Expedia has benefited from increased travel to the Middle East and Europe, but expects demand to decline due to rising costs and inflation
Aug 12, 2024
Shares of Expedia soared more than 8% on Friday after the online travel company beat quarterly profit expectations, much to the delight of investors. However, despite the positive performance, the company echoed the concerns of other travel companies about a potential slowdown in demand in the near future.
Key takeaways
- Domestic travel in the United States has faced challenges since the beginning of the year as more Americans are reluctant to spend on travel amid economic uncertainty;
- In response to this slowdown, Expedia lowered its FY24 bookings growth guidance to 4% year-over-year, down from its previous forecast of mid- to high-single-digit growth, marking the third consecutive downward revision;
- Competitors such as Booking and Airbnb have also noted that consumers are delaying vacation bookings and becoming more cautious with their spending.
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