Finance
Expedia shares fall after soft US travel demand leads to revenue miss
Published by Global Banking & Finance Review®
Posted on May 9, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 9, 2025
2 min readLast updated: January 23, 2026
Expedia shares dropped 9.2% after missing revenue estimates due to weak US travel demand, highlighting industry slowdown amid economic uncertainty.
(Reuters) -Shares of Expedia fell 9.2% before the bell on Friday, after the online travel-booking platform missed Wall Street estimates for quarterly revenue due to weaker than expected demand in the U.S.
Expedia joins its peers as the travel industry braces for a slowdown ahead of the peak summer season, with economic uncertainty — driven by the ongoing tariff war and elevated interest rates — weighing on consumer spending.
At the end of April, hotel operator Hilton cut its annual forecast for room revenue growth, and vacation rental company Airbnb said earlier this month that the booking window was shortening, signaling consumer uncertainty and caution in travel spending.
"It's all just a bit more pronounced in the case of Expedia with a bigger US presence than peers," said BTIG analyst Jake Fuller.
The Seattle-based company reported revenue of $2.98 billion for the first quarter, below analysts' expectations of $3.01 billion, according to LSEG compiled data.
"It's clear that US travel has downshifted and to the extent trade/macro uncertainty lingers longer, it is less likely this plays out like the summer 2024 'growth scare'," Barclays analysts wrote in a note.
The U.S. travel industry experienced a "growth scare" last summer, as elevated travel costs and uncertainty surrounding the presidential election dampened demand during what is typically a busy season.
Expedia reported an adjusted profit of 40 cents per share for the quarter ended March 31, compared with analysts' estimate of 32 cents.
At least four brokerages cut their price targets on the stock, bringing the median to $201.33, according to data compiled by LSEG.
So far this year, Expedia shares have fallen 9.3%, compared with a 3.7% fall in the S&P 500 index during the same period.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shailesh Kuber)
The article discusses Expedia's revenue miss due to weak US travel demand and its impact on shares.
How did economic factors affect Expedia? Economic uncertainty and elevated interest rates reduced consumer spending.
What was the market reaction? Expedia shares fell 9.2% and analysts adjusted stock price targets.
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