **[0001324424-24-000005_earningsrelease-q42023.htm:3]**  | **1,793**  **[0001324424-24-000024_earningsrelease-q12024.htm:2]**  | **2,246**  **[0001324424-24-000036_earningsrelease-q22024.htm:2]**  | **2,435**  **[0001324424-24-000049_earningsrelease-q32024.htm:2]**  |
| Non-U.S. Points of Sale | **901**  **[0001324424-23-000005_earningsrelease-q42022.htm:9]**  | **917**  **[0001324424-23-000029_earningsrelease-q12023.htm:2]**  | **1,186**  **[0001324424-23-000042_earningsrelease-q22023.htm:2]**  | **1,489**  **[0001324424-23-000058_earningsrelease-q32023.htm:2]**  | **1,100**  **[0001324424-24-000005_earningsrelease-q42023.htm:3]**  | **1,096**  **[0001324424-24-000024_earningsrelease-q12024.htm:2]**  | **1,312**  **[0001324424-24-000036_earningsrelease-q22024.htm:2]**  | **1,625**  **[0001324424-24-000049_earningsrelease-q32024.htm:2]**  |
| Total Revenue        | **2,618**  **[0001324424-23-000005_earningsrelease-q42022.htm:9]**  | **2,665**  **[0001324424-23-000029_earningsrelease-q12023.htm:2]**  | **3,358**  **[0001324424-23-000042_earningsrelease-q22023.htm:2]**  | **3,929**  **[0001324424-23-000058_earningsrelease-q32023.htm:2]**  | **2,887**  **[0001324424-24-000005_earningsrelease-q42023.htm:0]**  | **2,889**  **[0001324424-24-000024_earningsrelease-q12024.htm:2]**  | **3,558**  **[0001324424-24-000036_earningsrelease-q22024.htm:2]**  | **4,060**  **[0001324424-24-000049_earningsrelease-q32024.htm:2]**  |

efe160f67e88cd0030d9a915f4661c105617c909c2ffa6390096cbedb6a3df30

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

499d1988227584dffaf3c7837f2f43f0a2a0fdd67470cd2514a3bf9d35b90fac

1. "Despite Vrbo returning to modest growth, what specific strategies are you implementing to accelerate its growth to match or surpass competitors in the alternative accommodations space, particularly in underpenetrated international markets?"  **[EXPE_3406741_9]** 
2. "With the addition of approximately 1 million units from Expedia to Vrbo, predominantly in urban areas and shorter stays, how do you anticipate this shift will impact Vrbo's margins and returns, and are there differences in profitability compared to your traditional inventory?"  **[EXPE_3406741_12]** 
3. "How are recent regulatory updates in markets like California and Hawaii affecting your outlook for the U.S. alternative accommodations market, and do you view these as isolated incidents or indicative of a broader trend that could pose challenges to your growth potential?"  **[EXPE_3406741_15]** 
4. "Given the deleverage in sales and marketing expenses due to higher commissions in your B2B business and increased investments in Vrbo and international markets, how do you plan to balance these rising costs while aiming for EBITDA margin improvement, especially as you enter 2025?"  **[EXPE_3406741_4]** **[EXPE_3406741_5]** 
5. "Considering Julie Whalen's announcement of her impending departure as CFO, what measures are you taking to ensure continuity in your financial leadership, and how might this transition impact your strategic focus and financial goals for the upcoming year?"  **[EXPE_3406741_4]** 

ea73e6edecb201629ad2735d577765a7a2c3805c847e1e03d38e10e2ed01d3a8

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  - **Q4 2024 Guidance**:
    - **Gross Bookings Growth**: Expected to be in the range of **6% to 8%** versus last year.
    - **Revenue Growth**: Expected to be about **1 point lower** than gross bookings growth.
    - **EBITDA and EBIT Margins**: Expected to be relatively in line with last year as they continue to invest in marketing for Vrbo and international markets  **[EXPE_3406741_5]** .
  - **FY 2024 Guidance**:
    - **Gross Bookings Growth**: Expected to be approximately **5%** versus last year, which is up 1 point relative to their prior outlook.
    - **EBITDA and EBIT Margins**: Expected to be slightly up versus last year, an improvement from their prior outlook of flat levels.
    - **Revenue Growth**: Guidance remains at approximately **6%** growth versus last year  **[EXPE_3406741_5]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  - **Q3 2024 Guidance**:
    - **Gross Bookings and Revenue Growth**: Expected to be in the range of **3% to 5%** versus last year.
    - **EBITDA and EBIT Margins**: Expected to experience approximately **100 basis points of deleverage** compared to last year due to marketing investments in Vrbo and international markets  **[EXPE_3397553_5]** .
  - **FY 2024 Guidance**:
    - **Revenue Growth**: Expected to be approximately **6%** for the full year, which is 2 points higher than the gross bookings growth.
    - **Gross Bookings Growth**: Expected to be at the low end of the previously communicated range of mid- to high single digits, at approximately **4%** for the full year.
    - **EBITDA and EBIT Margins**: Expected to be relatively in line with last year  **[EXPE_3397553_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Full Year Guidance**:
    - **Top Line Growth**: Expected to be in the range of **mid- to high single-digit growth**.
    - **EBITDA and EBIT Margins**: Expected to be relatively in line with last year  **[EXPE_3382240_3]** .
  - **Q2 2024 Guidance**:
    - **Top Line Growth**: Expected to deliver growth in the **mid-single digits**, reflecting a sequential acceleration in gross bookings from the first quarter.
    - **Revenue Growth**: Expected to be lower than the first quarter growth rate due to lower gross bookings in the first quarter, the pull forward of Easter stays into the first quarter, and contra revenue arising from pricing actions.
    - **EBITDA and EBIT Margins**: Expected to experience some pressure versus last year, but when combined with first quarter outperformance, margins are expected to be relatively in line with last year to slightly above in the first half  **[EXPE_3382240_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Top Line Growth**: Expected to be relatively in line with what was seen in 2023, which was about **9.5% to 10%** in Gross Booking Value (GBV) and **10%** on revenue.
  - **Margin Expansion**: Anticipated to be relatively in line with the **75 basis points** expansion seen in 2023.
  - **EBITDA**: Expected to deliver another record year of EBITDA with EBITDA margin expansion at levels relatively similar to what was seen in 2023.
  - **Leverage Ratio**: Aim to achieve a target leverage ratio of approximately **2x** this year, supported by EBITDA growth and potential early repayment of debt.
  - **Free Cash Flow**: Expected strong free cash flow growth, driven by EBITDA growth and CapEx efficiencies.
  - **Q1 2024 Outlook**: Expected gross bookings growth in the first quarter to be in the low to mid-single digits and revenue growth to be in the mid-single digits. Additionally, anticipate some EBITDA margin compression consistent with the levels seen in Q1 of the previous year.
  - **Marketing Strategy**: Plan to invest in global expansion efforts, which may cause short-term pressure on marketing efficiency for their B2C business, but still expect to drive overall B2C marketing leverage as a percentage of gross bookings  **[EXPE_3372496_15]** **[EXPE_3372496_9]** .

bcb4dca714918220834da88673815563759824d8815ff533dbb2ba24099f136f

2d2ff8ef598d3722a404f170de81f35c1289e408c60182af938183a0ae9c88e7

United States

All other countries

Total Revenue

3c66beac16b4f0dfa199f20d184272a7a9d8c74efe59ccfc90a3cc589453058f

- **Facebook, Instagram, and TikTok**: Developing search functionality that may become alternative research and booking resources for travelers, increasing competition  **[0001324424-24-000007_expe-20231231.htm:21]** .
- **Amazon and Alibaba**: Traditional consumer eCommerce platforms that may expand their local offerings into the travel market, creating additional competition  **[0001324424-24-000007_expe-20231231.htm:21]** .
- **Booking Holdings (Booking.com, Priceline.com, Agoda.com)**: Compete with Expedia in the OTA segment and provide alternative accommodations  **[0001324424-24-000007_expe-20231231.htm:19]** .
- **Airbnb**: Competes with Expedia's Vrbo in the alternative accommodations market and may expand into other travel services  **[0001324424-24-000007_expe-20231231.htm:19]** .
- **Trip.com**: Competes with Expedia in the OTA segment  **[0001324424-24-000007_expe-20231231.htm:19]** .
- **Google**: Competes by potentially disintermediating OTAs through its own offerings and capabilities, and by increasing the cost of traffic directed to Expedia's websites  **[0001324424-24-000007_expe-20231231.htm:19]** .

6ba51bae986668bed020639785839e4fabfc6b2f9773d30cccdc156c36f3f36d

**Quarterly guidance for Q4 2024:**
- **Gross Bookings Growth**: 6%-8%  **[EXPE_3406741_5]**  (raised from 3%-5%  **[EXPE_3397553_5]** )  
- **Revenue Growth**: about 1 point lower than gross bookings growth (i.e., ~5%-7%)  **[EXPE_3406741_5]**  (raised from 3%-5%  **[EXPE_3397553_5]** )  
- **EBITDA and EBIT Margins**: relatively in line with last year  **[EXPE_3406741_5]**  (raised from ~100 basis points of deleverage  **[EXPE_3397553_5]** )  

**Annual guidance for FY 2024:**
- **Gross Bookings Growth**: 5%  **[EXPE_3406741_5]**  (raised from 4%  **[EXPE_3397553_5]** )  
- **EBITDA and EBIT Margins**: slightly up vs last year  **[EXPE_3406741_5]**  (raised from in line with last year  **[EXPE_3397553_5]** )  
- **Revenue Growth**: 6%  **[EXPE_3406741_5]**  (no change from prior guidance  **[EXPE_3397553_5]** )  

b15bcda0c04e8d1ac3df5c4fbb3da4c9c3d217d42a74a757519e7540d8ef7751

| Name          | Position                                      | Start Date          | Short Bio                                                                                                                                                                                                 |
|---------------|-----------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Barry Diller  | Chairman and Senior Executive                 | August 9, 2005      | Barry Diller has been the Chairman of the Board and Senior Executive of Expedia Group since the company's spin-off from IAC. He has extensive management experience and is a significant stockholder  **[0001324424-24-000017_expe-20240428.htm:28]** **[0001324424-23-000018_expe-20230421.htm:32]** . |
| Peter Kern    | Vice Chairman and Chief Executive Officer     | 2020                | Peter Kern has been a director since 2005, Vice Chairman since 2018, and CEO since 2020. He has served on trivago's Supervisory Board and held leadership roles at Tribune Media and InterMedia Partners  **[0001324424-24-000017_expe-20240428.htm:28]** **[0001324424-23-000018_expe-20230421.htm:33]** . |
| Julie Whalen  | Chief Financial Officer                       | September 26, 2022  | Julie Whalen has been CFO since September 2022. She joined Expedia as a director in June 2019 and was previously EVP and CFO at Williams-Sonoma, Inc. She is a CPA with a B.S. in Accounting and a J.D.  **[0001324424-24-000017_expe-20240428.htm:33]** **[0001324424-23-000018_expe-20230421.htm:38]** **[0001324424-23-000018_expe-20230421.htm:13]** . |
| Robert Dzielak| Chief Legal Officer and Secretary             | March 2018          | Robert Dzielak has served as Chief Legal Officer and Secretary since March 2018. He joined Expedia in 2006 and has held various legal roles, including EVP and General Counsel  **[0001324424-24-000017_expe-20240428.htm:41]** .                          |
| Lance Soliday | Senior Vice President and Chief Accounting Officer | April 1, 2024       | Lance Soliday has been SVP and Chief Accounting Officer since April 2024. He previously held similar roles at Expedia and worked at Amazon and Microsoft. He is a CPA with a degree from Central Washington University  **[0001324424-24-000017_expe-20240428.htm:41]** . |
| Ariane Gorin  | Chief Executive Officer                       | May 13, 2024        | Ariane Gorin will become CEO on May 13, 2024. She has been with Expedia since 2013, holding leadership roles such as President of Expedia for Business. She previously worked at Microsoft  **[0001324424-24-000017_expe-20240428.htm:42]** **[0001324424-24-000017_expe-20240428.htm:31]** **[EXPE_3400279_0]** .          |

0bef41f3174b54c9d31c515afd8f66cb2b6d7ad3f13f27ce0658321b1de6990f

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | October 2023  **[0001324424-24-000052_expe-20240930.htm:42]** **[0001324424-24-000052_expe-20240930.htm:15]**  |
| End Date/Duration        | No fixed expiration  **[0001324424-24-000052_expe-20240930.htm:42]** **[0001324424-24-000052_expe-20240930.htm:15]**  |
| Total additional amount  | **$5 billion**  **[0001324424-24-000052_expe-20240930.htm:42]** **[0001324424-24-000052_expe-20240930.htm:15]**  |
| Remaining authorization  | **$3.4 billion**  **[0001324424-24-000052_expe-20240930.htm:42]** **[0001324424-24-000052_expe-20240930.htm:15]**  |
| Details                  | Provides flexibility to repurchase shares in the open market or through privately negotiated transactions. The timing, manner, price, and amount of any repurchases are at the discretion of the company.  **[0001324424-24-000007_expe-20231231.htm:80]** **[0001324424-23-000060_expe-20230930.htm:49]** **[0001324424-24-000038_expe-20240630.htm:13]** **[0001324424-24-000007_expe-20231231.htm:141]**  |

efa317d8f169a6f0f0a66a95753a108d622b2f2efba46b90adc62f81e1bc0fe1

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2004  **[0001324424-24-000007_expe-20231231.htm:97]**    | Present  | Current auditor   |

587d5c47d2755dbb8cba7acddfa3cc60e77b4009e94d63db613d4bfc5649f2ee

49f747d104c3cfd65569631d7f5f88989f6e00638c814153542b6600e5ce64f4

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $4,060 million (+3% YoY)  **[0001324424-23-000060_expe-20230930.htm:20]** **[0001324424-24-000052_expe-20240930.htm:34]**   
- B2B: $1,178 million (+18% YoY)  **[0001324424-23-000060_expe-20230930.htm:20]** **[0001324424-24-000052_expe-20240930.htm:34]**   
- trivago: $102 million (−11% YoY)  **[0001324424-23-000060_expe-20230930.htm:20]** **[0001324424-24-000052_expe-20240930.htm:34]**   
- Advertising, Media, and Other: $302 million (+11% YoY)  **[0001324424-23-000060_expe-20230930.htm:34]** **[0001324424-24-000052_expe-20240930.htm:34]**   
- Operating Income (EBIT): $762 million (+26% YoY)  **[0001324424-23-000060_expe-20230930.htm:1]** **[0001324424-24-000052_expe-20240930.htm:1]**   
- Net Income: **$684 million** vs. $31 million in prior year (+2,106% YoY)  **[0001324424-23-000060_expe-20230930.htm:1]** **[0001324424-24-000052_expe-20240930.htm:1]**   
- EPS (Diluted): $4.96 (+78% YoY)  **[0001324424-23-000060_expe-20230930.htm:1]** **[0001324424-24-000052_expe-20240930.htm:1]**   

7d6bf6acf85911478b70c491ceed70e410e1a8cdc64fc0d5d455200b24f65438

4559eebfbcffc9113ebad4c4cd774daf97c9d5ac3a135e464cda7c1bc371f7f7

Prepaid Merchant Bookings (USD millions)

Deferred Merchant Bookings (USD billions)

Deferred Loyalty Rewards (USD millions)

Deferred Revenue (USD millions)

e90f416b1c325370478be2ab63d78278e787118f14702da6c45700850873546e

| Year | Amount Due (in millions) | Debt Type              | Interest Rate (%) | % of Total Debt |
|----------|------------------------------|----------------------------|------------------------|---------------------|
| 2025     | $1,042 **[0001324424-24-000052_expe-20240930.htm:14]**               | 6.25% Senior Notes         | 6.25 **[0001324424-24-000052_expe-20240930.htm:14]**          | 16.6% = (1,042 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2026     | $748 **[0001324424-24-000052_expe-20240930.htm:14]**                 | 5.0% Senior Notes          | 5.0 **[0001324424-24-000052_expe-20240930.htm:14]**           | 11.9% = (748 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2026     | $995 **[0001324424-24-000052_expe-20240930.htm:14]**                 | 0% Convertible Senior Notes| 0.0 **[0001324424-24-000052_expe-20240930.htm:14]**           | 15.9% = (995 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2027     | $747 **[0001324424-24-000052_expe-20240930.htm:14]**                 | 4.625% Senior Notes        | 4.625 **[0001324424-24-000052_expe-20240930.htm:14]**         | 11.9% = (747 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2028     | $997 **[0001324424-24-000052_expe-20240930.htm:14]**                 | 3.8% Senior Notes          | 3.8 **[0001324424-24-000052_expe-20240930.htm:14]**           | 15.9% = (997 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2030     | $1,240 **[0001324424-24-000052_expe-20240930.htm:14]**               | 3.25% Senior Notes         | 3.25 **[0001324424-24-000052_expe-20240930.htm:14]**          | 19.8% = (1,240 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |
| 2031     | $494 **[0001324424-24-000052_expe-20240930.htm:14]**                 | 2.95% Senior Notes         | 2.95 **[0001324424-24-000052_expe-20240930.htm:14]**          | 7.9% = (494 / 6,263) * 100 **[0001324424-24-000052_expe-20240930.htm:14]** |

e74a33ac1a91090de857c1a59b917e62e0587cf28ea867d54a91974f0de1b9e7

- **Expedia has revised its full-year gross bookings growth guidance to approximately **4%**, down from previous expectations of mid- to high single digits, due to a more challenging macro environment and slowdown in travel demand.**  **[EXPE_3397553_5]** ,  **[EXPE_3397553_17]**
- **For the third quarter, Expedia expects gross bookings and revenue growth of only **3% to 5%**, with approximately **100 basis points** of EBITDA and EBIT margin deleverage versus last year.**  **[EXPE_3397553_5]** ,  **[EXPE_3397553_17]**
- **The company is experiencing softness in demand, particularly in the **U.S.**, with a decline in July stemming from customers trading down to lower-priced properties and continued pricing pressure in air and car segments.**  **[EXPE_3397553_4]** ,  **[EXPE_3397553_5]** ,  **[EXPE_3397553_13]** ,  **[EXPE_3397553_17]**

37db57a18d6862004c25cfc4680209b049883b8c5f9b60ed7764f7270b5867d5

- **Expedia Group lowered its full-year guidance to mid- to high single-digit top-line growth with margins relatively in line with last year, citing slower-than-expected recovery in their Vrbo business and B2C segment.**  **[EXPE_3382240_18]**
- **Vrbo is experiencing traffic issues and a slower-than-expected ramp-up post its technical migration, impacting overall bookings and revenue growth.**  **[EXPE_3382240_18]** ,  **[EXPE_3382240_11]** ,  **[EXPE_3382240_17]**
- **Hotels.com is not growing and is underperforming due to impacts from product migrations, changes in the loyalty program, and reduced investment in international markets.**  **[EXPE_3382240_9]**

ad58320e989885ff73bd266d841d299082df058d6dc31bad724261b875479d43

1. **Vrbo Growth Trajectory**  
   **Q:** What's the outlook for Vrbo's growth recovery?  
   **A:** While Vrbo showed **substantial acceleration** ending the quarter with **modest growth**, July trends make it hard to predict precisely. Despite near-term headwinds, we expect to drive Vrbo back to where it used to be in the long term.  **[EXPE_3397553_6]** 

2. **Guidance Amid Macro Softness**  
   **Q:** How does macro softness affect lodging outlook and guidance?  
   **A:** We've adjusted our full-year guidance to **6% revenue growth** and **4% bookings growth**, reflecting impacts on the lodging business, including **ADR weakening**. These factors are incorporated into our overall expectations.  **[EXPE_3397553_11]** 

3. **Margin Expansion Strategies**  
   **Q:** How will you drive margin expansion amid investments and ADR pressures?  
   **A:** We've achieved cost of sales efficiencies, with costs **down year-over-year**, and expect continued leverage through operational improvements and **AI** technology. We're also benefiting from overhead reductions due to prior cost actions. While investing in marketing for Vrbo and international markets, we anticipate margin leverage in the longer term through increased direct traffic and marketing efficiencies.  **[EXPE_3397553_8]** 

4. **B2B Growth and Outlook**  
   **Q:** What's causing B2B growth deceleration and how do you view its outlook?  
   **A:** Despite slight deceleration, B2B growth remains strong at over **20%**. As global demand normalizes, growth rates adjust accordingly. In July, macro factors impacted the U.S. segment, but we see significant opportunities ahead, and expect continued strong growth due to our leadership position and geographic diversity.  **[EXPE_3397553_10]** 

5. **Macro Softness Impact**  
   **Q:** Are you seeing softness in booking nights as well as ADRs?  
   **A:** Yes, we're seeing a reduction in nights booked, indicating a softening in travel demand that impacts transactions. It's a combination of factors, including shorter booking windows and lower ADRs.  **[EXPE_3397553_13]** 

6. **Marketing Spend and Margins**  
   **Q:** How are you managing B2C advertising expenses given the backdrop?  
   **A:** We're closely analyzing every marketing dollar, aiming to maintain **EBITDA margins in line with last year**. While investing in Vrbo and international markets, we're optimizing spend by evaluating returns across channels and focusing on efficiency in a potentially more volatile environment.  **[EXPE_3397553_13]** 

7. **Platform Transformation Payoff**  
   **Q:** What gives you confidence that the platform migration is paying off?  
   **A:** The replatforming has unlocked new capabilities, allowing us to run more tests and roll out features like **flexible date search** across all brands simultaneously. We've also implemented **One Key**, providing a unified customer view. These advancements wouldn't have been possible without the migration.  **[EXPE_3397553_9]** 

8. **Brand Expedia Growth**  
   **Q:** What drove the **20% growth** in room nights for Brand Expedia?  
   **A:** Brand Expedia has been a highlight, benefiting from being the least disrupted brand and receiving our latest innovations. We've built strong brand value with substantial marketing over time, leading to a great app install base, high repeat usage, and a strong member base. The value proposition of booking multi-item trips is resonating with travelers, driving growth.  **[EXPE_3397553_18]** 

9. **Pricing and Conversion**  
   **Q:** How did recent pricing reductions impact conversion?  
   **A:** Our pricing actions have positively driven conversion rates. We only implement these reductions when we see returns, and we'll continue leveraging this effective marketing strategy, especially in light of consumer trade-down trends.  **[EXPE_3397553_16]** 

10. **One Key Rollout Pause**  
    **Q:** Does pausing One Key rollout affect loyalty programs and supply partners?  
    **A:** Yes, the Hotels.com **10-for-1** loyalty program remains unchanged outside the U.S. and U.K. For supply partners, the impact is minimal, as they participate in member deals across different loyalty schemes seamlessly. One Key isn't rolled out in B2B, so there's no effect on that front.  **[EXPE_3397553_15]** 

11. **Booking Window Trends**  
    **Q:** How are booking windows evolving?  
    **A:** In our B2C hotel business, booking windows had been slightly expanding year-over-year, but in July, they **shortened a bit** for the first time in a while. For Vrbo, booking windows have been shortening consistently.  **[EXPE_3397553_10]** 

12. **Vrbo Marketing Strategy**  
    **Q:** How will softness affect Vrbo's Q4 marketing strategy?  
    **A:** We plan to continue investing in Vrbo's marketing, especially heading into Q1, which is crucial for the brand. Our guidance assumes this investment, and we believe it's important for long-term growth, even if softness persists.  **[EXPE_3397553_17]** 

13. **Advertising Growth Opportunities**  
    **Q:** How will you grow the advertising business in the next 1–2 years?  
    **A:** We're excited about expanding our travel media network, offering new advertising opportunities in the **upper funnel** and **post-booking moments**. Introducing tools like **self-serve options** and **video ads**, and expanding partnerships with hotels, airlines, and destination organizations will drive robust growth.  **[EXPE_3397553_14]** 

14. **Restructuring Progress**  
    **Q:** How much of the restructuring has been implemented?  
    **A:** The majority of the restructuring actions announced earlier this year have been completed. Actions in Q1 and Q2 are contributing to overhead favorability, with only a small portion remaining to be actioned.  **[EXPE_3397553_12]** 

15. **B2B vs. B2C Dynamics**  
    **Q:** Could B2B success cannibalize your B2C business?  
    **A:** While there's overlap in some geographies, consumers use multiple channels for travel. Our B2B business complements our offerings by powering technology and inventory for various partners, ultimately expanding our reach and driving value to supply partners. It also pushes our B2C brands to be more competitive.  **[EXPE_3397553_8]** 

b126b405b842a7bb5a1da707116ee4e25d77cf711f91ab4bce59faffbd81d8c3

1. **Vrbo Performance Outlook**  
   **Q:** Why is Vrbo still weak, and when will it recover?  
   **A:** The migration to the new platform caused expected conversion declines, but we've regained much of that, and **conversion is basically back to prior levels**. We pulled back on marketing during the migration but are now investing again. We expect Vrbo to grow throughout the year, with each quarter better than the last. The product improvements and increased marketing should drive growth.  **[EXPE_3372496_10]** **[EXPE_3372496_12]** **[EXPE_3372496_17]** 

2. **One Key Loyalty Program**  
   **Q:** Is One Key driving retention and cross-shopping?  
   **A:** Yes, we're satisfied with early indicators. **Cross-shopping is good**, and **repeat rates are improving**, especially among customers who hadn't earned rewards before. However, it's still early days, and benefits will build over time due to travel cycles. We're seeing members earn One Key Cash on Vrbo and beginning to redeem it across brands.  **[EXPE_3372496_10]** **[EXPE_3372496_13]** **[EXPE_3372496_17]** 

3. **CEO Transition**  
   **Q:** Why is Peter Kern stepping down now?  
   **A:** Peter came in to right the ship and set the company on a good path. The transformation became a bigger job than expected, but **significant progress has been made**, and the company is ready for new leadership. There's never a right time, but this is a good time to transition.  **[EXPE_3372496_11]** 

4. **Growth and Margin Guidance**  
   **Q:** Can you clarify growth and margin expectations for 2024?  
   **A:** We're planning to grow relatively in line with this year's growth rates, about **9.5%-10%** in GBV and **10%** on revenue, with margin expansion of approximately **75 basis points**. This applies to both GBV and revenue.  **[EXPE_3372496_15]** 

5. **Marketing Strategy**  
   **Q:** Are you pivoting brands towards One Key in marketing?  
   **A:** In the U.S., we're still advertising our core three brands—Expedia, Hotels.com, and Vrbo. We're exploring whether to advertise them as one or separately for optimal penetration. Internationally, we're focusing on maintaining one brand where possible. Our unified platform allows us to add services across brands, enhancing our marketing efficiency.  **[EXPE_3372496_16]** 

6. **Streamlining Expenses**  
   **Q:** What's the strategy behind streamlining expenses?  
   **A:** As we exit the transformation phase, we're deprecating legacy systems and redeploying resources, leading to **cost savings across the P&L**. This includes reductions in cost of sales and overhead as we move through the year.  **[EXPE_3372496_16]** 

7. **Alternative Accommodations Market**  
   **Q:** How is the health of the alternative accommodations industry?  
   **A:** The industry remains healthy post-pandemic, though urban areas have performed better, which isn't our focus. We're confident in our core markets and see opportunities to share inventory across brands. We haven't lost ground to competitors and are poised to accelerate with our improved product.  **[EXPE_3372496_14]** 

8. **Product Innovation and AI**  
   **Q:** How will product innovation and AI drive growth?  
   **A:** With One Key and replatforming behind us, we're excited about leveraging **machine learning and AI** across the product experience. This allows for **personalized experiences** and faster innovation. We're focused on enhancing customer experience without significant new investments.  **[EXPE_3372496_13]** 

9. **Impact of Replatforming**  
   **Q:** Have replatforming and One Key shown impact yet?  
   **A:** We're beginning to see positive indicators like increased cross-shopping and repeat rates. The Vrbo migration lets us accelerate improvements, benefiting from shared testing across brands. While early, these initiatives are building towards greater customer stickiness and revenue over time.  **[EXPE_3372496_17]** 

10. **Vrbo Business Disclosure**  
    **Q:** Can you provide details on Vrbo's contribution to bookings?  
    **A:** We haven't recently disclosed Vrbo's percentage of our business. Though at acquisition, numbers were provided, and you might extrapolate from growth rates. There's nothing additional to share on that front today.  **[EXPE_3372496_15]** 

d0191efb5ffca228ef96d8256148f9afd69f1baa7cbb45028436910134e0c0ec

- **Vrbo had a slow start to the year due to migration issues**, and despite efforts to improve product features and supply, it remains **underpenetrated in international markets** and is undergoing leadership changes with a new General Manager appointed.  **[EXPE_3406741_9]**
- The integration of **1 million units from Expedia to Vrbo** is still in early stages, requiring the company to figure out the **right UX and design**, which could pose challenges and uncertainty in returns from this move.  **[EXPE_3406741_12]**
- The effectiveness of the **One Key loyalty program** is still being assessed, with the company **interrogating the spend on loyalty** to ensure it delivers desired returns, indicating potential issues with its impact on traveler behavior.  **[EXPE_3406741_14]**

ed3e66204075dd086a9227f8e06ca4238513535269f167df09f043aa0e92fc6d

- **Conversion improvements and growth expected at Vrbo**: Expedia has completed the migration of **Vrbo** to the new platform  **[EXPE_3372496_10]** , with **conversion rates returning to previous levels and expected to improve further**.  **[EXPE_3372496_10]**  With the product improving rapidly and marketing efforts ramping up, **Vrbo is poised to drive growth in 2024**.  **[EXPE_3372496_10]**
- **Cost savings and margin expansion through streamlining expenses**: Expedia is focusing on **streamlining expenses** by deprecating redundant systems and finding **cost savings across the board**.  **[EXPE_3372496_16]**  This is expected to **drive operating efficiencies, reduce overhead expenses**, and **improve margins** in 2024.  **[EXPE_3372496_16]**
- **Leveraging AI and ML for personalized customer experience and efficiency**: With **One key launched** and **replatforming complete**, Expedia is poised to **drive efficient growth** by utilizing **AI and machine learning to personalize the customer experience**.  **[EXPE_3372496_13]**  This is expected to **enhance customer retention**, **increase direct traffic**, and **contribute to overall growth**.  **[EXPE_3372496_13]**

c764f86cc9f907714eddb2b856ca58772ac4fbf782e18277d0633fbfec68fcc4

- **Vrbo's performance has faced challenges**, including **conversion degradation during the migration** and **weakness in January**.  **[EXPE_3372496_10]**  The **recovery is taking time**, with a **lag in ramping back up marketing efforts**, potentially impacting short-term revenue.  **[EXPE_3372496_10]**
- **Competition in alternative accommodations is intensifying**, especially in **urban markets where Vrbo is not heavily weighted**, while competitors like **Airbnb and Booking.com are gaining share**.  **[EXPE_3372496_14]**  Expedia has not pivoted to urban vacation rentals, potentially **losing ground to competitors**.  **[EXPE_3372496_14]**
- **Leadership transition may introduce uncertainty**, as **CEO Peter Kern is stepping down in May**, acknowledging that the **transformation was bigger than expected** and he **had doubts a year ago**.  **[EXPE_3372496_11]**  The success of the new CEO in executing the company's strategy remains to be seen.

21e474d46ef2c00cf6be769fb1041aaa39dadf4ab21cdc3e0ff9a8f4baabe83d

- **Vrbo experienced substantial acceleration in Q2**, moving from low growth at the beginning of the year to **exiting the quarter with modest growth**, indicating recovery and future growth potential.  **[EXPE_3397553_6]**
- **Brand Expedia achieved 20% growth in booked room nights**, reflecting strong top-line growth and effective marketing strategies.  **[EXPE_3397553_19]**
- The **advertising business is "on fire," growing in the high 20%s**, with expectations for continued strong growth, contributing positively to overall revenue.  **[EXPE_3397553_6]**

dc2ef8415c71e10cf666d47e4b2103d62dc659dd131fcf4592567111a8401c70

- **Expedia's B2B segment continues to deliver strong double-digit growth, with big ambitions for future expansion, leveraging their leading position and great assets in the B2B space.**  **[EXPE_3382240_15]**
- **The One Key loyalty program is driving significant growth, with membership up 40% year-over-year, improving repeat rates, and increasing cross-brand engagement; 25% of people redeeming One Key cash on Vrbo are completely new to Vrbo.**  **[EXPE_3382240_10]**
- **Expedia is gaining market share in its core hotel business across North America and major focus markets, supported by strong product gains, conversion improvements, and effective investments, leading to growth in both domestic and international markets.**  **[EXPE_3382240_7]** **[EXPE_3382240_16]** **[EXPE_3382240_11]**

524f1430a06d717b433db4f8e1ba5ed5bc2f0e42150ee86a58dbff2fad9da13f

- **Strong Growth in B2B Business:** Expedia's B2B segment reported a **19% increase** in bookings this quarter, demonstrating robust performance across various partner segments and regions. The company believes this segment will continue to grow at healthy double-digit rates, tapping into a massive market opportunity with corporate travel agencies, offline and online travel agencies, and financial institutions.  **[EXPE_3406741_14]**
- **Positive Momentum in Vrbo and Alternative Accommodations:** After overcoming migration challenges, **Vrbo has returned to growth**, driven by product improvements, supply expansion—including adding **1 million units** from Expedia to Vrbo—and effective marketing campaigns. The addition of urban inventory and focus on underpenetrated international markets position Vrbo to capture more market share in the growing alternative accommodations sector.  **[EXPE_3406741_12]** ,  **[EXPE_3406741_9]**
- **Advancements in Loyalty Program and Cross-Brand Synergies:** The **One Key** loyalty program is yielding positive results, with tiered members (silver, gold, platinum) representing **30% of travelers but 50% of room nights**. The program is effectively driving cross-brand engagement, with **30% of travelers redeeming One Key cash on Vrbo being new to the platform**. These advancements enhance customer loyalty and can lead to increased direct bookings and marketing efficiencies.  **[EXPE_3406741_14]**

5e1d76d1f93b63564d1bc40ab9a700e78ec75014ea92f364a11928ec9483a1ef

1. **Marketing Leverage and Margins**  
   **Q:** When can you deliver aggregate marketing leverage?  
   **A:** We expect to see marketing leverage going forward as Vrbo and international markets return to desired levels. Excluding investments in Vrbo and international markets, we have seen leverage in our B2C business. As these businesses improve, we anticipate more marketing efficiencies.  **[EXPE_3406741_7]** 

2. **Vrbo Growth Acceleration**  
   **Q:** What is required to accelerate Vrbo's growth?  
   **A:** Vrbo's growth can be accelerated by continuing to improve the product, expanding supply, and effective marketing. This year, we've added new features, made the app faster, and launched a successful marketing campaign with Nick Saban that drove conversions. We're focusing on underpenetrated urban destinations and international markets. A new General Manager is developing long-term growth plans to capitalize on these opportunities.  **[EXPE_3406741_9]** 

3. **B2B Growth and Outlook**  
   **Q:** What drives strong B2B growth and how sustainable is it?  
   **A:** Our B2B business grew by **19%** this quarter, only 1 point down from last quarter, driven by a massive market including corporate travel agencies, offline and online travel agencies, and financial institutions with loyalty programs. While recent elevated growth was partly due to Asia's recovery, we believe the business will continue to grow at healthy double-digit rates, even if not at the elevated levels we've seen.  **[EXPE_3406741_14]** 

4. **Selling and Marketing Efficiencies**  
   **Q:** Can you improve selling and marketing efficiencies versus competitors?  
   **A:** Yes, we see opportunities to improve efficiencies. Excluding investments in Vrbo and international markets, we are already seeing efficiencies, particularly in Brand Expedia. We're focused on optimizing our products and supply to deliver value to travelers, encouraging repeat and direct bookings, which will drive further marketing efficiencies. We're laser-focused on this going forward.  **[EXPE_3406741_18]** 

5. **One Key Loyalty Program Impact**  
   **Q:** How is the One Key program performing and how can it improve?  
   **A:** Since launching in summer 2023, we've been pleased with One Key's results. Tiered member deals attract **30%** of travelers but account for **50%** of room nights. Cross-brand redemption is strong, with **30%** of travelers redeeming One Key Cash on Vrbo being new to Vrbo. We're tuning the value proposition by brand and geography, and the technology allows us to adjust the program to optimize loyalty spend.  **[EXPE_3406741_14]** 

6. **October Trends and Hurricane Impact**  
   **Q:** How did hurricanes affect October trends?  
   **A:** We saw an impact from Hurricane Milton in October, but it was less severe than initially expected. Excluding the hurricane and other events like elections, the underlying health of the business is strong as we enter the fourth quarter.  **[EXPE_3406741_17]** 

7. **Integration of Vrbo Supply with Expedia**  
   **Q:** Why did you add 1 million rooms from Expedia to Vrbo?  
   **A:** We moved about **1 million** units from Expedia to Vrbo to expand into more urban and shorter-stay markets. This supply differs from our traditional inventory, so we're refining the user experience. This move allows customers to find whole homes and apartments in a broader range of destinations, supporting our growth strategy.  **[EXPE_3406741_12]** 

8. **International Market Share Regain**  
   **Q:** How are you regaining share in international markets?  
   **A:** We are being surgical, analyzing each market to determine which of our brands has strong recognition, and implementing full-funnel marketing plans to regain share. This focused approach allows us to be effective where it counts.  **[EXPE_3406741_17]** 

9. **Alternative Accommodation Regulations**  
   **Q:** Are regulatory updates in places like California affecting your alternative accommodations?  
   **A:** We work closely with local governments to stay compliant with regulations. While acknowledging a balance between local economic contributions and regulations, we believe there's still a significant market for alternative accommodations. Recent regulatory changes haven't impacted our growth potential.  **[EXPE_3406741_15]** 

10. **Hotels.com Performance**  
    **Q:** How is Hotels.com performing post-loyalty program changes?  
    **A:** Hotels.com performance in Q3 was stable but hasn't returned to growth. The brand was significantly impacted by our migration, loyalty program changes, and international pullback. As we re-enter international markets, Hotels.com is benefiting. A new General Manager is bringing fresh perspective, and we're excited about future developments.  **[EXPE_3406741_16]** 

11. **CEO's Positives and Challenges**  
    **Q:** What surprises and challenges have you found in your new role?  
    **A:** Positively, I've seen immense passion and brand love for Expedia, Hotels.com, and Vrbo. A challenge has been connecting our technological advancements directly to brand value propositions, especially for Hotels.com and Vrbo. However, the organization is responding quickly, and we're seeing acceleration in the consumer business, giving me confidence in the future.  **[EXPE_3406741_11]** 

694ffdd638857611feb8b6392522aa6051e7d7caed4024297a89519ba33d70b6

1. **Vrbo Performance and Recovery Plan**  
   **Q:** How will you address Vrbo's performance issues?  
   **A:** Vrbo faced challenges due to a spend down and product migration that impacted traffic and conversion. We are now rebuilding awareness and investing in brand to get it back on a growth trajectory. The product is converting well and improving quickly, benefiting from our single tech stack. We see no flaws in the business, just a need to reinvest to drive improvement. We are confident in our progress and focused on regaining momentum.  **[EXPE_3382240_5]** **[EXPE_3382240_10]** **[EXPE_3382240_16]** 

2. **Guidance and Share Gains**  
   **Q:** Has your outlook for share gains changed due to a cautious full-year view?  
   **A:** Our guidance for share gains remains, except for Vrbo, which has impacted overall lodging share. In our core hotel business, we are seeing strong share gains across North America and major markets. We are making continuous product improvements, leading to better conversion and more efficient marketing. We feel good about our progress in the non-Vrbo business.  **[EXPE_3382240_6]** 

3. **Pricing Investment Strategy**  
   **Q:** Why are you pivoting towards price investment over marketing?  
   **A:** We view marketing, pricing, and loyalty as a unified investment to drive consumer behavior. We saw an opportunity to achieve better returns by investing in pricing, modifying prices by taking value out of our margins to drive more velocity and customer acquisition. This strategic rebalance allows us to invest where we see the best returns.  **[EXPE_3382240_7]** 

4. **Hotels.com Performance**  
   **Q:** Can you expand on Hotels.com's underperformance and plans for improvement?  
   **A:** Hotels.com is not where we want it to be due to impacts from product migration, changes in the loyalty program, and reduced international focus. The migration affected performance, and the shift to One Key resulted in less earn for Hotels.com users. As we reinvest in international markets, where Hotels.com is a lead brand, we expect to see growth. We are also seeing great conversion gains in lodging, which benefits Hotels.com.  **[EXPE_3382240_8]** 

5. **One Key Loyalty Program Impact**  
   **Q:** How is One Key performing, and does Vrbo's and Hotels.com's performance affect its rollout?  
   **A:** One Key is performing well, with new membership up **40% year-over-year** and good repeat rates. We are seeing cross-shopping benefits, with **25%** of Vrbo customers who redeemed One Key cash being new to Vrbo. We plan to roll it out internationally later this year, and we believe it will help attract customers across our brands.  **[EXPE_3382240_9]** **[EXPE_3382240_10]** 

6. **International Expansion and P&L Impact**  
   **Q:** When will international investments contribute to the P&L?  
   **A:** We are seeing good returns in international markets where we've invested, such as Brazil and Scandinavia, with double-digit growth on our brands. It's contributing, but North America is so large it's hard to see in the total numbers yet. We're investing now to drive long-term growth for years to come, and as these markets succeed, we'll continue to invest where we have the right to win.  **[EXPE_3382240_10]** **[EXPE_3382240_11]** 

7. **Cost Reduction and Margin Outlook**  
   **Q:** What are the mechanics around headcount reduction and margin expectations?  
   **A:** We are undergoing cost reduction initiatives, including a recent headcount reduction impacting about **1,500** associates. The savings impact cost of sales, overhead, and capitalized labor. While some savings will be reinvested into marketing, we expect substantial annualized savings. Our margins are expected to be similar to last year's, as we balance investments in Vrbo and international markets with cost efficiencies.  **[EXPE_3382240_13]** **[EXPE_3382240_15]** **[EXPE_3382240_17]** 

8. **AI and Machine Learning Initiatives**  
   **Q:** What are your learnings from Gen AI, and how will it change user search?  
   **A:** We have been experimenting extensively with Gen AI across the company, both user-facing and internally. While still early, we've learned a lot and plan to introduce exciting new features soon. AI and machine learning are driving wins across our products, enabling personalized experiences for travelers, improved partner tools, and efficiency gains in customer support and development. We expect AI to touch every part of our organization and enhance how travelers search and book.  **[EXPE_3382240_12]** **[EXPE_3382240_8]** 

9. **B2B Growth Prospects**  
   **Q:** How do you view B2B growth over the medium to long term?  
   **A:** While we don't provide specific projections, we continue to have big ambitions for our B2B business. It's well-balanced geographically and across various partner types, including airlines, banks, and travel agencies. With investments in technology, supply, and partnerships, we have strong assets to remain leaders in B2B.  **[EXPE_3382240_11]** **[EXPE_3382240_14]** 

10. **Bundling and Cross-sell Enhancements**  
    **Q:** Has AI and mobile improved your ability to cross-sell and bundle products?  
    **A:** Yes, machine learning allows us to better understand the next best offer for travelers, enhancing cross-sell and attach rates. Our package path, especially dynamic bundling of air tickets with hotels, is a unique value proposition where we're seeing strong results. We have significant ambitions around cross-selling and believe AI will further improve these capabilities.  **[EXPE_3382240_13]** 

11. **Direct Traffic and App Usage**  
    **Q:** Can you provide commentary on direct traffic trends?  
    **A:** Approximately **two-thirds** of our business comes from direct traffic. We've seen strong improvements in app usage, with a **600 basis points** increase in the proportion of business through the app. We're focused on driving more direct traffic, and initiatives like One Key are expected to bolster this over time.  **[EXPE_3382240_11]** 

12. **Impact of Google Regulatory Changes**  
    **Q:** Are you seeing benefits from Google's regulatory changes in Europe?  
    **A:** No significant impact has been observed. Google continues to operate much as before, pushing SEO traffic down and seeking new ways to monetize. We have not noticed any material changes benefiting our business from these regulatory actions.  **[EXPE_3382240_11]** 

13. **New CEO's Priorities**  
    **Q:** What are your priorities over the next quarter or two?  
    **A:** As the new CEO, I'll be focusing on helping teams get back to the basics of traffic and conversion, delivering the acceleration implied in our guidance. I'll be listening and learning, ensuring we execute effectively in the short term while considering any necessary adjustments to achieve our long-term growth objectives.  **[EXPE_3382240_17]** 

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Expedia Group Inc (EXPE)

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