Expedia Cuts Forecast as Travel Demand Weakens

Expedia Group reported weaker-than-expected first-quarter results, with shares dropping sharply due to declines in both domestic and inbound U.S. travel demand. Inbound travel from Canada fell nearly 30%, and overall inbound travel to the U.S. was down 7%. Despite adjusted earnings per share surpassing analyst expectations, both revenue and total bookings missed forecasts, prompting the company to lower its full-year growth outlook for bookings and revenue to 2-4%. Broader industry trends reflect a slowdown in the travel sector amid economic uncertainty, high interest rates, and trade tensions, with peers like Hilton and Airbnb also reporting softer outlooks. Expedia's international B2B business recorded 14% bookings growth, while its U.S.-focused consumer segment saw only 1% growth. Company leadership remains optimistic about long-term travel demand but acknowledges significant short-term headwinds.