Expedia’s $35.5B Quarter Gets a Boost From B2B Partners

Expedia Group reported stronger first-quarter 2026 results, helped by fast growth in its business-to-business segment.

Total gross bookings rose 13 percent year over year to $35.5 billion, while revenue increased 15 percent to $3.43 billion. Adjusted EBITDA also rose 83 percent to $542 million, showing stronger profitability as well as higher booking volume.

The B2B segment was the standout. B2B gross bookings grew 22 percent, and revenue rose 25 percent. This business lets other companies, such as banks, airlines, loyalty programs, and digital platforms, sell Expedia’s travel supply through their own channels.

B2B is smaller, but it is becoming more strategic

Expedia’s consumer business is still much larger. Its consumer brands, including Expedia, Hotels.com, and Vrbo, generated $24.8 billion in gross bookings in the quarter. B2B generated $10.7 billion. So Expedia still depends more on its own travel brands, but the faster growth is clearly coming from partners.

Travelers no longer start every trip on a traditional online travel agency website. Many begin inside banking apps, loyalty platforms, mobility apps, or AI tools. Expedia’s B2B model helps the company appear in those places without needing every traveler to visit Expedia.com first.

Uber shows how Expedia wants to reach new travelers

The new Uber partnership is a clear example of that strategy. Uber has launched hotel bookings through Expedia Group, allowing users to reserve hotels inside the Uber app. Uber said the feature adds travel booking to its broader app experience and gives Uber One members extra value, including 10 percent Uber One credits back on hotel bookings.

March disruption made the outlook more cautious

Expedia’s first quarter was strong, but management warned that growth slowed in March. The company pointed to the Middle East conflict and travel advisories in Mexico as causes of weaker demand. The Middle East represents less than 2 percent of Expedia’s total bookings, but the conflict still led to more cancellations across Europe and Asia.

Expedia said bookings and room night growth would have been about two percentage points higher without these disruptions. For the second quarter, the company expects gross bookings growth of 7 percent to 9 percent and revenue growth of 9 percent to 11 percent, a slower pace than in the first quarter.

AI is promising, but still not a major booking source

Expedia is also preparing for a future where AI tools influence how travelers search and book. If travelers ask an AI assistant to compare hotels or plan a trip, Expedia wants its supply to appear in that conversation.

Expedia is actively preparing for an AI-led travel journey, where trip discovery may start inside ChatGPT, Google, Perplexity, Amazon, or other AI environments. But its own research also shows why this shift will not be immediate: travelers are open to using AI for ideas, price tracking, and itinerary planning, yet most still prefer to complete bookings with trusted travel brands.

Photo by Anand Shetye on Unsplash