Published by Global Banking & Finance Review®
Posted on May 9, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleExpedia's quarterly revenue missed estimates due to weak US travel demand, causing shares to drop. International travel growth partially offset the slowdown.
(Reuters) -Online travel platform Expedia missed Wall Street estimates for quarterly revenue on Thursday, due to weaker than expected demand in the U.S., as the industry braces for a slowdown amid slower consumer spending.
Shares of the company were down close to 5% in after-market trading. They have fallen more than 9% since the start of 2025.
Demand in the U.S. softened as Americans grew wary about discretionary spending, especially on big-ticket expenses such as travel, due to the economic uncertainty caused by an erratic trade policy.
Strength in international travel, especially in Asia-Pacific and Europe, has helped travel companies offset some slowing travel in the U.S.
At the end of April, hotel operator Hilton cut its annual forecast for room revenue growth, and vacation rental company Airbnb said this month that the booking window was shortening, signaling consumer uncertainty and caution in travel spending.
Expedia reported revenue of $2.98 billion for the first quarter, below analysts' expectations of $3.01 billion.
The Seattle-based company reported an adjusted profit of 40 cents per share for the quarter ended March 31, compared with analysts' estimate of 32 cents per share, according to LSEG compiled data.
Total gross bookings for the first quarter came in at $31.45 billion, up 4% from last year. It posted quarterly booked room nights of 107.7 million, 6% higher than last year.
(Reporting by Aishwarya Jain and Abhinav Parmar in Bengaluru; Editing by Alan Barona)
Expedia missed Wall Street estimates for quarterly revenue due to weaker than expected demand in the U.S., as Americans became wary about discretionary spending amid economic uncertainty.
Shares of Expedia were down close to 5% in after-market trading and have fallen more than 9% since the start of 2025.
Expedia reported revenue of $2.98 billion for the first quarter, which was below analysts' expectations of $3.01 billion.
Demand in the U.S. has softened as Americans are cautious about spending on big-ticket expenses like travel due to economic uncertainty and erratic trade policies.
Strength in international travel, particularly in Asia-Pacific and Europe, has helped offset some of the slowing travel demand in the U.S.
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