Expedia Group

“We have incorporated third-party AI technology in certain of our products, services and business operations.”

“Technology and content expense includes product development and content expense, as well as information technology costs to support our infrastructure, back-office applications and overall monitoring and security of our networks, and is principally comprised of personnel and overhead, including stock-based compensation, as well as other costs including cloud expense and licensing and maintenance expense.”

“As we scale these capabilities, we're managing token costs thoughtfully while giving broad access to our teams.”

“It's not just that measurement that allows us to better understand incrementality and returns. The team is also doing some really fantastic work around using technology to be more effective. They're developing these agentic systems to create personalized ads at scale, both using our technology and using third-party technology.”

“We also collaborate with leading AI platforms to enhance our capabilities and accelerate innovation.”

“Technology and content expense remained relatively consistent during the three and six months ended June 30, 2026, compared to the same periods in 2025 as higher license and maintenance costs and cloud costs were mostly offset by lower personnel costs in connection with previously announced cost saving initiatives.”

“Technology and content expense decreased $44 million for 2024 compared to 2023 primarily due to lower personnel costs in connection with previously announced cost saving initiatives, partially offset by higher stock-based compensation.”

“During 2020, Expedia Group unified its technology, product, data engineering, and data science teams to build services and capabilities that can be leveraged across our business units to provide value-add services to our travel suppliers and serve our end customers.”

“To that end, in February, we announced cost actions that will impact approximately 1,500 employees through this year.”

“As of December 31, 2024, approximately one half of our people work in technology roles.”

“We have acquired, invested in, divested or entered into significant commercial arrangements with a number of businesses in the past, and our future success may depend, in part, on such transactions, any of which could be material to our financial condition and results of operations.”

“Last week, we announced the acquisition of Layla, an AI conversational planning app, allowing us to capture new types of travelers while bringing learnings into our core business.”

“We provide 24-hour-a-day, seven-day-a-week traveler sales and support by our virtual agent platform, telephone, chat, or e-mail. For purposes of operational flexibility, we use a combination of outsourced and in-house contact centers.”

“In addition, we have continued to invest in our customer service platform technology, which leverages technology and artificial intelligence to provide our customers with online customer service options and self-service capabilities.”

“Cost of revenue primarily consists of direct costs to support our customer operations, including our customer support and telesales as well as fees to air ticket fulfillment vendors”

“We've done a lot of experimentation in GenAI, obviously, user-facing as well as within the company from an efficiency standpoint, from customer service, all kinds of places.”

“We provide 24-hour-a-day, seven-day-a-week traveler sales and support by our virtual agent platform, telephone, chat, or e-mail. For purposes of operational flexibility, we use a combination of outsourced and in-house contact centers.”

“We invested significantly in our contact center technologies, with the goal of improving customer experience and increasing the efficiency of our contact center agents and we expect to continue reaping the benefits of these investments going forward.”

“Cost of revenue primarily consists of direct costs to support our customer operations, including our customer support and telesales as well as fees to air ticket fulfillment vendors”

“You know, there's work, as Peter said, with our customer support organization, how do they use it to be more effective? Our development teams, even our commercial teams are looking at, you know, are there pilots for how we can use those to be more effective as well.”

“For example, we now manage our marketing investments holistically across the entire brand portfolio, allowing us to optimize our spend to achieve better returns, and run on a unified marketing technology platform, improving our performance by scaling our marketing capabilities.”

“Selling and marketing - direct costs primarily include traffic generation costs from search engines and internet portals, television and print spending, private label and affiliate program commissions, public relations and other costs.”

“More than 40% of Vrbo bookings last quarter included partner-funded offers, and our May sale was the first campaign to exceed $1 billion in bookings for participating properties.”

“In our consumer business, our sharper measurement and targeting capabilities are allowing us to invest in the highest return opportunities and leverage our marketing spend. We're investing in newer surfaces like AI and social platforms, where more consumers are starting their trip planning.”

“We expanded margins by nearly two points in the quarter, driven by tight expense management and the consumer marketing leverage I just mentioned.”

“Foreign exchange was a tailwind for the business, contributing nearly half a point to bookings growth four points to revenue growth.”

“The margin expansion was driven by a combination of cost efficiencies, consumer marketing leverage, the flow-through of higher volume.”

“We had the substantial reductions in marketing spend and driving out inefficient spend, but also redirecting spend to more productive channels.”

“We grew our bookings 8% while leveraging marketing spend, which was only up 1%.”

“It's not just that measurement that allows us to better understand incrementality and returns. The team is also doing some really fantastic work around using technology to be more effective. They're developing these agentic systems to create personalized ads at scale, both using our technology and using third-party technology.”

“B2C leverage driven by marketing discipline and improved returns across channels”

“Selling and marketing - direct increased $199 million and $298 million during the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily driven by an increase in B2B partner commissions to support revenue growth. The increase in the year-to-date period was partially offset by a decrease in marketing spend at B2C, which had significant marketing leverage.”

“We also license content from suppliers for our creative campaigns. As we continue to build our creative production work and introduce new services that incorporate new technologies, content and brands, we may be required to license additional technology, content, and brands.”

“Our marketing channels primarily include brand advertising through online and offline channels, loyalty programs, mobile apps, search engine marketing and optimization as well as metasearch, social media, direct and/or personalized traveler communications on our websites as well as through direct e-mail communication with our travelers.”

“It's not just that measurement that allows us to better understand incrementality and returns. The team is also doing some really fantastic work around using technology to be more effective. They're developing these agentic systems to create personalized ads at scale, both using our technology and using third-party technology.”

“You know, there's work, as Peter said, with our customer support organization, how do they use it to be more effective? Our development teams, even our commercial teams are looking at, you know, are there pilots for how we can use those to be more effective as well.”

“We've done a lot of experimentation in GenAI, obviously, user-facing as well as within the company from an efficiency standpoint, from customer service, all kinds of places.”

“Technology and content expense decreased $44 million for 2024 compared to 2023 primarily due to lower personnel costs in connection with previously announced cost saving initiatives, partially offset by higher stock-based compensation.”

“To that end, in February, we announced cost actions that will impact approximately 1,500 employees through this year.”

“As of December 31, 2024, approximately one half of our people work in technology roles.”

“Technology and content expense includes product development and content expense, as well as information technology costs to support our infrastructure, back-office applications and overall monitoring and security of our networks, and is principally comprised of personnel and overhead, including stock-based compensation, as well as other costs including cloud expense and licensing and maintenance expense.”

“We expanded margins by nearly two points in the quarter, driven by tight expense management and the consumer marketing leverage I just mentioned.”

“Importantly, we're continuing to deploy AI to innovate faster and operate more effectively. On Vrbo, we launched an agentic voice solution to support partner inquiries previously handled by human agents. Early results are promising, with faster resolution and lower contact propensity.”

“More broadly, our agentic technology stack is allowing us to design and ship products faster, ultimately unlocking new capabilities for both travelers and partners.”

“As we scale these capabilities, we're managing token costs thoughtfully while giving broad access to our teams.”

“Foreign exchange was a tailwind for the business, contributing nearly half a point to bookings growth four points to revenue growth.”

“The margin expansion was driven by a combination of cost efficiencies, consumer marketing leverage, the flow-through of higher volume.”

“In addition, I would say, just as an aside, is all the work we're doing in using AI in our technology teams in order to increase our cycle time is allowing us to innovate a lot faster.”

“We've also continued to make incremental progress on the rest of the cost structure, and I'd just point to the fact that overheads were flat year-over-year in the most recent quarter, even as revenue rose 14%.”

“We continued to strengthen our marketplace through more personalized consumer product experiences and expanded supply across our business, while leveraging AI as a force multiplier to innovate faster and operate more efficiently.”

“Leverage benefited from ongoing savings generated by a series of cost reductions”

“We continue to integrate artificial intelligence across our platform, including in traveler-facing experiences, customer service operations and internal processes, with the goal of improving conversion, personalization and operational efficiency.”

“Technology and content expense remained relatively consistent during the three and six months ended June 30, 2026, compared to the same periods in 2025 as higher license and maintenance costs and cloud costs were mostly offset by lower personnel costs in connection with previously announced cost saving initiatives.”

“We have continued to recalibrate resources and expand the restructure efforts that began in 2024 due to the significant completion of the Company’s organizational and technological transformation.”

“other costs, primarily including data center and cloud costs to support our websites, supplier operations, destination supply, certain transactional level taxes as well as related personnel and overhead costs”

“Our strategic account managers and local hotel market managers work directly with travel suppliers to optimize the exposure of their travel products and brands through our points of sale”

“Importantly, we're continuing to deploy AI to innovate faster and operate more effectively. On Vrbo, we launched an agentic voice solution to support partner inquiries previously handled by human agents. Early results are promising, with faster resolution and lower contact propensity.”

“Our strategic account managers and local hotel market managers work directly with travel suppliers to optimize the exposure of their travel products and brands through our points of sale”

“For example, when onboarding suppliers to our websites, we may fail to identify falsified or stolen supplier credentials, which may result in fraudulent bookings or unauthorized access to personal or confidential information of users of our websites and mobile applications.”

“Vrbo's alternative accommodation listing services offers our supply partners a set of tools to help them manage an availability calendar, respond to customer inquiries, edit the content of a property listing, as well as provide various other services to manage reservations or drive incremental sales volume.”

“How do we help partners use GenAI to better, you know, show their inventory in our apps or in our brands? How do we allow them to use GenAI to improve their advertising with us?”

“Technology and content expense includes product development and content expense, as well as information technology costs to support our infrastructure, back-office applications and overall monitoring and security of our networks, and is principally comprised of personnel and overhead, including stock-based compensation, as well as other costs including cloud expense and licensing and maintenance expense.”

“There's also a lot of impact, as we've talked about before, from old-fashioned machine learning, driving all kinds of wins across the product, and as I mentioned, much more at scale because they can be deployed much more readily across all brands and across different lines of business.”

“It is true that with machine learning, you can get a lot smarter in understanding what is the next best thing to propose to a traveler. What are they most likely to attach, given what we know about them, given what we know about what they're doing in that trip plan?”

“For example, a recommendation algorithm gets smarter faster because of our scale, but it has to be trained on the differences between a traveler shopping on Vrbo compared to one on Expedia.”

“With greatly improved product driven by the latest in machine learning and artificial intelligence capabilities, we believe we will continue to drive greater retention, repeat and direct business.”

“Our AI-powered personalization and recommendations keep getting smarter across all three of our consumer brands. On Expedia, our fastest-growing brand, this translated into another quarter of record attach rates.”

“More than 40% of Vrbo bookings last quarter included partner-funded offers, and our May sale was the first campaign to exceed $1 billion in bookings for participating properties.”

“Foreign exchange was a tailwind for the business, contributing nearly half a point to bookings growth four points to revenue growth.”

“In that first bucket, it's using AI for better recommendations, for better ranking, for personalizing the UX and the content. There, we are seeing immediate impacts, and it's not only just improving conversion, but you can imagine, as we're getting traffic, whether it's direct traffic or paid traffic, that is improving.”

“Actually, part of what's behind the record attach rates is the personalization we're able to drive by understanding what is the next best thing to recommend to a traveler.”

“In addition, they've done a great job really optimizing the UX and the design, figuring out where is it that we put the attach messaging, where is it in the app, where is it in the post-sale communications. It's really a combination of all of the above.”

“One aspect of that is that we had the digestion of Tiqets and that acquisition in Q2, that would have weighed a little bit on the cost that you're seeing.”

“We continued to strengthen our marketplace through more personalized consumer product experiences and expanded supply across our business, while leveraging AI as a force multiplier to innovate faster and operate more efficiently.”

“We continue to integrate artificial intelligence across our platform, including in traveler-facing experiences, customer service operations and internal processes, with the goal of improving conversion, personalization and operational efficiency.”

“All other revenue, which includes insurance, car, cruise and activities, increased 23% and 20% for the three and six months ended June 30, 2026, compared to the same periods in 2025 primarily due to higher insurance and activities revenue.”

“We've done a lot of experimentation in GenAI, obviously, user-facing as well as within the company from an efficiency standpoint, from customer service, all kinds of places.”

“But basically, you know, it is early days as far as the search approach goes. It's still pretty modest in terms of how many people use it, certainly in terms of its impact on conversion or anything else.”

“AI is unlocking new ways to make these experiences simpler and more personalized. Last quarter, we launched new and updated conversational experiences, introducing natural language search on the Vrbo homepage and updating Property Expert and AI Compare in the hotel shopping flow.”

“The second is, what are we doing in our product that's not necessarily delivering conversion right now, but we know is helping us better understand travelers and is going to have compounding benefits over time?”

“Also in the product, we're introducing these natural language experiences like Vrbo natural language search on the homepage, or these agents like Property Expert or AI Compare. Those are not driving conversion right now, but what we're finding is that you get over 60% more information about traveler intent, and that allows us to deepen the relationships with the traveler.”

“We continue to integrate artificial intelligence across our platform, including in traveler-facing experiences, customer service operations and internal processes, with the goal of improving conversion, personalization and operational efficiency.”

“How do we help partners use GenAI to better, you know, show their inventory in our apps or in our brands? How do we allow them to use GenAI to improve their advertising with us?”

“Marketing tools assist hotels and alternative accommodations in tailoring demand to their requirements and our revenue management product provides pricing insights.”

“In 2024, we generated $639 million of advertising revenue from Expedia Group Media Solutions, a 32% increase from 2023.”

“AEO and social are two of our fastest-growing channels. While agentic traffic remains small, it's a promising channel with high purchase consideration.”

“We're deepening our partnerships with leading AI platforms. During the quarter, we're an early adopter of ChatGPT's latest ad product and expanded our work across Google's newer AI services.”

“I also believe there's a big growth opportunity in getting access to travelers who are starting outside of our brands in these AI experiences. As a reminder, two-thirds of our bookings in our consumer brands come direct.”

“Of the third that is coming through paid channels, obviously AI experiences, whether they are with ChatGPT or Claude or Google's new experiences, are new opportunities for our brands to show up there. It is early days.”

“We are testing and participating everywhere that things are evolving, and I see that over time as opportunities to bring more travelers into our business.”

“When I think about organic traffic, and I'm going to bucket together SEO and AEO, for us, organic search traffic is stable to slightly up. Now, as I mentioned in my prepared remarks, AEO is one of our fastest-growing channels, and SEO has remained a bit soft, but it's stabilized over the last few quarters, and I think it's due to the great work that our team has done.”

“A number of quarters ago, we organized a small team to look at organic across the board, AEO and SEO, and they've increased testing velocity, both technical and content. As I said, they've been doing more tests. They've been using AI across the board in order to improve our performance in that channel.”

“Look, AEO is still a small channel. As I said, it's one of our fastest-growing channels.”

“Are there opportunities with these connectors or micro apps, for example, in Claude and ChatGPT? It's fascinating to see there are some cases in which we can control a bit more what the interface is, where our brand shows up, and others where we can't.”

“I think it's too early to declare anyone's getting a lot more versus less.”

“In our consumer business, our sharper measurement and targeting capabilities are allowing us to invest in the highest return opportunities and leverage our marketing spend. We're investing in newer surfaces like AI and social platforms, where more consumers are starting their trip planning.”

“We're deepening our partnerships with leading AI platforms. During the quarter, we're an early adopter of ChatGPT's latest ad product and expanded our work across Google's newer AI services.”

“Of the third that is coming through paid channels, obviously AI experiences, whether they are with ChatGPT or Claude or Google's new experiences, are new opportunities for our brands to show up there. It is early days.”

“We are testing and participating everywhere that things are evolving, and I see that over time as opportunities to bring more travelers into our business.”

“In addition, technological developments in generative artificial intelligence ("AI") tools may be increasingly used to create competing offerings such as AI powered digital assistants, which may further increase competition.”

“Search engines may also continue to expand their voice and AI capabilities. To the extent these actions have a negative effect on our search traffic or the cost of acquiring such traffic, our business and financial performance could be adversely affected.”

“Are there opportunities with these connectors or micro apps, for example, in Claude and ChatGPT? It's fascinating to see there are some cases in which we can control a bit more what the interface is, where our brand shows up, and others where we can't.”

“intense competition from online travel agencies, suppliers, search engines, B2B businesses offering competing travel technology solutions and services, and emerging AI-powered platforms;”

“Technological developments in generative artificial intelligence (“AI”) tools are increasingly being used to create competing offerings, such as AI powered digital planning and assistance, further increasing competition.”

“Our marketing channels primarily include brand advertising through online and offline channels, loyalty programs, mobile apps, search engine marketing and optimization as well as metasearch, social media, direct and/or personalized traveler communications on our websites as well as through direct e-mail communication with our travelers.”

“Search engines may also continue to expand their voice and AI capabilities. To the extent these actions have a negative effect on our search traffic or the cost of acquiring such traffic, our business and financial performance could be adversely affected.”

“If Google or other search or metasearch companies continue to pursue these or similar strategies, which is out of our control, or we do not successfully manage our paid and unpaid search strategies, we could face a significant decrease in traffic to our websites and/or increased costs related to replacing unpaid traffic with paid traffic.”

“they continue to operate pretty much how they have in terms of looking for new ways to monetize and push SEO traffic down, et cetera.”