Expedia Group Reports Decline in U.S. Travel Demand
May 8, 2025
Expedia Group has announced a noticeable decline in travel demand to the United States during the first quarter of 2025. The company disclosed that 67% of its business stems from the U.S., where inbound travel bookings dropped by 7%. This decrease reflects changing travel preferences, as many travelers, particularly from Europe, are choosing destinations in Latin America instead.
During an investor call on Thursday, CEO Ariane Gorin highlighted the ongoing economic uncertainty and its impact on consumer sentiment. Gorin stated, “U.S. demand was soft, driven by declining consumer sentiment, and we saw pressure on key inbound U.S. corridors.”
Notably, bookings from Canada fell sharply, plummeting by 30%. This downturn signals a shift in travel patterns, suggesting that nearby international travelers may be seeking alternatives outside the U.S.
In response to these challenges, Expedia is adjusting its full-year growth expectations. The company anticipates lower gross bookings and revenue growth due to weak demand. This shift in forecast indicates a cautious approach towards future business planning as it navigates through these uncertain economic times.
The Hotels.com brand, a subsidiary of Expedia, faced particular difficulties, losing market share due to recent technical migration issues. The company has initiated efforts to rebuild its presence in the market, aiming to recover from these setbacks.
As the travel landscape continues to evolve, Expedia Group’s experience may reflect broader trends affecting the industry. The challenges faced by major travel platforms like Expedia could indicate shifts in consumer behavior and preferences, especially in a changing economic environment.
Travel trends will continue to be monitored closely, providing insights into how companies adapt to market demands in the coming months.
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