July and August are typically peak vacation months, but Expedia (EXPE) has issued a warning about weakening travel demand this summer. “In July, we have seen a more challenging macro environment and a softening travel demand. We are therefore adjusting our expectations for the rest of the year,” said CEO Ariane Gorin in the Q2 earnings release, noting economic pressures in the U.S.
Expedia now forecasts Q3 gross bookings and revenue growth between 3% and 5%. Other travel companies, like Airbnb (ABNB) and Booking.com (BKNG), also report slowing U.S. demand. Despite concerns, Expedia’s stock surged over 10% on August 9, driven by solid Q2 earnings, especially in international bookings. The company posted $3.51 per share in adjusted earnings, beating forecasts, with $3.6 billion in revenue, up 6% year-over-year. Gross bookings rose 6% to $28.8 million, and room nights grew 10%.