Expedia’s stock surged nearly 12% on Friday after the online travel giant raised its full-year gross bookings forecast, signaling renewed optimism for the U.S. travel market.
The company now expects gross bookings for 2025 to rise between 3% and 5% — an improvement from its earlier projection. CEO Ariane Gorin noted that since early July, there has been a noticeable increase in travel activity, particularly domestically.
Analysts see further momentum ahead. Morningstar projects growth could accelerate to 7% in 2026 as travelers gain more clarity on economic policies. Recent trade tariffs had dampened travel spending earlier this year, but industry experts say U.S. consumers appear ready to commit to trips again.
Expedia’s second-quarter performance also reflected its streamlined strategy. By simplifying its organizational structure, reducing costs, and leveraging generative AI, the company expanded margins by 190 basis points — well above its prior guidance.
Industry-wide trends show a split in consumer behavior: high-income travelers continue to spend strongly on bookings, while lower-income consumers remain more cautious. Even so, Expedia’s tighter operations and targeted growth plans are delivering steadier results.
Currently, the company’s shares trade at roughly 12 times forward earnings — a discount to the industry median of 14.19 — suggesting investors may still see upside potential.
Partner With Us
Want to feature your brand, business, or service on 365247 — Whether you’re looking to sponsor, collaborate, or build presence within our ecosystem, we’d love to explore it with you.
Submit your Interest Here
