B2B strength and international opportunities offset sluggish Vrbo and loyalty shifts
Sep 19, 2025
Expedia Group CEO Ariane Gorin told the Skift Global Forum that the company’s consumer business slowed in Q2 mainly due to a weak U.S. travel market, while its B2B arm expanded strongly. She pointed to Vrbo softness, loyalty program changes, and Google AI’s impact, but remained confident in international growth and Expedia’s ability to adapt to new waves of technology.
Key takeaways
- Consumer weakness tied to U.S. market: Expedia’s B2C brands (Expedia.com, Hotels.com, Vrbo) grew gross bookings just 1% year-over-year, which Gorin attributed mostly to sluggish U.S. demand.
- B2B shows strong momentum: Expedia’s B2B segment, with greater international exposure, grew 17% in the same period, underscoring a market-driven disparity.
- Vrbo under pressure: Softer conditions in the U.S. meant lower daily rates, shorter stays, and higher cancellations for Vrbo, though Gorin expects promotions and expanded inventory sharing to help.
- Loyalty program challenges: The shift from Hotels.com’s free-night program to Expedia’s One Key system hurt user sentiment, despite management calling One Key “fantastic.”
- International focus: Gorin highlighted growth opportunities in Brazil, Northern Europe, the UK, and Japan, where Expedia has stronger product-market fit.
- Preparing for AI disruption: Expedia is engaging directly with major LLM providers to adapt to generative and agentic AI. While Google’s AI Overviews reduce site visits, the traffic that does arrive is more likely to convert.
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