Expedia Group met the upper end of its second-quarter 2024 profit forecast despite a challenging macro environment and weak travel demand, according to an earnings report released on Thursday.
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Expedia Group met the upper end of its second-quarter 2024 profit forecast despite a challenging macro environment and weak travel demand, according to an earnings report released on Thursday.
The company reported that accommodation bookings across all platforms, including Expedia, Vrbo and Hotels.com, totaled $20.7 billion in the second quarter, up 8% from 2023. % to the previous year.
Room nights grew by double digits in the second quarter, totaling 98.9 million rooms. The growth rate accelerated to 10%, with Brand Expedia’s growth rate approaching 20%. The growth rate of total room nights was the fastest since the first quarter of 2023.
The company’s net profit was US$386 million, and its adjusted net profit was US$469 million.
“Our second quarter results exceeded our expectations, with gross bookings and revenue growing 6%. We are pleased with the momentum and continued improvement in our consumer brands. However, in July, we saw more challenging macro conditions environment and travel demand. As a result, we are adjusting our expectations for the remainder of the year.
Expedia’s average daily room rate (ADR) was flat in the second quarter due to currency issues, with customers switching to lower-priced properties, executives said on a July earnings call.
The company also cited softening ticket prices.
These factors combined led to weaker-than-expected growth in consumer and B2B business in July and are affecting the outlook for the third quarter of the year.
Expedia expects third-quarter gross bookings and revenue growth to increase by 3% to 5% compared with the same period last year.
Full-year gross bookings are expected to be at the low end of the previously reported mid- to high-single-digit range, about 4%, with revenue growth 2 percentage points higher, at about 6%.
“While recent market conditions have been challenging, the continued execution of our growth plans and our strong financial position [that] Let’s be confident in the long-term opportunities for profitable growth.
This article has been updated with additional information from Expedia’s earnings call.
Email Richelle Hamill
