Booking Dynamics and AI Strategies: Contradictions Unveiled in 2025 Q2 Earnings Call

Revenue and Earnings Performance:
- Expedia Group reported revenue of $3.8 billion for Q2 2025, up 6% year-over-year. EBITDA margins expanded by nearly 2 points, reaching 24%.
- The growth was driven by strong performance in B2B and advertising segments, despite a soft U.S. travel market, and the company exceeded top and bottom-line expectations.

B2B and Advertising Growth:
- B2B gross bookings increased 17%, while advertising revenue grew 19%, with a record number of active partners.
- This growth was supported by increased volume, particularly in international markets, and the shift in timing from Easter, along with volume leveraging on cost of sales and overhead.

Strategic Priorities and AI Integration:
- The company's strategic priorities of delivering value to travelers, investing where opportunities are seen, and expanding margins were supported by AI acceleration across supply, loyalty, and product enhancements.
- AI filters improved conversion rates, and AI-powered developer assistance reduced cycle times by more than 20%, contributing to productivity and effectiveness.

Consumer Business Growth:
- Brand Expedia grew booked room nights by 5%, benefiting from international growth, particularly in EMEA and the rest of the world.
- The brand's performance was driven by a strong value proposition, new supply agreements, and better attach rates, reflecting share growth in various markets.