How Are Expedia’s Different Segments Contributing To Its Growth?

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EXPE: Expedia logo
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Though it faced a few technical glitches which resulted in a setback of its Q2 2016 earnings results, Expedia seems to be on a growth track with its OTA platform leading the way. Expedia acquired big players including Travelocity, Orbitz, and HomeAway in 2015, which aided it in the consolidation of the U.S. OTA market. Currently the company has close to $70 billion in gross bookings over its 200 websites across 75 countries.

The OTA segment contributes to around 80% of Expedia’s revenues. Currently, HomeAway–the world’s largest vacation rental marketplace, contributes to around 8% of Expedia’s revenues, however that is expected to increase significantly in the future. Expedia’s metasearch arm Trivago is also growing impressively. Expedia’s advertising and media segment, where Trivago is the primary driver, is expected to grow at a CAGR exceeding 10% over the next 7 years. Expedia’s corporate travel arm, Egencia’s growth, currently exceeds that of the industry.

Expedia’s Segment-Wise Revenue Allocation For H1 2016 ($ Million, %)

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(Source: Expedia Q2 2016 10Q )

In terms of products, hotels contribute around 60%, followed by the rest.

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(Source: Expedia 2016 Q2 10Q Skift Estimates)

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