Expedia signals travel slump as US domestic trips slow
The company's Q2 revenue missed analysts’ estimates, signaling a potential slowdown in travel demand during the busy summer season
Expedia's lodging gross bookings and revenue in Q2 were both at record levels for any second quarter and beat analysts’ estimates, driven by the hotel business. But revenue from air travel, as well as advertising and media services, came in lower than expected.
Key takeaways
- International travel has surged this year, as Americans take advantage of a stronger dollar, while domestic trips in the US have generally slowed;
- “Travelers worldwide continue to favor shorter stays in urban locations versus longer trips in sun and ski destinations,” Chief Executive Officer Peter Kern;
- Pricing on hotel and vacation rental average daily rates are “holding up” year-over-year, he said. “International cross-border airfares are stable. US domestic airfares have seen some declines as capacity increases.”
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