Skip to content
Sports — Pandemic — Ai — Airlines — Expedia — Tech — Vrbo — Japan — Lifestyle — National — Business — Travel — Pullback — Technology — Covid-19 — Tariffs — Quarterly

U.S. travel demand reported as weaker, causing lower-than-anticipated revenue for Expedia.

Decreased American travel demand causes Expedia Group to report lower-than-anticipated Q1 revenue, with the travel company - owner of Hotels.com, VRBO, and Expedia online travel agency - joining the list of U.S. firms experiencing a dip in business due to a slowdown.

,   and  Administrator
3 min read
U.S. travel demand decline impacts Expedia Group's Q1 revenue, with reduced income attributed to...
U.S. travel demand decline impacts Expedia Group's Q1 revenue, with reduced income attributed to slowing business for platforms like Hotels.com, VRBO, and their namesake online travel agency, joining the growing list of American companies experiencing a downturn.

U.S. travel demand reported as weaker, causing lower-than-anticipated revenue for Expedia.

Revised Article:

US travel demand has taken a dive, leaving companies like Expedia in the lurch. On a dismal Friday, Expedia Group owns up, confessing that the drop in domestic travel demand was the culprit behind their disappointing Q1 revenue.

The travel tech giant, which oversees lodging platforms such as Hotels.com and VRBO, as well as Expedia itself, joined the chorus of American firms grappling with a sluggish business climate. As both global gallivants and local escapades dwindle, it appears the travel industry is stuck in a holding pattern.

Airbnb and Hilton have already sounded the same alarm last week, revealing the similar trend in their quarterly reports. Mainstream US airlines have also reeled in their plans, scaling down their scheduled flights as economy passengers shun leisure getaways.

The US Travel Association offers a possible explanation. With economic anxiety swirling around Donald Trump's tariffs, it seems Americans aren't feeling too upbeat about hitting the road. In April, economic confidence plummeted to a raw nerve-wracking low not seen since the onset of the COVID-19 pandemic.

Abroad, the tariffs have fueled outrage, while border detentions have left some foreigners cold to the idea of a US vacation. Tourism insiders suggest that's led to a dip in interest from certain countries.

At the end of March, a total of 7.1 million foreigners graced US soil for the year, according to official numbers – that's 3.3% fewer than in the same period of 2024. However, land crossings from Mexico and travel from Canada weren't included in the figures, nor were Trump's remarks about making Canada the 51st state accounted for. Both US and Canadian government stats have shown a steep decline in border crossings from Canada.

Scott Schenkel, Expedia's CFO, noted a 7% reduction in the net value of bookings into the US for Q1. On the other hand, bookings to the US from Canadian travelers plummeted almost 30%.

In a call with investors, Expedia CEO Ariane Gorin admitted that US demand in April took an even harder hit compared to March. "We're still facing pressure on travel to the US, but there's been a slight rebalancing," Gorin shared. "Europeans are traveling less to the US, but more to Latin America."

Seattle-based Expedia announced a 3% increase in revenue during Q1, reaching $2.99 billion. This figure, however, fell short of the $3 billion foreseen by analysts polled by FactSet. Shares of the company sank more than 7% in mid-day trading on that somber Friday.

Airbnb revealed that foreign travel to the US forms only 2% to 3% of their business. Yet, they've spotted a downturn in interest in the US as a destination. Airbnb CFO Ellie Mertz explained, "Canada is the most telling example, where we see a significant dip in travel to the US, but more domestic travel, travel to Mexico, Brazil, France, Japan, and so on."

Meanwhile, Hilton lowered its full-year forecast for revenue per available room, a key industry metric. Hilton President and CEO Christopher Nassetta said international travel to the US deserted their hotels throughout Q1, with Canada and Mexico bearing the brunt. But he remained hopeful for the second half of the year, predicting that the uncertainty would dissipate, allowing the economy's strengths to shine once more.

  1. Expedia, a national travel tech giant managing platforms like Hotels.com and VRBO, has experienced a setback due to the dwindling demand in domestic travel.
  2. The pullback in global and local travel has placed companies like Expedia in a challenging business climate.
  3. Amidst the sluggish travel industry, Japanese travelers may find themselves less inclined to visit the US due to tariffs and the pandemic.
  4. As the pandemic rages on and economic uncertainties linger, the travel lifestyle has been affected, with countries like Japan potentially reconsidering their travel plans.
  5. The US travel industry has been impacted by the ongoing COVID-19 pandemic and the related economic anxiety, leading to a decrease in travel from certain countries, such as Japan.
  6. In response to the drop in travel demand, US businesses like Expedia have had to revise their quarterly projections and growth strategies.
  7. National airlines have also made adjustments, such as scaling down their scheduled flights, to account for the decrease in leisure travel.
  8. AI-powered platforms like Expedia and online travel platforms such as Expedia and Vrbo may need to reevaluate their tech strategies to better address this new, more cautious travel landscape.
  9. As the second half of the year approaches, American companies such as Expedia are hopeful that the pandemic and related travel uncertainties will subside, leading to renewed business and a recovery in the travel industry.

Read also:

    Related

    Latest