Expedia Focuses on Personalization, Loyalty and App Enhancements

Expedia Group is prioritizing digital engagement and personalized customer experiences as key drivers of growth.

The company’s third-quarter financial results reflect a strategic focus on technology and customer loyalty initiatives, particularly through its mobile app and its loyalty program, One Key. The integration of generative AI technology into service offerings aims to enhance user experience and drive customer momentum, Expedia Group CEO Ariane Gorin noted Thursday (Nov. 7) during the company’s third-quarter earnings call.

“Over 70% of travelers read reviews, and we use generative AI to summarize reviews of properties and neighborhoods,” Gorin explained. “Customer service leverages AI so travelers can self-serve, which reduces costs and improves the customer experience.”

In the third quarter, Expedia’s booked room nights rose 9% compared to 2023, while the company’s total gross bookings increased 7%, to $27.5 billion. Gorin noted this momentum mirrors Expedia’s ongoing focus on consumer engagement, as well as the impact of recent tech investments.

A significant portion of Expedia’s growth in the third quarter can be attributed to its mobile app, Gorin said, and global app downloads increased nearly 10%, as the percentage of bookings made through the app rose by three percentage points. The company has worked to enhance the app’s functionality to deliver a more personalized experience, she added. With increased focus on streamlining the shopping experience and improving navigation, the app plays a crucial role in driving engagement and improvements include faster load times and a more intuitive user interface, contributing to higher conversion rates and improved customer experiences.

In particular, the company’s vacation rental platform, Vrbo, has seen notable improvements, Gorin explained. The Vrbo app is becoming faster and added new features designed to make shopping for vacation homes more seamless. Additionally, Vrbo’s efforts to expand its inventory — adding over a million new units previously available only through Brand Expedia — has improved the breadth and quality of options for customers.

Expedia is also doubling down on personalization as a means of driving customer retention and loyalty, Gorin said. The One Key program, launched in 2023, saw positive momentum. Gorin said a large portion of bookings is now coming from loyalty members, and the tiered structure — Silver, Gold, and Platinum — has provided customers with added incentives to engage with the brand across multiple platforms. One of the most notable aspects of One Key, she added, is its ability to drive cross-platform purchases, allowing users to accumulate rewards on one platform and redeem them across others.

“We have long history of being able to attach things,” Gorin explained. “That’s always been at the core of the strategy for Expedia and is something we continue to work on. Being able to personalize by category and item is important to us. We’re continuing to fine-tune our loyalty program value proposition for each brand and each market.”

Third-quarter revenue grew 3% to $4.1 billion; B2C gross bookings increased 3% and B2B revenue rose 19%, to $1.2 billion.

“Our third-quarter results exceeded our expectations on gross bookings and earnings, with revenue landing in-line,” Gorin said. “We accelerated bookings growth in our consumer business for the second consecutive quarter, and our advertising and B2B businesses continue to deliver strong double-digit growth.”

Expedia Group announced Julie Whalen will step down from her role as Chief Financial Officer, effective upon the appointment of her successor, expected before Feb. 17, 2025. She has also resigned from the Board of Directors, effective immediately.

“I want to thank Julie for all she has done for Expedia Group as a board member and CFO over the last five years,” Gorin stated. “We are grateful for her contributions.”