Booking Holdings vs Expedia: Revenue, Profit and Business Model
Booking Holdings reported $26.9B of revenue in FY2025 and $5.4B of net income. Expedia reported $14.7B of revenue in FY2025 and $1.3B of net income.
Latest financial snapshot
Booking Holdings
- Latest revenue
- $26.9B (FY2025)
- Net income
- $5.4B
- Net margin
- 20.1%
- Revenue growth
- +10.7% a year, FY2016–FY2025
Expedia
- Latest revenue
- $14.7B (FY2025)
- Net income
- $1.3B
- Net margin
- 8.8%
- Revenue growth
- +5.9% a year, FY2016–FY2025
Financial summary
Booking Holdings
Revenue grew from $10.7 billion in 2016 to $26.9 billion in 2025, apart from the 2020 collapse to $6.8 billion when the pandemic halted travel. Net income was $5.4 billion in 2025, down from $5.9 billion in 2024 despite higher sales, partly because of a $457 million impairment on KAYAK. Free cash flow reached $9.1 billion in 2025, and the company returned $8.2 billion to shareholders that year through buybacks and a dividend first paid in 2024. In Q2 2026 revenue rose 8% to $7.35 billion.
Expedia
Revenue fell to $5.2 billion in 2020 during the pandemic, then recovered to $11.7 billion in 2022, $12.8 billion in 2023, $13.7 billion in 2024 and $14.7 billion in 2025. Net income reached $1.29 billion in 2025. Growth picked up in 2026: Q2 revenue rose 14% to $4.32 billion, gross bookings rose 12% to $33.9 billion, adjusted EBITDA rose 23% to $1.12 billion, and GAAP net income reached $878 million. Expedia also pays a quarterly dividend ($0.48 per share) and buys back stock, repurchasing $200 million of shares in Q2 2026. Its merchant model gives it negative working capital, because travelers pay before suppliers are paid, so cash flow peaks in the first half of the year.
Revenue and profit by year
Booking Holdings
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $26.9B | $5.4B | 20.1% | +13.4% | Source |
| FY2024 | $23.7B | $5.9B | 24.8% | +11.1% | Source |
| FY2023 | $21.4B | $4.3B | 20.1% | +25.0% | Source |
| FY2022 | $17.1B | $3.1B | 17.9% | +56.0% | Source |
| FY2021 | $11B | $1.2B | 10.6% | +61.2% | Source |
| FY2020 | $6.8B | $59M | 0.9% | -54.9% | Source |
| FY2019 | $15.1B | $4.9B | 32.3% | +3.7% | Source |
| FY2018 | $14.5B | $4B | 27.5% | +14.6% | Source |
| FY2017 | $12.7B | $2.3B | 18.5% | +18.0% | Source |
| FY2016 | $10.7B | $2.1B | 19.9% | — | Source |
Expedia
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $14.7B | $1.3B | 8.8% | +7.6% | Source |
| FY2024 | $13.7B | $1.2B | 9.0% | +6.6% | Source |
| FY2023 | $12.8B | $797M | 6.2% | +10.0% | Source |
| FY2022 | $11.7B | $352M | 3.0% | +35.7% | Source |
| FY2021 | $8.6B | $12M | 0.1% | +65.4% | Source |
| FY2020 | $5.2B | -$2.6B | -50.2% | -56.9% | Source |
| FY2019 | $12.1B | $565M | 4.7% | +7.5% | Source |
| FY2018 | $11.2B | $406M | 3.6% | +11.6% | Source |
| FY2017 | $10.1B | $378M | 3.8% | +14.7% | Source |
| FY2016 | $8.8B | $282M | 3.2% | — | Source |
Where the revenue comes from
Booking Holdings
- Merchant Revenue66
$17.76 billion in 2025, up 25.5%. Bookings where Booking.com, Agoda or Priceline takes the traveler's payment and pays the property, plus payment-related fees, flights and car hire.
- Agency Revenue30
$7.97 billion in 2025, down 6.5% as Booking.com moved bookings to its merchant model. Commissions billed to hotels and other partners after the traveler pays them directly.
- Advertising and Other Revenue4
$1.19 billion in 2025, up 11.3%. KAYAK metasearch advertising, OpenTable restaurant software and reservation fees, and advertising sold on Booking.com.
Expedia
- Lodging (hotels and vacation rentals)80
Merchant margins and agency commissions on hotel and Vrbo stays; about 80% of 2025 revenue.
- Advertising and media8
Trivago and Expedia Group Media Solutions ad revenue from hotels, destinations and travel brands.
- Car, cruise, activities and other9
Commissions and fees on rental cars, cruises, insurance and in-destination products.
- Air3
Booking fees and commissions on airline tickets.
Business model and strategy
Booking Holdings
How it makes money
Booking Holdings earns money in three ways. Merchant revenue ($17.76 billion, 66% of FY2025 revenue) comes from bookings where Booking.com, Agoda or Priceline collects the traveler's payment, pays the property and keeps a margin plus payment-related fees. Agency revenue ($7.97 billion, 30%) is commission billed to hotels and other partners after a traveler pays them directly.
Growth strategy
Booking's strategy is the 'Connected Trip': one app and one payment for flights, stays, car hire, attractions and dining, with AI handling planning and disruptions. Flights are the fastest-growing piece, with 68 million airline tickets sold in 2025, up 37%.
Competitive advantage
Booking.com's edge is supply in markets where independent hotels and apartments dominate, especially Europe. Small properties rarely have large marketing budgets, so they list on the platform with the most travelers, and travelers go where the choice is widest. The European Commission put Booking's share of EEA hotel online travel agency services at 60% to 70% in its 2023 Etraveli decision.
Expedia
How it makes money
Expedia makes money in three main ways. Under the merchant model it collects the traveler's payment, keeps a margin or fee, and pays the hotel or other supplier later. Under the agency model the traveler pays the supplier and Expedia earns a commission. It also sells advertising to hotels, destinations and travel brands, and runs trivago, its majority-owned hotel metasearch site.
Growth strategy
Under Ariane Gorin, Expedia is growing B2B distribution with new partners, adding hotel and rental supply, personalizing its consumer apps, building One Key membership for repeat bookings, and using AI both in trip planning and in internal engineering and service work. The single technology platform, finished under Peter Kern, lets each of these ship across all brands at once.
Competitive advantage
Expedia's edge is supply and distribution scale. Its marketplace aggregates millions of hotel and vacation-rental listings plus flights, cars and activities, and that same inventory is resold through thousands of B2B partners, which brings demand that does not depend on Google ads. All major brands now run on one technology platform, so product and AI features can ship once across Expedia, Hotels.com and Vrbo.
Questions about Booking Holdings vs Expedia
Which company has higher revenue — Booking Holdings Inc. or Expedia Group, Inc.?
Booking Holdings Inc. reported $26.9B (FY2025), while Expedia Group, Inc. reported $14.7B (FY2025). By last reported revenue, Booking Holdings Inc. is the larger business, with Expedia Group, Inc. reporting a smaller revenue base.
What is the market cap of Booking Holdings Inc. vs Expedia Group, Inc.?
Booking Holdings Inc.'s market capitalisation stands at $122.4B, while Expedia Group, Inc.'s is $32.5B. Booking Holdings Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Expedia Group, Inc..
Which is more financially efficient — Booking Holdings Inc. or Expedia Group, Inc.?
Booking Holdings Inc. generates $1.11M / employee in revenue per employee, while Expedia Group, Inc. generates $921k / employee. Booking Holdings Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Booking Holdings Inc. and Expedia Group, Inc. make money?
Booking Holdings Inc. and Expedia Group, Inc. generate revenue in fundamentally different ways. Booking Holdings Inc.: Booking Holdings earns money in three ways. Expedia Group, Inc.: Expedia makes money in three main ways.
Which company is valued higher relative to revenue — Booking Holdings Inc. or Expedia Group, Inc.?
On a price-to-sales (P/S) basis, Booking Holdings Inc. trades at 4.5x P/S and Expedia Group, Inc. at 2.2x P/S. Booking Holdings Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Expedia Group, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Booking Holdings Inc. bigger than Expedia Group, Inc.?
By last reported revenue, Booking Holdings Inc. ($26.9B (FY2025)) is the larger company compared to Expedia Group, Inc. ($14.7B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Booking Holdings vs Expedia overview