Strong travel demand lifts online booking platforms as both companies signal steady momentum into 2026.
Expedia’s (EXPE) latest earnings report sent shares sharply higher after the company beat Wall Street expectations and raised its outlook. Meanwhile, Airbnb’s (ABNB) results highlighted ongoing growth in international travel and new business initiatives despite slightly softer margins. Together, these results underscore a resilient global travel market that continues to attract investor attention.
Key Points
- Expedia posted its biggest earnings beat in three years, with revenue up 9% and raised its full-year guidance.
- Airbnb grew revenue nearly 10% and forecast stronger fourth-quarter sales driven by longer stays and new features.
- Both companies emphasized the role of AI, innovation, and diversification as drivers of long-term growth.
Expedia Delivers Strong Quarter with Upbeat Guidance
Expedia reported third-quarter adjusted earnings of $7.57 per share on $4.4 billion in sales, a 9% increase from the prior year. The company also lifted its full-year revenue forecast to 6%–7% and gross bookings growth to 7%, signaling confidence in continued travel demand.
Shares jumped more than 17% following the report, marking one of the company’s strongest market reactions in recent years. Analysts praised the results, noting strength across both consumer and business-to-business (B2B) channels. Expedia’s B2B segment saw its 17th consecutive quarter of double-digit growth, up 26% year-over-year.
Executives pointed to the integration of artificial intelligence across its platforms as a major contributor to operational gains. AI-driven recommendations and automation helped boost customer engagement and expand margins, while partnerships with Google (GOOG) and OpenAI addressed investor concerns about technology disruption in travel booking.
How Is Airbnb Performing Amid Market Shifts?
Airbnb’s third-quarter results showed steady performance, with revenue up nearly 10% to $4.1 billion. While earnings came in slightly below estimates, the company delivered stronger-than-expected guidance for the fourth quarter, projecting revenue growth of up to 10%.
CEO Brian Chesky attributed the results to strong international demand and new product innovations, including flexible payment options and the expansion of Airbnb Experiences and hotel listings. The company’s “Reserve Now, Pay Later” feature proved particularly popular, with 70% of eligible U.S. users opting for it—helping increase overall bookings.
Airbnb is also investing heavily in artificial intelligence to improve search, personalization, and customer service. An AI-powered support assistant reduced human intervention by 15%, and new conversational search tools are being tested globally. These efforts are aimed at improving user satisfaction and scaling efficiency across the platform.
What Does the Travel Recovery Mean for Investors?
Both Expedia and Airbnb are emerging from 2025 with renewed optimism. Expedia’s raised outlook reflects a broader recovery in travel spending, while Airbnb’s ongoing expansion into experiences, hotels, and AI-powered features suggests a long runway for future growth.
For investors learning the basics of investing or looking to analyze stocks in the travel sector, these results highlight two companies balancing short-term challenges with long-term opportunity. Expedia’s focus on cost control and B2B diversification provides stability, while Airbnb’s innovation-driven approach positions it as one of the best company investments for exposure to alternative accommodations.
While macroeconomic uncertainty and competitive pressures remain, strong consumer demand and improving technology integration suggest continued momentum. Investors seeking companies that are good to invest in may find both Expedia and Airbnb well placed for steady growth as travel patterns normalize and digital adoption expands.
Conclusion
Expedia’s record-breaking quarter and Airbnb’s steady expansion underline a robust global travel recovery. Each company is leveraging AI, product innovation, and international growth to maintain momentum. For retail investors tracking investment news, both names demonstrate how adaptability and technology can drive lasting value in evolving markets.
FAQs
Why did Expedia’s stock rise so sharply after earnings?
Expedia exceeded Wall Street’s expectations on both earnings and revenue, raised its full-year forecast, and showed strong growth in its B2B segment, prompting a 17% surge in its share price.
How is Airbnb using AI to enhance its platform?
Airbnb is expanding AI-driven tools such as conversational search and automated support, helping improve customer experiences and operational efficiency.
Is travel demand still growing despite economic uncertainty?
Yes. Both Expedia and Airbnb reported strong demand across customer segments, with longer booking windows and sustained interest in both premium and budget travel options.
Which company offers better long-term growth potential?
Expedia benefits from diversified revenue streams and strong cost management, while Airbnb’s focus on experiences, hotels, and AI positions it for scalable, global growth.
Are these among the best stocks to buy in travel?
While every investor’s situation differs, both companies show strong fundamentals and innovation-driven growth, making them key players to watch in the travel and leisure sector.
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