Expedia, announcing its financial result for Q4 2024, has revealed how it is leveraging AI to enhance customer experience, optimize operations, and drive growth across its consumer and B2B segments.
Expedia had a strong 2024, demonstrating consistent growth across its core businesses and improving customer experiences through technology and AI-driven innovations.
Key Achievements
Consumer business bookings grew 9 percent in Q4, marking the third consecutive quarter of acceleration. B2B bookings surged by 24 percent, and advertising revenue increased by 25 percent.
Room nights booked grew across regions — high single digits in the U.S., low double digits in Europe, and high teens elsewhere. Lodging bookings increased by 12 percent, with hotels growing 14 percent and Vrbo gaining momentum.
Active membership in the loyalty program grew by 7 percent, with a 300-basis-point increase in the 12-month member repeat rate. Nearly 50 percent of room nights came from high-tier members (silver, gold, platinum).
Expedia achieved $111 billion in gross bookings (+7 percent) and $14 billion in revenue (+7 percent). EBITDA margin expanded to 21.4 percent, supported by disciplined cost management.
Expedia continues to offer exclusive deals, enhanced member rates, and unique package savings tailored to travelers’ needs.
AI-Driven Innovation
Expedia CEO Ariane Gorin says AI is improving discovery, shopping, and post-booking experiences, driving loyalty and efficiency. AI-powered merchandising and marketing optimization further enhance customer engagement.
AI plays a central role in delivering personalized and rewarding experiences, from offering exclusive deals and tailored recommendations to enhancing self-service options and customer support. AI-powered insights help Expedia provide targeted offers and improve merchandising, which has contributed to the company’s strong financial performance. AI also helps optimize Expedia’s loyalty program, increasing repeat customer rates and engagement.
AI-driven features enhance the shopping and post-booking experience, making travel planning more seamless. New self-service options and virtual agents provide better support.
The company is using AI to refine its international expansion strategy by identifying high-potential markets and optimizing marketing spend. AI-driven analytics enable Expedia to enhance its advertising business, offering new ad formats and improved targeting that drive higher engagement and revenue growth. In its B2B segment, AI enhances inventory management and pricing strategies, allowing Expedia’s partners to maximize revenue.
Operational efficiency is another key area where AI is making an impact. Expedia is leveraging AI to improve customer service, streamline workflows, and increase productivity across its teams.
AI-driven automation helps reduce costs while enabling employees to focus on high-value tasks. Additionally, Expedia is exploring AI-native travel solutions and partnerships, ensuring the company stays at the forefront of industry innovation.
Baburajan Kizhakedath
