Archive · 2 Jun 2025
Expedia Lowers Outlook Due to US Travel Demand Dip
Expedia, a big travel company, is expecting slower growth than they thought because fewer people are traveling in the US.
They were hoping for more bookings, but things didn't go as planned.
People from Canada are also traveling less to the US, which is hurting.
Though bookings were down, Expedia still made some money, more than they had predicted, because they are running their business more efficiently.
Overall, they're adjusting their plans for the future to account for the current travel trends.
Other travel companies like Booking and Airbnb are facing similar challenges.
Expedia lowered its 2025 growth forecast for gross bookings and revenue.
The company cited softer-than-expected US travel demand as a major factor.
Inbound bookings from Canada declined, impacting overall US travel.
Expedia's Q1 gross bookings missed analyst estimates.
Adjusted earnings per share in Q1 exceeded expectations.
- Who
- Expedia Group Inc.
- What
- Cut its full-year outlook for gross bookings and revenue.
- When
- At the start of the year
- Where
- United States
- Why
- Due to weaker-than-expected domestic and inbound travel demand.
Expedia's Challenges
Expedia's Successes
Performance of Expedia
Expedia's Challenges
Expedia's full-year outlook was reduced due to faltering US travel demand, affecting its revenue and bookings. Rivals such as Booking Holdings and Airbnb, generating revenue abroad, have shown better performance in comparison.
Expedia's Successes
The company's profitability was a bright spot in the report, exceeding earning estimates, due to job cuts and AI.
- Q1 Gross Bookings
- $31.5 billion
- Nights Booked in Q1
- 107.7 million
- Q1 Adjusted Earnings Per Share
- 40 cents
- Revised 2025 Gross Bookings/Revenue Growth
- 2% to 4%
- Expedia Stock Decline (Extended Trading)
- 7.7%
- US Business Portion of Total
- Approximately two-thirds