Dee-Ann Durbin, Associated Press
Expedia Group said on Friday that lower travel demand in the US generated lower than expected revenue in the first quarter, while Bank of America said credit card transactions continue to reduce flight and accommodation spending last month.
The two reports add to the indication that the US travel and tourism industry may see its first slowdown since the end of the Covid-19 pandemic promoted a period of “revenge trips” that turned into persistent interest in fleeing.
Expedia, which owns accommodation booking platforms.com and VRBO, is an online travel agency of the same name and the latest American company to report slowing down both international visitors and domestic travelers.
Airbnb and Hilton pointed out the same trend last week in their quarterly revenue report. Most major US airlines said they plan to reduce scheduled flights, citing economic passengers booking leisure trips in April.
The American Travel Association says President Donald Trump’s economic uncertainty and uncertainty about tariffs may explain pullback. In April, Americans’ confidence in the economy plummeted to its lowest level for five months since the start of the pandemic.
Bank of America said Friday that credit card holders will be happy to spend on “good” services, including dining at restaurants in March and April, but “discretionary spending on airfares and accommodation tickets continues to decline, possibly due to concerns about consumer confidence and economic outlook.”
Tourism industry experts say outrage over tariffs overseas and concerns over Tourism Bureau detention at the US border have made some citizens in other countries less interested in travelling to the US.
Last month, the US government said 7.1 million visitors had entered the US from overseas this year as of the end of March. This is 3.3% less than the first three months of 2024.
This number did not include land crossings from Mexico or travel from Canada. On trips from Canada, citizens have expressed digging about Trump’s comments on making their country the 51st state. Data from both the US and Canadian governments show a sharp decline in border crossings from Canada.
Expedia’s Chief Financial Officer Scott Schenkel said the net value of travel technology companies’ bookings fell by 7% between January and March, while bookings from Canada to the US fell by nearly 30%.
In a conference call with investors on Friday, Expedia CEO Ariane Gorin said that in April, the US demands were even softer than in March.
“We’re still putting pressure on our trip to the US, but we’re also looking at rebalancing,” Golin said. “Europeans travel less to the US, but they travel more to Latin America.”
Seattle-based Expedia said revenues increased by 3% to $2.999 billion. It was lower than Wall Street had expected $3 billion, according to analysts voted by FactSet.
Expedia’s shares were under 7% in noon trading on Friday.
Airbnb said last week that foreign travel to the US constitutes only 2% to 3% of its operations. However, within that category, we believe that interest in the US is declining as a destination.
“I think Canada is the most obvious example. Canadians travel to the US at a much lower rate, but they travel more homely, they travel to Mexico, they go to Brazil, they go to France, they go to Japan, they go to Japan,” Ellie Mertz said in a conference call with investors.
Meanwhile, Hilton has lowered its annual forecast of revenue per available room, a key industry indicator. The company said in late April it is expected that annual growth of 0% to 2% will decrease from 2% to 3%.
Hilton president and CEO Christopher Nassetta told equity analysts he was watching international trips to US hotels throughout the first quarter, particularly from Canada and Mexico.
However, Nasetta said he remains optimistic later this year.
“My own belief is that you see some of the uncertainty over the next few quarters, which will allow the underlying strength of the economy to shine again,” he said.
Original issue: May 9, 2025, 3:33pm EDT
