Expedia Leans on AI and B2B Growth to Lift Outlook After Strong Q2

Expedia Leans on AI and B2B Growth to Lift Outlook After Strong Q2 --> By PYMNTS | August 6, 2026 Share: --> | Listen to Article Listen Pause --> Expedia Group entered the summer travel season with more than just strong demand, according to its recent earnings call. The company used its second-quarter results to argue that its strategy of pairing artificial intelligence (AI) investments with a fast-growing B2B business is giving it multiple engines for growth, even as parts of Europe remain soft and the broader travel industry faces a more uncertain economic backdrop. Get the Full Story Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required. yes Subscribe to our daily newsletter, PYMNTS Today. By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions . Δ Executives said consumers are still prioritizing travel, particularly in the U.S., where longer trips and earlier bookings helped push results above expectations for the fifth consecutive quarter. CEO Ariane Gorin said Expedia also benefited from demand tied to the recent 2026 FIFA World Cup late in the quarter and continued momentum across its business-to-business operations. “We had a solid second quarter, delivering strong financial results while making tangible progress on our strategic priorities,” Gorin told analysts on Wednesday (Aug. 5). “We exceeded the high end of both our top- and bottom-line expectations for the fifth quarter in a row.” She added that healthy travel demand and the company’s first-half performance prompted Expedia to raise its full-year guidance. Much of the earnings call centered on AI, though executives framed it less as a standalone product and more as a tool for business operations. Expedia said AI is making search, recommendations and trip planning more personalized while helping engineers develop products more quickly. The company has also expanded partnerships with AI platforms, including ChatGPT and Google’s newer AI services, and recently agreed to acquire AI travel planning app Layla as it looks to reach travelers earlier in the booking process. During the question-and-answer session, Gorin said the company is already seeing measurable benefits from AI inside its core products while also preparing for a future in which more travelers begin their journeys through AI-powered search tools instead of traditional websites. “We are seeing immediate impact,” she said, referring to AI-powered recommendations, personalization and search ranking. Gorin said that the technology is also helping Expedia better understand traveler preferences and build deeper customer relationships over time. Executives also pointed to Expedia’s B2B business as a major contributor to growth. The segment posted its 20th consecutive quarter of double-digit growth as the company continued building what it describes as a one-stop travel platform for partners. Chief Financial Officer Derek Andersen said disciplined marketing, tighter cost controls and continued demand helped drive margin expansion during the quarter. While growth is expected to moderate in the third quarter because of tougher year-over-year comparisons and foreign exchange pressures, Expedia raised its outlook for the full year, including higher expectations for bookings, revenue and adjusted EBITDA margins. Key figures: Gross bookings increased 12% year over year to $33.9 billion, while revenue climbed 14% to $4.3 billion. Adjusted EBITDA grew 23% to $1.12 billion, with adjusted EBITDA margin expanding by 196 basis points. Expedia increased its full-year outlook to 8% to 9% gross bookings growth, 9% to 10% revenue growth and 150 to 175 basis points of adjusted EBITDA margin expansion. Expedia reported overall Q2 revenue of $4.315 billion, up 14% from a year earlier, on gross bookings of $30.4 billion. Net income attributable to Expedia surged to $878 million from $330 million a year ago, while adjusted EBITDA reached $1.119 billion. Management said resilient consumer travel demand, accelerating B2B growth, improving operating efficiency and expanding use of AI across the platform positioned the company to raise its financial outlook for the remainder of 2026. Recommended Expedia Leans on AI and B2B Growth to Lift Outlook After Strong Q2 Etsy’s Three-Way AI Bet Is Starting to Pay Off Meta Model’s Hack Mirrors Previous OpenAI and Anthropic Security Breaches Nayax Aims to Transition From Payments Platform to Bank See More In: AI , B2B , Earnings , Expedia , News , PYMNTS News , travel , What's Hot