Expedia shares jump on strong bookings from business clients

(Reuters) -Shares of Expedia (EXPE) rose 15.8% in premarket trading on Friday after the online travel agent forecast higher 2025 revenue and margin ​growth, banking on strong bookings from its business clients.

The Seattle-based company ‌reported that its B2B segment, which serves corporate travel management firms, offline travel agents and financial institutions, saw ‌bookings grow 26% in the third quarter from a year ago.

This was driven by the addition of new travel agency customers and the expansion of Expedia’s agent loyalty program, CEO Ariane Gorin said on the post-earnings call, adding the firm would continue investing in this segment.

Expedia ⁠now expects 2025 revenue to grow ‌around 6.5%, up from the midpoint of 4% in its earlier projection. It projected its annual adjusted core profit margin to ‍rise 2%, compared with its previous forecast of 1%.

Many consumer-focused internet companies are ramping investment and facing pressure for it, said Jake Fuller, an analyst at BTIG, noting that Expedia’s ​expected margin expansion is a reassuring sign.

Expedia also saw its fastest growth in third-quarter U.‌S. room nights, a market in focus as Americans scale back travel amid inflation and economic uncertainty.

U.S. share gains were likely driven by travelers increasingly using online travel agencies and hunting for discounts, said Michael Bellisario, an analyst at Baird Equity.

However, growth in the U.S. still lagged behind international markets, with room nights in Asia ⁠up over 20%.