5 Revealing Analyst Questions From Expedia's Q2 Earnings Call

Expedia’s second quarter results were shaped by a robust performance in its B2B and international businesses, offsetting continued softness in the U.S. leisure travel market. Management pointed to resilience among higher-end consumers and strong execution of strategic priorities, including investments in supply partnerships and loyalty initiatives. CEO Ariane Gorin highlighted the positive impact of new supply, such as the partnership with Southwest Airlines and Premier Inn, as well as improved conversion rates driven by AI-powered product enhancements. CFO Scott Schenkel emphasized that cost discipline, particularly in direct marketing and customer service, contributed to increased operating efficiency.

Is now the time to buy EXPE? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Expedia’s Q2 Earnings Call

• Eric Sheridan (Goldman Sachs) asked about aligning strategic priorities with changing traffic dynamics; CEO Ariane Gorin explained their focus on direct and app traffic, as well as partnerships with AI providers, to capture shifting consumer behavior.
• Justin Post (Bank of America) inquired about the progress at Hotels.com; Gorin detailed improved brand awareness and new product features like price alerts, attributing gains to the April brand relaunch and international loyalty efforts.
• Lee Horowitz (Deutsche Bank) questioned the drivers of marketing leverage improvements; Gorin responded that better product experience and sharper brand positioning are increasing repeat rates and direct bookings, while Schenkel added that cost restructuring actions are not yet fully reflected.
• Naved Khan (B. Riley Securities) asked about the impact of supplier-driven promotions and the shift to all-in pricing; Gorin noted more bookings on promotional rates and emphasized methodical optimization between marketing, loyalty, and promotions.
• Mark Mahaney (Evercore ISI) requested insight into areas most improved and those still lagging; Gorin cited B2B and advertising as recent strengths and identified faster execution in consumer brands as a key area of ongoing focus.

Catalysts in Upcoming Quarters

In the coming quarters, key factors to watch will include (1) the pace of B2B and advertising growth, especially in Asia and Europe; (2) operational efficiency gains from AI integration and cost actions; and (3) signs of a rebound or further weakness in U.S. leisure travel demand. Execution on loyalty program improvements and the rollout of new supply partnerships will also be important indicators of progress.

Expedia currently trades at $209.24, up from $188.16 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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