Expedia sinks as soft US travel demand weighs on the online travel giant’s Q1 results
Travel stocks are under pressure as more would-be vacationers stay put.
Expedia shares were down about 7% Monday afternoon after the travel booking company missed Q1 expectations, hit by slowing US booking demand. Adjusted earnings per share came in at $0.40, slightly ahead of estimates — but a diluted loss of $1.56 per share was far steeper than Wall Street’s expected $0.46 loss.
Revenue also came up short, landing at $2.98 billion versus the $3.01 billion forecast. The softness came from weaker bookings in the US across Expedia’s portfolio, which includes Hotels.com and vacation rental platform VRBO.
Expedia’s stumble adds to growing signs of a travel cooldown. Hotel giant Hilton Worldwide recently trimmed its full-year outlook for room revenue, and Airbnb reported softer results and said travelers are booking closer to departure — a signal that consumers may be getting pickier with their plans.
Meanwhile, with domestic demand easing, airfare prices are dropping. Airlines are slashing off-peak fares and cutting extra capacity for the back half of the year. Expedia shares are now down about 16% year to date.
