**Expedia Reports Lower-Than-Expected Gross Bookings in Q1 2025**
Expedia Group Inc. has reported gross bookings for the first quarter of 2025 that fell short of expectations, indicating a decline in domestic travel demand prior to the impact of US tariffs on global markets. The company announced that total gross bookings across its platforms, which include hotel, flight, car rental, and vacation home reservations, reached $31.5 billion. This figure was below the average analyst estimate of $31.8 billion. Additionally, customers booked 107.7 million nights through Expedia’s travel websites, including Expedia.com, Hotels.com, and Vrbo, which also did not meet analysts’ projections.
CEO Ariane Gorin stated, “We posted first quarter bookings and revenue within our guidance range of 4% to 6% despite weaker than expected demand in the US.” Following the announcement, Expedia’s shares dropped by 5.3% in after-hours trading. With nearly two-thirds of its revenue generated in the US, Expedia serves as a significant indicator of domestic travel demand and consumer discretionary spending.
While competitors Booking Holdings Inc. and Airbnb Inc. exceeded first-quarter estimates, both companies provided weaker-than-expected financial guidance for the second quarter, attributing the decline in travel demand to economic uncertainties. Expedia is set to hold an investor call at 4:30 p.m. New York time, where analysts will be keen to hear about the company’s outlook for the current period. Projections suggest a slowdown in growth, with an anticipated 6.3% decrease in nights booked for the second quarter, according to data compiled by Bloomberg. The company had previously indicated in February that growth for the full year would also decelerate, providing guidance of 4% to 6% gross bookings growth for 2025.
**FAQ**
**What factors contributed to Expedia’s lower gross bookings in Q1 2025?**
Expedia’s lower gross bookings were attributed to a decline in domestic travel demand, which began to soften before the impact of US tariffs on global markets.