Expedia Group’s results for the first quarter of 2025 fell within its guidance range, but the company is facing growing challenges as travel demand softens, particularly in the United States and in inbound markets. CEO Ariane Gorin acknowledged that U.S. demand had been weaker than anticipated, driven by declining consumer sentiment, while the company also experienced pressure on key U.S. inbound corridors.
“U.S. demand was soft, driven by declining consumer sentiment, and we felt pressure on key inbound U.S. corridors,” Gorin explained during the company’s earnings call on Thursday.
Inbound Travel Struggles and Canada’s Impact
Chief Financial Officer Scott Schenkel noted that two-thirds of Expedia’s business comes from U.S. sales, but the company saw notable declines in inbound travel to the U.S. during the quarter. Specifically, inbound bookings from Canada dropped by nearly 30%, contributing to a 7% overall decline in inbound U.S. travel.
“We also noticed softness in demand for inbound travel into the U.S., which was down 7%. As part of that, inbound bookings from Canada fell nearly 30%,” Schenkel shared with analysts.
Due to these headwinds, Expedia has revised its expectations for the remainder of 2025. The company is bracing for a more challenging travel environment, particularly in its key North American markets, and is taking steps to adjust its strategy to navigate the shifting demand dynamics.
