Expedia Reports Strong Q1 Growth as B2B Travel Business Surges

Expedia Group is finding growth in a part of its business most travelers never see.

The company’s been getting a big revenue push from its B2B division – the side of the business that powers travel bookings for partners, banks, airlines, loyalty programs, and other travel platforms.

In the fourth quarter of 2025, Expedia’s earnings revealed that the company’s B2B business surged nearly 24 percent and was doing most of the heavy lifting, growing five times faster than its consumer brands, per Skift.

First-quarter 2026 revenue for the Seattle-based company came in at $3.43 billion, a 15 percent year-over-year gain, per the company’s earnings release.

Booked room nights grew six percent, while total gross bookings grew 13 percent, per the company’s May 7 Q1 release.

“Our first quarter results marked a strong start to the year, as we delivered double-digit bookings and revenue growth and
drove meaningful margin expansion despite a dynamic macroeconomic environment,” said Ariane Gorin, CEO of
Expedia Group. “Through disciplined execution of our strategic priorities, we achieved the highest first-quarter
profitability in our history.”

“When travelers needed us most, we took care of them, working with our partners in the region to extend cancellation flexibility and augmenting our service teams. While the Middle East itself represents less than 2% of our total bookings, we saw elevated traveler cancellations across Europe and Asia. Cancellation rates stabilized in early April, and booking activity re-accelerated throughout the month,” Gorin continued.

Related: Airbnb CEO Brian Chesky will change ‘pre-AI era’ searches mixing hotels and homes

Vrbo shifts focus as Expedia leans on B2B growth

While Expedia Group continues leaning on fast-growing B2B revenue, its vacation rental platform, Vrbo, appears to be changing strategy in its competition with Airbnb.

Over the past year, Vrbo has pulled back from several major TV advertising campaigns, including a Super Bowl ad that was later withdrawn after Airbnb filed a complaint with the National Advertising Division.

The shift suggests Vrbo is focusing less on expensive brand battles and more on profitability, product improvements, and host experience as Expedia looks to strengthen margins across the business.