Expedia cites lower demand for US travel for weaker-than-expected revenue

Expedia Group said Friday that reduced question request successful the United States led to its weaker-than-expected gross successful the archetypal quarter.

Expedia, which owns the lodging preservation platforms Hotels.com and VRBO arsenic good arsenic an eponymous online question agency, was the latest American institution to study slowing concern with some international visitors and home travelers.

Airbnb and Hilton noted the aforesaid trends past week successful their quarterly net reports. Most large U.S. airlines pulled their full-year fiscal guidance successful April and said they planned to trim scheduled flights, citing an ebb successful system passengers booking leisure trips.

The U.S. Travel Association has said that economical uncertainty and anxiousness implicit President Donald Trump's tariffs whitethorn explicate the pullback. In April, Americans’ confidence successful the economy slumped for a 5th consecutive period to the lowest level since the onset of the COVID-19 pandemic.

Abroad, choler astir the tariffs arsenic good arsenic interest astir tourist detentions astatine the U.S. border person made citizens of immoderate different countries little funny successful traveling to the U.S., tourism manufacture experts say.

The U.S. authorities said past period that 7.1 cardinal visitors entered the U.S. from overseas this twelvemonth arsenic of the extremity of March, 3.3% less than during the archetypal 3 months of 2024.

The numbers did not see onshore crossings from Mexico oregon question from Canada, wherever citizens person expressed indignation implicit Trump's remarks astir making their state the 51st state. Both U.S. and Canadian authorities information person shown steep declines successful borderline crossings from Canada.

Expedia Chief Financial Officer Scott Schenkel said the nett worth of the question exertion company's bookings into the U.S. fell 7% successful the January-March period, but bookings to the U.S. from Canada were down astir 30%.

In a league telephone with investors Friday, Expedia CEO Ariane Gorin said U.S. request was adjacent softer successful April than March.

“We’re inactive continuing to spot unit connected question into the U.S., but we’ve besides seen immoderate rebalancing,” Gorin said. “Europeans are traveling little to the U.S., but much to Latin America.”

Seattle-based Expedia said its gross roseate 3% to $2.99 cardinal for the quarter. That was little than the $3 cardinal Wall Street was expecting, according to analysts polled by FactSet.

Expedia shares were down than 7% successful mid-day trading Friday.

Airbnb said past week that overseas question to the U.S. makes up lone 2% to 3% of its business. But wrong that category, it's seeing declining involvement successful the U.S. arsenic a destination.

“I deliberation Canada is the astir evident example, wherever we spot Canadians are traveling astatine a overmuch little complaint to the U.S. but they’re traveling much domestically, they are traveling to Mexico, they are going to Brazil, they’re going to France, they’re going to Japan,” Airbnb Chief Financial Officer Ellie Mertz said successful a league telephone with investors.

Meanwhile, Hilton lowered its full-year forecast for gross per disposable room, a cardinal manufacture metric. The institution said successful precocious April that it present expects maturation of 0% to 2% for the year, down from 2% to 3%.

Hilton President and CEO Christopher Nassetta told banal analysts the institution saw planetary question to its U.S. hotels autumn passim the archetypal quarter, peculiarly from Canada and Mexico.

But Nassetta said helium remained optimistic for the 2nd fractional of this year.

“My ain content is you volition spot immoderate of — if not a batch of — that uncertainty wane implicit the adjacent mates of quarters, and that volition let the underlying spot of the system to radiance done again,” helium said.

Copyright 2025 The Associated Press. All rights reserved. This worldly whitethorn not beryllium published, broadcast, rewritten oregon redistributed without permission.