The travel industry has a long road to recovery, as Americans stay local while corporations curtail business trips — and Expedia's (EXPE) latest financial report reinforces the reality that a return to normalcy isn't in clear view.

Both revenue and gross bookings in the fourth quarter of 2020 were down 67% year-over-year. Lodging revenue decreased 58% on a 61% decrease in room nights stayed, partly offset by a 6% increase in revenue per room night. But among Expedia's portfolio, which includes Hotels.com, Orbitz, Travelocity, Hotwire, CheapTickets, CarRentals.com, and VacationRentals.com, among others, short-term home rental platform Vrbo has been the lone bright spot.

"I would say it would probably be just about the only part of the company that's growing," Expedia CEO Peter Kern told Yahoo Finance Live on Friday. "You know, growing in travel in this environment is pretty tough to do. And actually Vrbo has been quite strong."

'They want to be in an enclosed space they can control'

Revenue per room night was buoyed by an increase in the percentage of room nights contributed by Vrbo, which has a higher revenue per room night than the rest of Expedia's lodging business as well as transaction revenue related to Vrbo's transition to merchant of record. Like competitor Airbnb (ABNB), Vrbo is likely benefiting from travelers' reluctance to breathe the same air as others in a hotel amid the coronavirus.

"We have grown share in all of our strongest markets. And obviously, it's because it's a use case that people really like. You know, families are trying to get away. People are trying to get away. They want to be in an enclosed space that they can control," Kern said.

Expedia, the biggest player in international and big city travel, relies heavily on families looking to book hotels, flights and car rentals abroad. And while Vrbo has boosted Expedia's portfolio, it certainly doesn't make up for the lack of demand in its core business. And Vrbo is still dwarfed by Airbnb when it comes to inventory and name recognition.

"As we look ahead to this year, it's clear that booking trends for the summer and further out are very strong in the home rental business. But we cover...everything. And I think like most travel companies, there's some bright spots and there's some tough spots," Kern said. Still, he added, "I think it's likely that everything rebalances as we come out and more people are traveling again."

'Another weapon in our arsenal'

Vrbo was founded in 1995 and acquired by HomeAway in 2006, both of which Expedia Group bought for $3.9 billion in December 2015.