Expedia Group Raises Full-Year Guidance on a Q2 Where B2B Grew Nearly Three Times Faster Than Consumer

Expedia Group reported second-quarter results on August 5 that exceeded the top end of its guidance and prompted a raise to full-year gross bookings, revenue and margin targets. The split underneath the headline is the part worth reading: the B2B business grew gross bookings 21% while the consumer brands grew 8%, and B2B is now doing most of the work in a quarter where booked air tickets actually declined.

The quarter

Lodging gross bookings grew 11% to $24.6 billion. Average daily rate booked rose 5% to $220.60. Booked air tickets fell 5% to 14.2 million.

The 166% jump in GAAP net income is not a trading result: it includes a $280 million gain on minority equity investments, which Expedia strips out of adjusted net income. Adjusted net income grew 29%.

"We exceeded the high end of our guidance in the quarter, driven by growth in our consumer brands, sustained B2B momentum, and disciplined execution," said CEO Ariane Gorin, who also credited "leveraging AI as a force multiplier to innovate faster and operate more efficiently."

The segment split

This is where the quarter gets interesting for supply partners:

• B2B gross bookings grew 21% to $10.7 billion; B2C grew 8% to $23.2 billion.
• B2B revenue grew 23% to $1.49 billion; B2C revenue grew 8% to $2.68 billion.
• trivago and other revenue grew 48% to $145 million.

But growth is costing something. B2B adjusted EBITDA grew only 12% to $369 million, and B2B margin contracted 258 basis points to 24.8%. B2C went the other way: adjusted EBITDA up 22% to $889 million with 380 basis points of margin expansion to 33.2%. Direct selling and marketing in B2B rose 22% to $915 million, against 1% growth in B2C.

In other words, the fastest-growing part of Expedia Group is also the part where incremental volume is arriving at a lower margin. For hoteliers, that segment is the one placing rates into airlines, offline agents, retailers and financial-institution portals — a distribution surface that keeps widening even as its economics tighten.

Raised guidance

Q3 2026: gross bookings of $32.2–$32.8 billion (+5–7%), revenue of $4.65–$4.75 billion (+5–8%), adjusted EBITDA of $1.51–$1.56 billion.

Full-year 2026, raised on every line:

• Gross bookings: $129.5–$130.8 billion (+8–9%), up from $127–$129 billion (+6–8%).
• Revenue: $16.05–$16.22 billion (+9–10%), up from $15.6–$16.0 billion (+6–9%).
• Adjusted EBITDA margin expansion: +1.5–1.75 points, up from +1–1.25 points.

Expedia repurchased approximately 880,000 shares for $200 million in the quarter and declared a quarterly dividend of $0.48 per share on August 5, payable September 17 to holders of record on August 27.