Lodging revenue increased 7% in 2024 primarily driven by an increase in room nights stayed mostly in our hotel business. This indicates successful strategies in attracting and retaining lodging customers.

Advertising and media revenue increased 16% in 2024 due to an increase at Expedia Group Media Solutions, partially offset by a decline in trivago revenue. This reflects a strategic shift in marketing investments and channels.

Expedia Group is undertaking multi-year strategic initiatives to provide greater services and value to travelers, suppliers and business partners. These initiatives aim to improve conversion, innovate more rapidly, achieve better search engine optimization and improve site merchandising and transaction processing capabilities.

In February 2024, Expedia committed to restructuring actions to recalibrate resources, resulting in $80 million in reorganization charges. This indicates a proactive approach to optimizing resource allocation.

The Company's cybersecurity risk management program is based on industry standard information security principles and best practices, specifically the NIST Cybersecurity Framework and the Payment Card Industry Data Security Standard.

The Company's prior Chief Security Officer departed in late 2024 and the CSO function is currently overseen by two co-CSOs on an interim basis until a permanent successor is appointed. This may introduce some instability in the short term.

Expedia Group faces intense competition from online and offline travel companies, travel product suppliers, search engines, and emerging technologies like AI, which could impact market share and profitability.

The travel industry is susceptible to macroeconomic conditions, political instability, public health issues, and geopolitical conflicts, which could adversely affect Expedia Group's business and financial performance.

Factors out of Expedia Group's control could lead to constraints in liquidity and the inability to access capital, which could harm the company's financial position.

Expedia Group faces intense competition from other OTAs and alternative accommodation providers, such as Booking Holdings and Airbnb, which may have more favorable offerings for travelers or suppliers.

Travel suppliers, such as hotels and airlines, may offer products and services on more favorable terms to consumers who transact directly with them, increasing competition for Expedia Group.

Expedia Group faces intense competition from Google and other search engines, which may use their market position to disintermediate online travel agencies through their own offerings.

Cost of revenue decreased $130 million during 2024 compared to 2023, primarily due to lower costs from ongoing initiatives to drive transactional efficiencies. This indicates improved operational efficiency and cost management within the company.

Expedia Group has engaged in a multi-year effort to migrate products, data storage and processing, and key portions of consumer and affiliate sites to new technology platforms to improve conversion and innovate more rapidly.

In February 2024, Expedia committed to restructuring actions to recalibrate resources, resulting in $80 million in reorganization charges. This indicates a proactive approach to optimizing resource allocation.

Expedia has incorporated third-party AI technology in certain products, services and business operations, but faces risks and challenges related to AI algorithms, training methodologies, and competition.

Expedia Group has engaged in a multi-year effort to migrate products, data storage and processing, and key portions of consumer and affiliate sites to new technology platforms to improve conversion and innovate more rapidly.

Expedia depends on sophisticated information technologies and systems in many areas of its business, including technology and systems used for website and mobile applications, reservations, customer service, supplier connectivity, marketing, communications, procurement, payments, tax collection and remittance, fraud detection and administration.

On February 3, 2025, the Board of Directors approved the reinstatement of quarterly common stock dividends, indicating a return of capital to shareholders.

In October 2023, the Executive Committee authorized a program to repurchase up to $5 billion of common stock, demonstrating a commitment to returning value to shareholders.

Capital expenditures, including internal-use software and website development, were $756 million in 2024, indicating continued investment in technology and infrastructure.

Increased focus on environmental, social, and governance responsibilities have and will likely continue to result in additional costs and risks, and may adversely impact our reputation, employee retention, and willingness of customers and partners to do business with us.

We may be subject to criticism by ESG detractors for our ESG initiatives or for any revisions made to these initiatives. We may also be subject to adverse responses by government entities, like anti-ESG laws or punitive legislative actions, or from consumers.

Our businesses may also be negatively impacted by direct and indirect impacts of climate change. Direct impacts may include disruptions to travel and to our operations due to more frequent or severe storms, hurricanes, flooding, rising sea levels, shortages of water, droughts and wildfires.

Our global operations are subject to complex and changing laws and regulations, which may adversely affect our business, financial performance, results of operations or business growth.

Our alternative accommodations business has been, and continues to be, subject to risks relating to regulatory developments that affect the alternative accommodation industry and the ability of companies like us to list those alternative accommodations online.

The market for the services we offer is intensely competitive. We compete with both established and emerging online and traditional providers of travel-related services, including online travel agencies; alternative accommodation providers; wholesalers and tour operators.