Expedia reports drop in US travel demand in Q1

US: Expedia Group has reported a slowdown in US travel demand during the first quarter of 2025, with bookings from Canada to the US falling by nearly 30% year on year. The company cited weaker consumer sentiment and reduced inbound travel as key challenges.

Speaking on the company’s earnings call, Expedia Group chief executive Ariane Gorin said the business had felt pressure on major US travel corridors, with overall inbound bookings down 7 per cent.

With two-thirds of the global travel technology company tied to US point-of-sale transactions, the slowdown has prompted the company to revise its full-year revenue and bookings growth forecast to between 2 and 4 per cent.

Gorin also noted a shift in travel patterns, with European travellers opting for destinations in Latin America rather than the US.

Despite weaker consumer demand, Expedia Group’s B2B division performed strongly, posting a 14 per cent increase in bookings, largely driven by international markets, particularly in the Asia Pacific region.

For short-term rental operators, the results highlight the continued importance of diversifying guest sources and adapting to shifting travel trends, especially for those reliant on inbound US demand.

Key takeaways: 

• Expedia Group reported a sharp decline in inbound US travel in Q1 2025, with Canadian bookings down 30% and overall inbound demand falling 7%.
• The slowdown highlights the need for short-term rental operators to diversify guest sources and adapt to shifting travel patterns, particularly in key US markets.