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

Published: Friday, May 9, 2025 at 7:33 pm

**Expedia Reports Weak US Travel Demand, Misses Revenue Expectations**

Expedia Group, the travel giant behind Hotels.com, VRBO, and its namesake online travel agency, is the latest company to report a slowdown in US travel demand. The company's revenue for the first quarter fell short of Wall Street expectations, rising only 3% to $2.99 billion, below the anticipated $3 billion. This underperformance is largely attributed to a decline in both domestic and international travel to the United States.

Several factors are contributing to this trend. Economic uncertainty and anxieties surrounding potential tariffs, particularly those associated with President Donald Trump, are cited as key drivers. Consumer confidence in the US economy has slumped for the fifth consecutive month, reaching its lowest point since the start of the COVID-19 pandemic.

International travel is also suffering. Experts suggest that anger over tariffs and concerns about tourist detentions at the US border are deterring visitors. Data from the US government shows a 3.3% decrease in overseas visitors during the first three months of the year. Bookings into the US from Canada, in particular, have plummeted, with Expedia reporting a nearly 30% drop.

Expedia's CEO, Ariane Gorin, noted that the demand for US travel softened further in April. Other major players in the travel industry, including Airbnb and Hilton, have also reported similar trends. Hilton lowered its full-year forecast for revenue per available room, while Airbnb observed a decline in US interest among its international customers.

While some executives, like Hilton's CEO Christopher Nassetta, remain optimistic about a rebound in the second half of the year, the current data paints a challenging picture for the US travel industry.

BNN's Perspective: The reported decline in US travel demand is concerning, reflecting a complex interplay of economic and political factors. While the situation warrants attention, it's important to avoid overreaction. The travel industry is cyclical, and a recovery is possible. However, addressing the underlying issues of economic uncertainty and international relations is crucial for restoring confidence and boosting travel to the US.

Keywords: Expedia, US travel, travel demand, revenue, Hotels.com, VRBO, Airbnb, Hilton, tariffs, economic uncertainty, international travel, Canada, bookings, tourism, travel industry, Donald Trump, consumer confidence, travel slowdown, travel forecast, travel trends

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