Expedia Group, Inc. has recently released its 10-K report, detailing its operations as an online travel company in the United States and internationally. The company operates through B2C, B2B, and trivago segments, offering various travel products and services through its brands such as Brand Expedia, Hotels.com, Vrbo, Orbitz, and Travelocity. Expedia Group also provides travel technology to various travel and non-travel companies and engages in brand advertising through online and offline channels.
In the 10-K report, Expedia Group's management discusses the company's purpose of connecting travelers, partners, and advertisers through trusted brands, leading technology, and rich first-party data. The report highlights the global macroeconomic and geopolitical pressures that impacted the travel industry in 2025, leading to weaker than expected travel demand in the United States in the first half of the year. The company also faces uncertainties in the global tax environment and is in various stages of inquiry or audit with various tax authorities.
The report reveals that Expedia Group operates in an increasingly competitive online travel market, with online penetration rates varying across different regions. The company faces competition from search engine companies, metasearch companies, and direct online distribution efforts by airlines and lodging companies. Additionally, the report mentions the impact of the "sharing economy" and the emergence of alternative business models on the travel and lodging industry.
In terms of financial performance, the report states that lodging accounted for 80% of Expedia Group's total worldwide revenue in 2025, with room nights booked growing by 8%. The report also discusses the company's revenue from advertising and media, which saw a 19% increase in 2025, and its air segment, which accounted for 3% of total worldwide revenue in 2025.
Expedia Group also experiences seasonal fluctuations in the demand for its travel services, with traditional leisure travel bookings being highest in the first three quarters of the year. The report emphasizes the company's critical accounting policies and estimates, particularly in areas such as accounting for certain merchant revenue and deferred loyalty rewards.
The market has reacted to these announcements by moving the company's shares -3.12% to a price of $285.11. For the full picture, make sure to review Expedia's 10-K report.
