Expedia Group (EXPE) Q3 2026 Earnings Call: Q&A Summary

Q: Mark Mahaney of Evercore ISI asked about drag factors pressuring growth and profitability in the fourth quarter.

A: Derek Andersen noted a softer operating environment due to the U.S. election cycle and geopolitical events in the Middle East and Europe, alongside lapping B2B promotional activity and the timing of the fall sale.

Q: Ken Gawrelski of Wells Fargo asked about the components of the Q4 bookings guide, specifically regarding ADRs versus room nights.

A: Derek Andersen stated that air ATPs are expected to remain steady, while room night growth is expected to be positive but modest, with deceleration in line with overall bookings guidance.

Q: Mark Mahaney of Evercore ISI asked if the economics of agentic partnerships are settled and how they view this as a customer acquisition channel.

A: Ariane Gorin explained that it is early days with small traffic volumes, but the traffic is high-intent. Economics are being worked out, and while agents are a discovery channel, bookings still occur on trusted brands.

Q: Justin Post of Bank of America asked if agentic traffic is incremental or replacing paid and direct traffic.

A: Ariane Gorin stated that the traffic is small and high-quality, and they do not see it impacting direct traffic, suggesting it is likely incremental or taken from other paid channels.

Q: Doug Anmuth of JPMorgan asked about the integration with AI agents and the benefits of AI experiences on the company's own platform.

A: Ariane Gorin noted that integrations provide access to prices and content, while on-platform AI is driving conversion through better personalization, rankings, and natural language search and booking flows.

Q: Deepak Mathivanan of Cantor Fitzgerald asked about the impact of Google AI search and OpenAI advertising products.

A: Ariane Gorin said they are monitoring traffic shifts and moving investments across channels, and they are currently testing and learning with OpenAI advertising products.

Q: Eric Sheridan of Goldman Sachs asked about the sustainability of B2B growth and the investment cycles for margins.

A: Ariane Gorin and Derek Andersen highlighted that growth is broad-based, driven by wallet share, product enhancements, and becoming a one-stop shop. Margin pressure in the near term is due to partner mix and recent acquisitions, but the long-term opportunity remains attractive.

Q: Ken Gawrelski of Wells Fargo asked about B2B opportunities in an agentic world.

A: Ariane Gorin noted that they are helping existing partners adopt agent capabilities and are positioned to act as a travel provider for new agents entering the space.

Q: Alex Brignall of Rothschild & Co Redburn asked about the size of the B2B market and the company's share.

A: Ariane Gorin described the market as over $3 trillion, excluding supplier direct and major OTAs. The opportunity is multidimensional, focusing on gaining share of wallet with existing partners and acquiring new ones.

Q: Justin Post of Bank of America asked about margin leverage on the B2C side and if Q4 spending is related to marketing.

A: Derek Andersen explained that Q4 margin moderation is due to slower bookings growth and diminished leverage on fixed costs, noting that marketing efficiency gains continue but at a slower pace.

Q: Jed Kelly of Oppenheimer & Co. Inc. asked if the low-hanging fruit for margin expansion is gone and how to balance growth versus profitability.

A: Derek Andersen stated that they see opportunity for incremental progress, as efficiency gains are durable and they remain committed to disciplined cost management while investing in long-term growth.

Q: Lloyd Walmsley of Mizuho asked about the contribution of CarTrawler and the deceleration in advertising growth.

A: Derek Andersen noted that the CarTrawler impact is minor. Advertising growth slowed but remains a high-margin business, and they are implementing product improvements for better campaign management and AI-enabled tools.

Q: Naved Khan of B. Riley Securities asked about the changes to the Vrbo host fee and the impact on take rates.

A: Ariane Gorin stated that the commission fee changes will not impact the take rate and are intended to simplify the experience for travelers.