Expedia: AI Is A Real Threat, But The Upside Is Compelling
Expedia reported improved profitability, with EBIT margin nearing 15% and free cash flow of $3.1 billion in 2025. Its B2B segment grew revenue 23% in the latest quarter, while AI-driven changes to travel discovery and booking could threaten customer acquisition control, margins, and competitive positioning.
Why it matters — EXPE watchers are weighing growth and diversification against potential AI-related pressure on the company’s customer acquisition and profitability.