Expedia raises annual forecast on resilient domestic travel demand (updated)

Expedia

05/08/2026 21:16

Domestic travel outpaced cross-border demand, CEO Gorin says
Expedia beats second-quarter profit, revenue estimates
Notes higher airfares, hotel rates alongside Mideast disruptions
Adds share movement
By Anshuman  Tripathy
Aug 5 (Reuters) - Online travel company Expedia Group EXPE.O on Wednesday raised its forecast for full-year gross bookings and revenue, betting on resilient travel demand and strong domestic spending in the U.S., sending its shares up 9% in extended trading.
Travel demand in the U.S. has been healthy, CEO Ariane Gorin told Reuters, noting that domestic bookings outpaced cross-border travel.
"People are spending in particular domestically, whether it's for the World Cup, for concerts, for being outdoors," Gorin said, adding the demand created a "healthy backdrop" for the rest of the year.
Travel firms are gaining from steady leisure demand and the recently concluded FIFA World Cup, to help offset drag from the Middle East conflict, which has entered its sixth month.
Expedia raised its 2026 gross bookings forecast to the range of $129.5 billion to $130.8 billion from a prior view of $127 billion to $129 billion, compared with analysts' average estimate of $128.66 billion, according to data compiled by LSEG.
The Seattle-based company expects annual revenue of $16.05 billion to $16.22 billion, compared with $15.6 billion to $16.0 billion previously.
However, prolonged wars may cloud the industry's outlook as rising costs could hurt global travel spending. 
Gorin noted that ongoing events in the Middle East have been disrupting air capacity, while airfares and hotel prices have climbed across the industry. 
Peer Booking said on Tuesday that reduced inbound travel to the Middle East and pressures on global flight routes would persist through its third quarter. 
However, Gorin said the Middle East represented a "relatively small portion" of Expedia's overall business, concentrated primarily in its B2B division.
"Over the arc of time, there will be a return to strong growth there." 
Expedia reported quarterly adjusted profit of $5.76 per share, beating Wall Street estimates of $5.23.
The Vrbo parent's revenue rose about 14% to $4.32 billion for the quarter ended June 30 from a year ago, beating estimates of $4.17 billion.

Expedia outpaces peer Booking, broader S&P 500 benchmark over the past three months https://tmsnrt.rs/4hgkLFY
 (Reporting by Anshuman Tripathy in Bengaluru; Editing by Shreya Biswas)
 ((Anshuman.Tripathy@thomsonreuters.com;))