Shares of online travel company Expedia Group Inc. (NASDAQ: EXPE) surged by 17.16% in the pre-market session on Friday, driven by the company's impressive fourth-quarter results and an optimistic outlook for the travel industry.

Expedia reported better-than-expected fourth-quarter earnings, with revenue of $3.18 billion, exceeding analysts' estimates of $3.07 billion. The company's adjusted earnings per share (EPS) of $2.39 also surpassed the consensus estimate of $2.04, fueled by robust travel demand, particularly in international markets.

The Seattle-based company's strong performance was underpinned by a 12% year-over-year increase in booked room nights, reaching 86.4 million for the quarter. Gross bookings grew by an impressive 13% to $24.4 billion, reflecting the strong demand for travel services. Notably, Expedia's business-to-business (B2B) segment accelerated by 24%, highlighting the company's growing presence in the corporate travel market.

Ariane Gorin, CEO of Expedia Group, highlighted the company's execution and the better-than-expected travel demand, stating, "Our fourth-quarter results exceeded our expectations and reflect continued strong execution and better-than-expected travel demand. All three of our core consumer brands achieved bookings growth, and we further accelerated growth in our B2B business."

In addition to the strong financial performance, Expedia announced the reinstatement of its quarterly cash dividend at $0.40 per share, starting in March 2025. The move signaled the company's confidence in its financial position and future growth prospects.