Expedia First-Quarter Bookings Miss as Travel Demand Softens

(Bloomberg) — Expedia Group Inc. posted weaker-than-expected gross bookings for the first three months of 2025, a sign that domestic travel demand began to soften even before US tariffs shook global markets.

Gross bookings across its platforms for hotel, flight, car rental and vacation home reservations totaled $31.5 billion, the firm said in a statement Thursday, missing the average analyst estimate of $31.8 billion. Customers booked a total of 107.7 million nights through Expedia’s travel websites, which include Expedia.com, Hotels.com and the short-term rental marketplace Vrbo, also below analysts’ projections.

“We posted first quarter bookings and revenue within our guidance range” of 4% to 6% “despite weaker than expected demand in the US,” said Chief Executive Officer Ariane Gorin in the statement.

Shares of Expedia fell 5.3% in extended trading after the results were announced.

Expedia generates nearly two-thirds of its revenue in the US, making it a strong bellwether for domestic travel demand and consumer discretionary spending more broadly.

Online travel peers Booking Holdings Inc. and Airbnb Inc. topped estimates for the first quarter, but both issued weaker-than-expected second-quarter financial guidance, blaming economic uncertainties for softer travel demand in the US. 

Expedia will hold a call with investors at 4:30 p.m. New York time, where Wall Street will be listening for an outlook on the current period.

Average analyst projections point to decelerated growth of 6.3% in nights booked for the second quarter, according to Bloomberg-compiled data. 

Growth for the full year is expected to slow further, the company said in February, when it provided 2025 guidance of 4% to 6% gross bookings gains.

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