Expedia's Bet on Home Rentals Is Finally Starting to Pay Off

Expedia Group Inc.’s 2015 purchase of HomeAway, meant to help it compete with online home-rental upstart Airbnb Inc., is finally starting to pay off.

After years of updating the company’s aging technology, introducing a guest booking fee and persuading reluctant hosts to handle transactions online, HomeAway’s profit doubled in the second quarter from the same period a year ago. The performance of the unit helped push Expedia’s earnings, excluding some items, to $1.38 a share, the Bellevue, Washington-based company said Thursday in a statement. Analysts had projected 89 cents. Shares jumped about 11 percent in extended trading.