Expedia posts disappointing Q1 results amid slowing U.S. travel demand

Economic uncertainty and shrinking consumer confidence weigh on bookings ahead of peak summer season, prompting industry-wide caution

Expedia shares dropped 7.5% after the company missed quarterly revenue estimates, signaling a broader softness in U.S. travel demand ahead of the peak summer season. The downturn reflects growing economic uncertainty, ongoing trade tensions, and high interest rates—all of which are pressuring consumer travel spending. Expedia's heavy U.S. exposure made the revenue hit more pronounced than for some peers, adding to concerns across the travel industry.

Key takeaways

• Revenue miss: Expedia reported Q1 revenue of $2.98 billion, missing analyst expectations of $3.01 billion.
• Room nights & regional growth: Booked room nights increased 6%, with low growth in the U.S., mid-single digits in Europe, and mid-teens internationally.
• B2B and ad momentum: B2B bookings grew 14%, outperforming the market, while advertising revenue rose 20%.
• Economic headwinds: Tariff tensions and elevated interest rates are dampening consumer confidence, with analysts warning this may not rebound as it did after the 2024 "growth scare."
• Q2 outlook: Forecasts 2%–4% growth in bookings, 3%–5% in revenue, and margin expansion of 75–100 bps.
• Full-year guidance: Revised to 2%–4% growth in bookings and revenue, with continued margin expansion expected.

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