Expedia Group has overhauled its operating strategy over the past six to nine months, according to Chief Financial Officer Scott Schenkel, who said leadership has “radically changed the direction of the company” by introducing stricter performance metrics and resetting internal expectations. Speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, Schenkel described a shift toward tighter accountability, sharper capital allocation, and a more disciplined approach to growth.
Central to the reset is a more rigorous evaluation of returns. Schenkel said new metrics reflect “a more critical assessment of what return levels are expected,” alongside a daily reassessment of where spending is directed. Rather than committing budgets for extended periods, management is reallocating resources more frequently based on near-term performance indicators. The approach is designed to raise the bar for incremental returns, particularly in marketing and product investments.
The changes coincide with broader cost-cutting efforts across the company. Over the past year, Expedia has reduced its workforce and streamlined certain functions, redirecting part of the savings toward machine learning and AI initiatives. Schenkel pointed to improvements in core operating metrics such as site speed, uptime, and conversion rates, as well as efficiencies in cloud spending and customer service operations. Increased use of automation and AI tools has contributed to higher self-service rates and shorter handling times, while management continues to monitor customer satisfaction levels.
Expedia is also emphasizing supply growth and product depth as competitive advantages. The company reported a 10% expansion in listed properties in the fourth quarter, reflecting efforts to onboard more hotels and lodging partners. Schenkel suggested that the complexity of running a global online travel marketplace is often underestimated, particularly in areas such as inventory management, pricing, loyalty integration, and mid-trip customer support. He argued that these capabilities position Expedia to benefit from emerging AI-driven distribution channels rather than be displaced by them.
While generative AI and “agentic” booking tools are reshaping parts of the travel landscape, Schenkel cautioned that it remains early to draw firm conclusions about traffic shifts or conversion trends. Expedia’s strategy, he said, is to experiment with new channels, diversify sources of demand, and integrate AI more deeply into personalization, marketing optimization, and operational workflows.
For 2026, management plans to continue balancing cost discipline with selective reinvestment, testing the efficient frontier of marketing spend while maintaining margin expansion. The company has also reiterated its commitment to shareholder returns through dividends and ongoing share buybacks, signaling confidence that the operational reset is beginning to translate into stronger financial performance.
