Expedia Stock Rises 12% on Strong Earnings, Higher 2025 Growth Forecast
August 11, 2025 | New Delhi, India – Expedia Group Inc. is one of the world’s largest online travel agencies. Known for its global reach and technology-driven platform, Expedia has become a top choice for millions of travelers. On Tuesday, the company’s stock surged nearly 12%, following a positive earnings report and an optimistic 2025 forecast.
CEO Ariane Gorin shared that U.S. travel demand has surged since July, signaling a strong recovery. This uptick follows a slow start to the year, caused by concerns about economic conditions and trade tariffs.
“We’ve seen a clear rise in demand, particularly in the U.S.,” Gorin said during the earnings call. “This marks a significant recovery as confidence returns.”
Expedia now expects gross bookings to grow by 3% to 5% in 2025. This is an increase from the previous estimate of 2% to 4%. Analysts, including Dan Wasiolek from Morningstar, are even more optimistic. They project a 7% growth in bookings by 2026.
This outlook reflects trends in the broader travel industry, with companies like Marriott and Airbnb also reporting strong growth. High-income consumers are driving the majority of the demand, while lower-income travelers remain more cautious.
In addition to increased bookings, Expedia is focusing on efficiency. The company has streamlined its operations, cut down on roles, and adopted new technologies like generative AI to reduce costs. Its second-quarter margin increased by 190 basis points, surpassing the company’s earlier forecast of 75 to 100 basis points.
“Expedia’s strategic focus on cost management and tech investments is key to its performance,” said Michael Bellisario, an analyst at Baird.
However, some analysts are cautious about the long-term challenges facing the travel sector. These include rising labor costs and potential disruptions from trade policies. ACCORDING TO A Reuters report, Expedia’s stock is currently trading at 12.01 times its forward profit estimates, below the industry median of 14.19, indicating potential for further gains.
Expedia’s stock rallied 11.8% on Tuesday, and other travel stocks followed suit. With the continued rebound in travel demand, Expedia’s strategy of controlling costs while capitalizing on this recovery appears to be working.
As the company moves forward, maintaining growth while navigating global challenges will be crucial to its long-term success.
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