v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Our reportable segments are based upon our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer and President, who is our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations.
We operate our business and present our results through two business segments, (i) Travel Solutions, our global travel solutions for travel suppliers and travel buyers, including a broad portfolio of software technology products and solutions for airlines, and (ii) Hospitality Solutions, an extensive suite of software solutions for hoteliers.
Our CODM utilizes Segment Adjusted EBITDA, as the measure of profitability to evaluate performance of our segments and allocate resources. Segment Adjusted EBITDA is used by our CODM to monitor the financial performance of each segment by comparing variances to plan and recent forecasts on a regular basis. Our CODM uses the annual budget and multi-year outlook process to allocate resources between segments based on return on investment and monitors Segment Adjusted EBITDA performance against actual performance to make necessary adjustments to this allocation. Our use of Segment Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition to Segment Adjusted EBITDA, certain significant expenses are provided to our CODM. These significant expenses include Cost of revenue, excluding technology costs, Technology costs, and Selling, general and administrative expenses.
We define Adjusted EBITDA as loss from continuing operations adjusted for depreciation and amortization of property and equipment, amortization of capitalized implementation costs, acquisition-related amortization, restructuring and other costs, interest expense, net, other, net, loss on extinguishment of debt, acquisition-related costs, indirect tax matters, stock-based compensation and the (benefit) provision for income taxes.
Our CODM does not review total assets by segment as operating evaluations and resource allocation decisions are not made on the basis of total assets by segment.
Certain costs associated with our technology organization are allocated to the segments based on the segments' usage of resources. Benefit expenses, facility and lease costs and associated depreciation expense are allocated to the segments based on headcount. Unallocated corporate costs include certain shared expenses such as accounting, finance, human resources, legal, corporate systems, amortization of acquired intangible assets, impairment and related charges, stock-based compensation, restructuring charges (in applicable periods), legal reserves and other items not identifiable with one of our segments.
We account for significant intersegment transactions as if the transactions were with third parties, that is, at estimated current market prices. The majority of the intersegment revenues and cost of revenues are fees charged by Travel Solutions to Hospitality Solutions for hotel stays booked through our global distribution system ("GDS").
Segment information for the three months ended March 31, 2025 and 2024 is as follows (in thousands):
Three Months Ended March 31, 2025
Travel SolutionsHospitality
Solutions		EliminationsTotal
Revenue:
Revenue from external customers$691,408 $85,209 $— $776,617 
Intersegment revenue10,718 — (10,718)— 
Total revenue702,126 85,209 (10,718)776,617 
Less(1):
Segment cost of revenue, excluding technology costs(2)
$301,572 $37,539 $(10,718)$328,393 
Segment technology costs(3)
154,590 24,691 — 179,281 
Segment selling, general and administrative(4)
62,200 11,523 — 73,723 
Other segment adjustments(5)
(665)— — (665)
Segment adjusted EBITDA$184,429 $11,456 $— $195,885 
Three Months Ended March 31, 2024
Travel SolutionsHospitality
Solutions		EliminationsTotal
Revenue:
Revenue from external customers$704,067 $78,819 $— $782,886 
Intersegment revenue9,566 — (9,566)— 
Total revenue713,633 78,819 (9,566)782,886 
Less(1):
Segment cost of revenue, excluding technology costs(2)
$288,850 $36,559 $(9,566)$315,843 
Segment technology costs(3)
176,920 23,227 — 200,147 
Segment selling, general and administrative(4)
60,514 10,762 — 71,276 
Other segment adjustments(5)
(960)— — (960)
Segment adjusted EBITDA$188,309 $8,271 $— $196,580 

The following table sets forth the reconciliation of Total segment adjusted EBITDA to Loss from continuing operations before income taxes in our consolidated statements of operations (in thousands): 
 Three Months Ended March 31,
 20252024
Total segment adjusted EBITDA$195,885 $196,580 
Unallocated amounts and adjustments:
Corporate expenses(6)
(62,036)(63,376)
Depreciation and amortization(29,786)(34,159)
Interest expense, net(129,353)(124,747)
Loss on extinguishment of debt— (37,994)
Other, net(7)
3,776 (4,477)
Loss from continuing operations before income taxes$(21,514)$(68,173)
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(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the Hospitality Solutions column.
(2)Segment cost of revenue, excluding technology costs, incurred by Travel Solutions and Hospitality Solutions consists primarily of costs associated with the delivery and distribution of our products and services and includes employee-related costs for our delivery, customer operations and call center teams as well as allocated overhead such as facilities and other support costs. Cost of revenue, excluding technology costs, for Travel Solutions also includes incentive consideration expense representing payments or other consideration to travel agencies for reservations made on our GDS which accrue on a monthly basis and Cost of revenue, excluding technology costs, also includes amortization of upfront incentive consideration representing upfront payments or other consideration provided to travel agencies for reservations made on our GDS which are capitalized and amortized over the expected life of the contract.
(3)Segment technology costs incurred by Travel Solutions and Hospitality Solutions consist of expenses related to third-party providers and employee-related costs to operate, maintain and enhance our technology operations including hosting, third-party software, and other associated costs.
(4)Segment selling, general and administrative expenses consist of professional service fees, provision for expected credit losses and personnel-related expenses for employees engaged in sales, sales support, account management and administrative support.
(5)Other segment adjustments include income from equity method investments recognized by Travel Solutions.
(6)Corporate expenses include certain shared expenses such as accounting, finance, human resources, legal, corporate systems, impairment and related charges, stock-based compensation, restructuring charges (in applicable periods), legal reserves and other items not identifiable with one of our segments.
(7)Other, net includes a gain on the sale of assets of $5 million recognized in the current year period and a fair value loss from our investments in securities of $3 million recognized in the prior year period. In addition, all periods presented include foreign exchange gains and losses related to the remeasurement of foreign currency denominated balances included in our consolidated balance sheets into the relevant functional currency.