Expedia Hit by US Travel Slump, Canada Bookings Down 30%

Expedia Group reported mixed first-quarter 2025 results, with bookings and revenue in line with guidance but impacted by softening U.S. travel demand and a sharp drop in inbound bookings from Canada, down nearly 30%. CEO Ariane Gorin cited weak consumer sentiment and declining traffic on key U.S. inbound corridors as major headwinds.

Chief Financial Officer Scott Schenkel noted that two-thirds of Expedia’s business stems from the U.S. point of sale, making the company especially vulnerable to domestic demand shifts. Overall inbound travel to the U.S. fell 7% in Q1.

In response, Expedia revised its full-year guidance, projecting gross bookings and revenue growth between 2–4%. Despite challenges, Gorin expressed confidence in long-term growth, highlighting a 6% year-over-year rise in room nights booked, led by strong B2B performance in Asia-Pacific.

The company’s B2B segment saw 14% growth, with revenue hitting $947 million. Meanwhile, consumer revenue fell 2% to $1.96 billion. Total revenue rose 3% to $2.99 billion, while gross bookings reached $31.45 billion, a 4% increase.

Expedia’s net loss for the quarter was $200 million, up from $135 million in Q1 2024. Adjusted EBITDA rose 16% to $296 million. Marketing spend climbed 6% to $1.76 billion.

Gorin announced the beta launch of Expedia Trip Matching, an AI-powered Instagram-based booking tool. The platform converts travel Reels into personalized itineraries, showcasing Expedia’s continued AI innovation.

Following layoffs earlier in 2025, Expedia has restructured 4% of its workforce and 7% of its contractors to improve efficiency and reinvest in strategic initiatives.

Tags: phocuswire

Expedia Hit by US Travel Slump, Canada Bookings Down 30%

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