Expedia Group, Inc. (EXPE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how Expedia Group, Inc. (EXPE), one of the world's leading online travel agencies with a market cap of $19.39 Billion USD as of April 2025, has evolved into the powerhouse it is today?

With a diverse portfolio that includes Expedia, Hotels.com, and Vrbo, the company reported a 7% increase in revenue to $13.7 billion and a 7% increase in gross bookings to $110.9 billion for the full year 2024, but how exactly did they get here, and what's the secret to their success?

From its humble beginnings to its current global presence, and with booked room nights growing 12% in the fourth quarter year-over-year and 9% for full year 2024, keep reading to uncover the fascinating story behind this travel giant, exploring its history, ownership structure, core mission, operational mechanics, and revenue generation strategies.

Expedia Group, Inc. (EXPE) History

Expedia Group, Inc. Founding Timeline

Year established

The company was established in 1996.

Original location

The company was originally based within Microsoft's campus in Redmond, Washington.

Founding team members

While the exact roster of the initial team may vary in different accounts, the key figure was Richard Barton, who spearheaded the creation of the company within Microsoft.

Initial capital/funding

As an internal project within Microsoft, the initial funding came from Microsoft's corporate resources. The exact amount wasn't disclosed, but it was significant enough to build and launch a comprehensive online travel platform.

Expedia Group, Inc. Evolution Milestones

Expedia Group, Inc. Transformative Moments

• Spin-off from Microsoft (1999): This was a pivotal moment, granting the company independence and the ability to pursue its own strategic vision. It allowed the company to access public markets for funding and attract talent with stock options, fostering a culture of innovation and growth.
• Acquisition by IAC (2003) and subsequent spin-off (2005): These transactions provided the company with both resources and focus. Initially, IAC's backing offered stability and scale. The later spin-off as Expedia, Inc. allowed a concentrated approach to the travel market, enhancing brand recognition and investor appeal.
• Strategic Acquisitions (Hotwire, Orbitz, etc.): The company's aggressive acquisition strategy significantly expanded its market share and brand portfolio. By integrating these brands, the company captured a broader customer base and diversified its revenue streams.
• Rebranding to Expedia Group, Inc. (2018): This rebranding signified the company's evolution from a single online travel agency to a global platform encompassing multiple brands and services. It reflected a strategic shift towards becoming a comprehensive travel technology company.
• Response to the COVID-19 Pandemic (2020): The pandemic presented an existential threat to the travel industry. The company's ability to quickly adapt by cutting costs, focusing on technology investments, and catering to changing customer needs demonstrated its resilience and strategic agility.

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Expedia Group, Inc. (EXPE) Ownership Structure

Expedia Group Inc. features a mixed ownership structure, blending public shareholders with significant institutional holdings. This structure influences the company's strategic decisions and governance.

Expedia Group, Inc.'s Current Status

Expedia Group, Inc. is a publicly traded company, meaning its shares are available for purchase on the stock market by the general public. It is listed on the Nasdaq Stock Market under the ticker symbol EXPE.

Expedia Group, Inc.'s Ownership Breakdown

As of Q4 2024, the ownership of Expedia Group, Inc. is distributed among various shareholders, including institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership breakdown:

Expedia Group, Inc.'s Leadership

Expedia Group is guided by a team of experienced leaders who steer the company's strategic direction and operational execution. Key members of the leadership team as of April 2025 include:

• Peter Kern: Vice Chairman and Chief Executive Officer
• Julie Whalen: Chief Financial Officer

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Expedia Group, Inc. (EXPE) Mission and Values

Expedia Group's mission is to revolutionize travel through technology, while its core values emphasize innovation, collaboration, and customer focus.

Expedia Group's Core Purpose

Official mission statement

Expedia Group's official mission statement is: 'We believe travel is a force for good. Our purpose is to bring the world within reach.'

• Connecting travelers with a wide range of options and experiences.
• Using technology to simplify and enhance the travel booking process.
• Promoting travel as a means of personal growth and global understanding.

Vision statement

Expedia Group envisions a world where travel is accessible to everyone, offering a seamless and personalized experience. This involves:

• Leveraging data and AI to provide tailored recommendations.
• Creating a connected ecosystem of travel services.
• Driving innovation to meet the evolving needs of travelers.

Company slogan/tagline

Expedia Group uses several taglines to convey its brand promise, including:

• 'Where you book matters' - highlighting the value and benefits of booking through Expedia Group's various platforms.
• 'Go further, together' - emphasizing collaboration and partnership within the travel industry.

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Expedia Group, Inc. (EXPE) How It Works

Expedia Group operates as an online travel company, offering a wide array of travel products and services to consumers and partners globally, connecting travelers with options for accommodations, transportation, and experiences.

Expedia Group's Product/Service Portfolio

Expedia Group's Operational Framework

Expedia Group's operations are structured around a multi-brand strategy, utilizing various platforms to cater to diverse traveler preferences and needs. The company focuses on:

• Technology Infrastructure: Maintaining a robust technology platform that supports its global operations and facilitates bookings.
• Data Analytics: Leveraging data analytics to understand traveler behavior and personalize offerings.
• Partnerships: Establishing and maintaining partnerships with hotels, airlines, and other travel service providers to expand its inventory and reach.
• Customer Service: Providing customer support to assist travelers with bookings and address any issues that arise during their trips.

Expedia Group's Strategic Advantages

Expedia Group maintains a competitive edge through several key strategic advantages:

• Brand Portfolio: A diverse portfolio of well-known brands, including Expedia, Hotels.com, and Vrbo, catering to different segments of the travel market.
• Global Reach: A broad international presence, allowing the company to serve travelers from around the world.
• Scale: The large scale of operations enables Expedia Group to negotiate favorable terms with suppliers.
• Technology Innovation: Continuous investment in technology to improve user experience and operational efficiency.

To gain further insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of Expedia Group, Inc. (EXPE).

Expedia Group, Inc. (EXPE) How It Makes Money

Expedia Group, Inc. primarily makes money by facilitating travel bookings through its various online platforms. These platforms connect travelers with a wide array of services and products, including lodging, airline tickets, car rentals, and other travel-related services.

Expedia Group's Revenue Breakdown

Expedia Group’s revenue is diversified across several key streams. Here’s a look at the approximate breakdown based on the 2024 fiscal year:

Expedia Group's Business Economics

Expedia Group operates on a commission-based model, earning revenue through:

• Commissions: Expedia receives a percentage of each booking made through its platform. The commission rates vary depending on the type of service (e.g., hotel, flight) and the agreement with the service provider.
• Advertising Revenue: Suppliers, such as hotels, pay for enhanced visibility on Expedia's websites.
• Transaction Fees: Fees collected from customers for certain services or modifications to bookings.

The economic fundamentals driving Expedia's business include:

• Network Effect: The value of Expedia’s platform increases as more suppliers and travelers join, creating a strong competitive advantage.
• Scalability: The online nature of the business allows Expedia to scale efficiently, handling a large volume of transactions without significant incremental costs.
• Brand Recognition: Strong brand recognition drives direct traffic to Expedia’s sites, reducing reliance on marketing spend.

Expedia Group's Financial Performance

Key aspects of Expedia Group's financial performance include:

• In 2024, Expedia Group reported total revenue of approximately $12.8 billion.
• Gross bookings for 2024 totaled around $115 billion, reflecting the total value of transactions processed through its platforms.
• The company's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at roughly $2.7 billion in 2024, showcasing its operational profitability.
• Expedia Group continues to invest in technology and marketing to drive growth and maintain its competitive edge. For example, technology expenses were about $1.5 billion in 2024.

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Expedia Group, Inc. (EXPE) Market Position & Future Outlook

Expedia Group, Inc. holds a strong position in the online travel market, leveraging its diverse portfolio of brands to cater to a wide range of traveler needs. The company's future outlook appears positive, driven by strategic initiatives focused on technology innovation, customer loyalty, and expansion in high-growth markets.

Competitive Landscape

Note: Market share percentages are approximate and based on estimates for the 2024 fiscal year.

Opportunities & Challenges

Industry Position

Expedia Group, Inc. maintains a leading position in the online travel industry due to:

• Brand Portfolio: A diverse portfolio of well-known brands catering to different travel segments.
• Global Reach: A strong presence in key markets worldwide, enabling it to serve a global customer base.
• Technological Innovation: Investments in technology to enhance the user experience and improve operational efficiency.
• Partnerships: Strategic partnerships with airlines, hotels, and other travel providers to offer a wide range of travel options.

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