Expedia Group performed better than expected in the second quarter of 2026. Gross bookings increased by 12% and revenue by 14%. But behind these figures, a discrepancy is becoming difficult to ignore: B2B is growing much faster than the consumer business, while airline bookings are declining.
The financial results published on August 5th provide a fairly clear picture of the quarter ending June 30th. Expedia Group recorded $33.9 billion in gross bookings, compared to $30.4 billion a year earlier. Its revenue reached $4.315 billion, up 14%.
The group has exceeded the high end of its own quarterly forecasts and is now raising its targets for the whole of 2026.
Summary
Expedia Group: B2B is becoming hard to ignore
This is probably the most interesting figure for tourism professionals. B2B bookings reached $10.742 billion in the second quarter, representing a 21% year-over-year increase.
Revenue from this activity increased even faster, by 23%, to $1.493 billion.
By comparison, bookings for the B2C business increased by 8%, to $23.186 billion, and its revenue also increased by 8%.
Expedia Group's B2B business provides travel technology and inventory to airlines, traditional travel agencies, online distributors, travel management companies, and financial institutions. Its growth therefore reflects not only the evolution of tourism demand but also Expedia's significant role in distribution on behalf of its partners.
According to the specialized press, Skift also points out that Expedia Group is now looking to expand this activity beyond its historical base in accommodation, with more flights, activities, ground transportation and travel protection.
Accommodation prices are rising, airfare prices are falling
The results are solid, but they don't tell the story of a market that is accelerating uniformly.
Expedia Group recorded 111.5 million room nights booked in the second quarter, up 6% year-over-year. Gross hotel bookings reached $24.6 billion, an increase of 11%.
At the same time, the number of airline tickets booked fell by 5%, from 15 million to 14.2 million. Revenue directly related to air travel declined by 13%, to $91 million.
Another interesting statistic: sales from outlets located outside the United States increased by 18%, compared to 12% in the US market.
These differences suggest we should avoid drawing hasty conclusions about a general acceleration in global tourism. Expedia Group is gaining volume, but the dynamics vary considerably across different business lines.
Net income jumped 166%, with one important nuance
The figure is impressive: the net income attributable to Expedia Group reached $878 million, compared to $330 million in the second quarter of 2025, representing an increase of 166%.
Operational progress is real. Operating income increased by 65%, to $800 million, and adjusted EBITDA gained 23%, to $1.119 billion.
The 166% jump in net income, however, needs to be considered in the context of the full financial statements. The reconciliation published by Expedia notably reveals a net gain of $280 million on minority investments. Adjusted net income, which excludes several such items, increased by 29%.
The adjusted EBITDA margin reached 25.9%, compared to 24% a year earlier.
Expedia Group raises its targets for 2026
After this quarter, Expedia Group now expects gross bookings of between $129.5 billion and $130.8 billion for the full year. The previous forecast was between $127 billion and $129 billion.
The group expects annual booking growth of 8% to 9%, compared to 6% to 8% previously.
The revenue forecast is also raised, to between $16.05 billion and $16.22 billion, representing an expected increase of 9% to 10% for the year.
The third quarter, however, is expected to show slower growth than the second. Expedia forecasts gross booking growth of between 5% and 7% and revenue growth of between 5% and 8%.
In other words, the group is indeed raising its ambitions for 2026, but is not extrapolating the 12% growth in bookings and 14% growth in revenue recorded in the spring to the following months.
And what about artificial intelligence in all of this?
Ariane Gorin, CEO of Expedia Group, cites artificial intelligence among the tools used to accelerate innovation, further personalize products and improve the group's efficiency.
However, the published results do not quantify AI's contribution to the quarter's growth. No revenue, cost savings, or additional bookings are directly attributed to this technology in the financial statement.
Presenting AI as one of the proven drivers of the 14% increase in revenue would therefore go beyond the available data.
For tourism professionals, the real signal comes from B2B
Expedia Group's results show above all how much the battle for tourist distribution now goes beyond the major brands visible to the traveler.
Behind Expedia, Hotels.com or Vrbo, a less visible but already considerable activity is developing, which allows other companies to sell the group's inventory and services to their own customers.
With nearly $10.75 billion in B2B bookings in a single quarter and growth of 21%, this part of the Expedia Group model deserves special attention from agencies, accommodation providers, carriers and travel tech companies today.
Sources
- https://ir.expediagroup.com/news-and-events/news/news-details/2026/Expedia-Group-Reports-Second-Quarter-2026-Results/default.aspx
- https://www.sec.gov/Archives/edgar/data/1324424/000132442426000051/earningsrelease-q22026.htm
- https://www.wsj.com/business/earnings/expedia-raises-revenue-view-on-higher-profit-revenue-b07176ee
- https://newsletters.skift.com/p/expedia-s-one-stop-shop
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