EXPEDIA Group posted better-than-expected grossing bookings in the third quarter and said it was raising its full-year guidance, suggesting that demand has proven stronger than the company had previously thought heading into the holiday season.
Gross bookings across the company’s platforms for hotel, flight, car rental and vacation home reservations totalled US$27.5 billion, above Wall Street’s estimates of US$26.7 billion. Customers booked a total of 97.4 million nights on Expedia’s travel websites, which include Expedia.com, Hotels.com and the short-term rental marketplace Vrbo, also above analysts’ projections.
Expedia generates roughly two-thirds of its revenue in the US, making it a strong gauge of US discretionary spending and offering investors a clearer picture of the nation’s travel demand. Its rivals Airbnb and Booking Holdings rely on international markets for the majority of their sales. The three months ending September is typically the most lucrative quarter for the company as it’s when Americans take summer vacations and begin planning winter getaways.
Thursday’s (Nov 7) report worked to reinforce an overall resilience in travel demand in the second half of this year. Just minutes after Expedia posted its results, Airbnb issued an upbeat forecast for the holiday period driven by “strong demand trends”. And just last week, Booking announced better-than-expected quarterly results and raised its full-year gross bookings forecast, sending its stock price soaring to a record high.
Expedia’s shares were up 8.5 per cent in after-hours trading.
Just months ago, Expedia chief executive officer Ariane Gorin had warned travel demand would soften. The company had cut its full-year guidance twice before Thursday’s earnings.
The company separately announced that its chief financial officer, Julie Whalen, is stepping down after a successor is appointed. That’s expected to occur before Feb 17. She has also resigned as a member of the board. BLOOMBERG
