Expedia Group saw total gross bookings and total revenue increase significantly in the first quarter of 2022, according to the online travel giant’s latest earnings report.
Gross bookings for the three months ending March 31, 2022 were $24.4 billion, up 58% from $15.4 billion in the first quarter of 2021 and down 17% from in the first quarter of 2019, the smallest quarterly decline since the start of the pandemic.
Revenue for the period was $2.2 billion, an 81% jump from $1.2 billion in the first quarter of 2021.
Net loss, meanwhile, was $122 million and adjusted EBITDA net loss was $74 million. Adjusted EBITDA for the first quarter of 2022 was $173 million, roughly flat compared to the first quarter of 2019, despite a decline in revenue of 14%.
Trends Bookings for accommodation, air travel and other travel products all improved sequentially from Q4 2021, reports Expedia Group, which saw a greater impact from the Omicron variant.
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As a percentage of total revenue in Q1 2022, accommodation made up 72%, advertising and media made up 7%, and air 3%, with all other revenue making up the remaining 18%.
According to Expedia Group, the increase in accommodation revenue in the first quarter of 2022 compared to the same period in 2021 is due to a significant increase in the number of nights in hotels and alternative accommodations as well as the average daily rate.
Airline revenue increased due to an increase in tickets sold as air travel demand improved from the first quarter of 2021.
Speaking on a call with analysts, Expedia Group Vice Chairman and CEO Peter Kern said that despite concerns over COVID and the war in Ukraine, he is “satisfied with the quarter”. We continue to see strong demand coming back, continue to see efficiencies with the business.
“We entered the quarter with Omicron imminent and expected this to have an impact early in the quarter, which it did. We are very pleased that demand has returned after Omicron and has met our expectations. , i.e. it was the shortest wave.
Sales and marketing expenses for the first quarter of 2022 were $1.3 billion, a jump of 102% from $664 million during the same period in 2021.
Kern says Expedia Group has invested in the recovery with the goal of boosting long-term customer engagement. “We’ve found the right mix of marketing,” he says, “with an eye on lifetime value and we’ll continue to do so,” pointing to Vrbo as a bright spot.
Looking ahead, “the real work this year is on the delivery, on the branding work that we’ve done,” Kern says. “We have a lot of new product innovations coming this year and are doing a ton of work on the backend platform. It will have some impact on this year, but the real impact is longer term.