Key Takeaways:
– Expedia, the parent company of Vrbo, recorded $425 million in profits during the third quarter of 2023.
– Expedia’s revenue for the third quarter was $3.9 billion, a 9 percent increase from the same period in 2022.
– Expedia’s lodging gross bookings reached $18.5 billion, an 8 percent increase from the previous year and a record high.
– Vrbo was negatively affected by the Maui wildfires and a shift in consumer preference towards short-term stays in urban centers.
– Expedia completed the migration of Vrbo onto the same front-end stack as its other properties.
– The company announced its intention to buy back $5 million in shares from investors and completed $1.8 billion in share repurchases year-to-date.
inman:
Despite Vrbo itself struggling, Expedia, the travel booking company that owns the short-term rentals platform, recorded $425 million in profits during the third quarter.
The verdict is in — the old way of doing business is over. Join us at Inman Connect New York Jan. 23-25, when together we’ll conquer today’s market challenges and prepare for tomorrow’s opportunities. Defy the market and bet big on your future.
Expedia Group, the parent company of the short-term rentals platform Vrbo, tallied record revenue and profits during the third quarter of 2023, despite some challenges to Vrbo’s model.
The travel booking company recorded revenue of $3.9 billion, a 9 percent increase from the third quarter of 2022, along with $425 million in profits.
Expedia, the company that owns Vrbo, considered one of Airbnb’s biggest competitors in the vacation rental sphere, reported lodging gross bookings at $18.5 billion, an 8 percent increase from 2022 and a record high, according to an earnings report released Thursday.
“Our strong third-quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand and continued improvements stemming from the execution of our strategy,” Expedia Vice Chairman and CEO Peter Kern said in a statement.
The third quarter was the first profitable quarter of the year for the company, with the first and second quarters bringing them widening losses.
While it does not release specific data on Vrbo in its earnings reports, executives at the travel booking company said during a conference call that Vrbo was negatively affected both by the large-scale wildfires in Maui and a shift in consumer preference from long-term stays in vacation destinations to short-term stays in urban centers that favor hotels. The company also announced during the call it had completed a migration of Vrbo onto the same front-end stack as Expedia’s other properties.
“Lodging gross bookings grew 8 percent and were the highest per quarter on record. This acceleration would have been even higher but for our Vrbo business,” Expedia’s Chief Financial Officer Julie Whalen said during the call. “Our Vrbo business was particularly impacted by the recent Maui fires as well as the brand’s short-term migration to our single front-end stack, and the continued softness in the demand shift towards more urban areas.”
The company also announced in the same report its intention to buy back $5 million in shares from its investors and that it had completed a record $1.8 billion in share repurchases year-to-date.
“With the last of our major migrations behind us, we are now well positioned to further accelerate our business and drive stronger shareholder returns,” Kearn said.
Source link
Property Chomp's Take:
Expedia Group, the parent company of Vrbo, the popular short-term rentals platform, experienced a successful third quarter in terms of revenue and profits. Despite Vrbo facing some challenges, Expedia recorded $425 million in profits during this period. This achievement demonstrates the resilience of Expedia's travel booking business and its ability to navigate the evolving market.
During the third quarter of 2023, Expedia Group generated $3.9 billion in revenue, marking a 9 percent increase compared to the same period in 2022. Additionally, the company reported lodging gross bookings of $18.5 billion, an 8 percent increase from the previous year and a record high for the company. These positive results reflect the strong demand for travel and the execution of Expedia's strategic initiatives.
Expedia's Vice Chairman and CEO, Peter Kern, expressed satisfaction with the company's performance, stating, "Our strong third-quarter results with record revenue and profitability came in ahead of our guidance and reflect the resilience of travel demand and continued improvements stemming from the execution of our strategy."
It is worth noting that the third quarter was the first profitable quarter of the year for Expedia, with the first and second quarters reporting widening losses. This turnaround in profitability indicates that Expedia's efforts to overcome challenges and adapt to market conditions are paying off.
While Expedia does not provide specific data on Vrbo's performance in its earnings reports, executives revealed during a conference call that Vrbo was negatively affected by the large-scale wildfires in Maui and a shift in consumer preferences. The recent wildfires and the increasing preference for short-term stays in urban centers, which favor hotels, impacted Vrbo's business. Expedia also announced that Vrbo had completed its migration onto the same front-end stack as Expedia's other properties.
Expedia's Chief Financial Officer, Julie Whalen, acknowledged Vrbo's challenges during the conference call, stating, "Our Vrbo business was particularly impacted by the recent Maui fires as well as the brand's short-term migration to our single front-end stack, and the continued softness in the demand shift towards more urban areas."
Despite these obstacles, Expedia remains optimistic about its future prospects. The company announced its intention to repurchase $5 million in shares from investors and highlighted its completion of a record $1.8 billion in share repurchases year-to-date. Expedia's CEO, Peter Kern, stated, "With the last of our major migrations behind us, we are now well positioned to further accelerate our business and drive stronger shareholder returns."
Expedia's success in the third quarter demonstrates its resilience and ability to adapt to changing market conditions. Despite Vrbo's challenges, the travel booking company continues to thrive and deliver strong financial results. Expedia's focus on executing its strategic initiatives and its commitment to meeting customer demand positions it well for future growth and success in the vacation rental sector.
