Expedia finds "softening" travel demand in July

In its 2Q2024 Earnings Report, fare aggregator and metasearch operator Expedia reports that although the firm's revenue grew by 6%, they experienced a "more challenging macro environment and a softening in travel demand" and have adjusted expectations for the rest of 2024 accordingly.

Airbnb and Booking Holdings also have reported lower travel demand in 2Q2024. Airbnb stock price fell by 14%. Amazon reported "cautious consumer spending."

Ariane Gorin - Expedia CEO only since February - attributed the firm's 6% revenue growth in 2Q2024 to:

• "significant improvement" in VRBO
• strength of the company's Brand Expedia advertising business
• B2B segment
• stronger international demand in Latin America and Asia

Although inflation is slowing in the US, it's still higher than what consumers are used to, and people are reducing spending. More than a quarter of American adults report they are struggling financially. And travel and away-from-home entertainment are two items on which many are cutting back spending this summer.

Will Labor Day and Holiday Season travel numbers and spend be down? If so, by how much, and what travel sectors will suffer most? Watch this space.