After a dip driven by weak February traffic and economic concerns, OTA stocks rebounded as Q1 2025 earnings beat expectations across the board
May 23, 2025
Despite Expedia’s specific struggles – tied to its heavier U.S. dependence and slower global diversification – the broader OTA sector demonstrated resilient business models and strategic adaptability. Most firms beat EBITDA forecasts, reaffirmed or modestly adjusted guidance, and introduced long-term growth initiatives, calming investor concerns about soft U.S. travel demand and signaling confidence in global diversification and premium travel trends.
Key takeaways
- Earnings Surprise: All major OTAs beat Q1 EBITDA expectations. Most also exceeded revenue forecasts, reversing earlier stock declines driven by weak February traffic data and demand fears.
- Company highlights:
- Airbnb: Maintains a cautiously optimistic outlook. While observing softness in U.S. bookings, it noted strong last-minute booking performance and a projected $1B+ revenue opportunity from new services.
- Booking Holdings: Slightly widened its guidance range at the low end but remains broadly positive.
- TripAdvisor: Held steady on full-year guidance; expected to benefit from the Liberty TripAdvisor transaction and continued growth of Viator.
- Expedia: Reported a 1.5% decline in B2C revenue and lowered full-year bookings guidance by 200bps. However, its EBITDA exceeded expectations due to strong cost management.
- Geographic trends: Weakness in U.S. inbound travel was offset by strong intra-European and Canadian outbound travel, highlighting the importance of geographic diversification in OTA portfolios.
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