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Expedia says people are still making travel plans -- and it's not just the wealthy

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  Published in Travel and Leisure on Thursday, November 6th 2025 at 17:21 GMT by MarketWatch
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Strong Q1 Earnings Signal Robust Demand

Expedia’s Q1 2024 financial results were published at the end of April, and the company’s revenue grew 12% year over year to $3.2 billion. Net income for the quarter was $120 million, up from a loss of $50 million in the same period a year earlier. Lesser highlighted that the uptick in revenue was driven by higher average booking values and an increase in the number of itineraries processed across the company’s various booking portals.

The earnings release also noted a 15% increase in hotel occupancy rates, a 10% lift in average daily rates, and a 20% growth in the number of rooms sold through the platform. “We’re seeing people booking not just short weekend getaways but multi‑day vacations, even for families,” Lesser said. “The data tells us that the travel market has returned to a level that we’d only seen before the pandemic, and it’s happening across the board.”

Not Just the Wealthy: Demographic Expansion

One of the key takeaways from the interview was the assertion that the resurgence is not limited to the wealthy or business travelers. “We’re seeing a new wave of travelers who are making the most of the lower cost of travel that’s emerged during the pandemic,” Lesser said. He pointed to data from Expedia’s own research that shows a 30% increase in bookings by travelers aged 18‑34 and a 15% uptick in bookings by those in the 35‑54 age bracket.

The company’s research also indicates that the share of travelers booking through mobile devices has risen to 55% of all bookings, up from 42% in Q1 2021. This shift reflects broader consumer behavior, with younger travelers preferring the convenience of mobile-first booking platforms.

Business Travel Returns

While leisure bookings have driven much of the growth, business travel is also on the rise. Expedia Group’s partner, American Express Global Business Travel, reported a 7% increase in business itineraries in the first quarter. Lesser noted that the hybrid work model — which has become the norm for many large enterprises — is a key driver behind the return of business travel. “The number of business travelers resuming mid‑week flights has gone up significantly,” he said, referencing the rise in “business‑centric” itineraries that combine work meetings with leisure.

The Role of Inflation and Consumer Confidence

Expedia’s CEO linked the resurgence in travel demand to a general rebound in consumer confidence and a slowing inflation rate. The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for travel and lodging fell by 2% in March 2024 compared to the previous year, making travel slightly more affordable for the average consumer.

The article also drew on a recent Reuters piece that analyzed the broader travel industry. According to Reuters, the global travel industry saw a 10% increase in revenue in the first quarter of 2024, with domestic travel accounting for 60% of the total. “Travelers are also taking advantage of the increased supply of vacation packages and last‑minute deals,” the Reuters analysis added, referencing the surge in “bundled” travel offers that combine flights, hotels, and car rentals.

Competitive Landscape and Future Outlook

The MarketWatch piece included a brief look at competitors. Booking Holdings, which operates Booking.com, Kayak, and Agoda, also posted a 9% increase in revenue in Q1 2024. Expedia Group remains focused on differentiating itself through its large inventory of vacation rentals and unique experiences available on Vrbo. “We’re investing heavily in the Vrbo platform to capture the vacation rental market, which has grown 25% year over year,” Lesser said.

The CEO also noted that Expedia Group plans to expand its “experiences” portfolio, which includes activities such as tours, cultural events, and local experiences. “We want to offer travelers more than just a place to stay or a flight; we’re building a platform that lets them fully experience the places they visit,” he said.

In closing, Rich Lesser emphasized that the travel industry is not only back to pre‑pandemic levels but is on a trajectory for continued growth. “Our data shows that people are increasingly willing to invest in travel experiences,” he said. “Whether it’s a weekend getaway, a family vacation, or a business trip, we’re seeing travelers from all walks of life booking through our platforms.”

Links to Further Information

• Expedia Group Q1 2024 Earnings Release: The full earnings report and financial statements are available on the company’s investor relations website, providing detailed breakdowns of revenue streams, operating costs, and segment performance.

• Expedia Group Investor Relations: The company’s investor relations page hosts a wealth of additional resources, including a transcript of the earnings call and a Q&A session with the CFO and CEO.

• Reuters: Global Travel Industry Trends: The referenced Reuters article provides a broader industry context, analyzing the recovery of international travel and the impact of changing consumer behavior on travel revenue.

• Consumer Price Index Data: The U.S. Bureau of Labor Statistics publishes monthly CPI data, offering insight into the inflationary environment that is shaping consumer spending on travel.

These additional resources provide deeper context for understanding Expedia Group’s recent performance, the evolving dynamics of the travel market, and the factors influencing consumer travel decisions.