Expedia Group Inc. has decreased its growth projections for gross bookings and revenue for 2025 to 2% to 4%, following disappointing January and February domestic and inbound travel demand figures. The company's first-quarter performance reflected a total of $31.5 billion in gross bookings, which fell short of expectations. Notably, a significant drop in inbound bookings from Canada contributed to a broader decline in overall inbound travel. Investor confidence waned as shares dropped 9.2%, signaling concerns about economic uncertainties affecting US travel and discretionary spending. Competitors like Booking Holdings and Airbnb shared similar fates regarding guidance amid these economic concerns.
"Gross bookings and revenue are now expected to grow 2% to 4% in 2025, down from the previously projected 4% to 6% growth in February."
"Demand in the US was softer than expected, a headwind given two-thirds of our business comes from the US," Schenkel said.
"Shares of Expedia fell 9.2% in premarket trading after the results and forecasts were announced, highlighting negative investor sentiment on travel demand."
"Booking and Airbnb topped estimates for the first quarter, but both issued weaker-than-expected second-quarter financial guidance, also blaming economic uncertainties for softer travel demand in the US."
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