Skip to Content

Expedia Group Inc EXPE

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Expedia Sees Low Travel Demand, But Positioning for Recovery in 2021; Shares Slightly Overvalued

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

Near-term demand for narrow-moat Expedia’s travel platform remained hampered by the pandemic, with fourth-quarter bookings declining 67% versus our estimate for a 63% decrease, marking only a slight improvement from the 68% drop seen last quarter. And while the resurgence of COVID-19 cases caused November booking trends to worsen (unquantified), December and January showed some improvement to high-50% and high-40% declines, respectively. Overall, relative strength remained in North America (where pandemic restrictions have been tamer than other regions) and alternative accommodations (as travelers focus on non-urban road trips).

Read Full Analysis

Company Profile

Business Description

Expedia is the world's largest online travel agency by bookings, offering services for lodging (78% of total 2020 sales), air tickets (2%), rental cars, cruises, in-destination, and other (12%), and advertising revenue (8%). Expedia operates a number of branded travel booking sites, including Expedia.com, Hotels.com, Travelocity, Orbitz, Wotif, AirAsia, Egencia, and Vrbo. It has also expanded into travel media with the acquisition of Trivago. Transaction fees for online bookings account for the bulk of sales and profits.

Contact
1111 Expedia Group Way W
Seattle, WA, 98119
T +1 206 481-7200
Sector Consumer Cyclical
Industry Travel Services
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 19,100

Related