By Dee-Ann Durbin, Associated Press
Expedia Group said on Friday that a reduction in travel demand in the United States led to lower than expected income in the first quarter, and Bank of America said that credit card transactions have shown that flight expenditure and accommodation continued to drop last month.
The two reports add to growing indications that the American travel and tourism industry could see its first slowdown since the end of the Cavid-19 pandemic fueled a period of “vengeance trip” which turned into sustained interest in fleeing.
Expedia, which has the Hotels.com and VRBO accommodation booking platforms as well as an eponymous online travel agency, was the last American company to report slowdown with international visitors and national travelers.
Airbnb and Hilton noted the same trends last week in their quarterly reports. Most of the major American airlines have drawn their financial guides in annual year in April and said they planned to reduce planned flights, citing reflux in economic passengers to book leisure trips.
The American travel association said that economic uncertainty and anxiety in the face of President Donald Trump’s prices could explain the decline. In April, Americans’ confidence in the economy has dropped for a fifth consecutive month at the lowest level since the start of the pandemic.
Bank of America said on Friday that his credit card holders were ready to spend on “Gentile to have” services like eating in restaurants in March and April, but “discretionary expenses of larger tickets on plane tickets and accommodation continued to decrease, perhaps due to the drop in consumer and concern about economic prospects”.
Abroad, the anger of the prices as well as the concerns concerning tourist detentions on the American border have made citizens of other countries less interested in going to the United States, according to experts from the tourism industry.
The US government said last month that 7.1 million visitors had entered foreigners in the United States at the end of March, 3.3% less than in the first three months of 2024.
The figures did not include the Terriens of Mexico or the trips of Canada, where citizens expressed their indignation on Trump’s remarks on the realization of their country the 51st state. US and Canadian government data has shown a sharp drop in Canada border crossings.
EXPEA financial director Scott Schenkel said the net value of reservations from the Travel Technology Company in the United States had dropped 7% in January-March, but reservations in the United States from Canada have dropped by almost 30%.
On Friday, during a conference call with investors, the CEO of Expedia, Ariane Gorin, said that the American demand was even softer in April than in March.
“We continue to see the pressure on travel in the United States, but we have also seen a rebalancing,” said Gorin. “Europeans are traveling less to the United States, but more in Latin America.”
Expedia, based in Seattle, said its income increased by 3% to $ 2.99 billion for the quarter. It was lower than the Wall Street at 3 billion dollars awaited, analysts interviewed by FactstSet said.
Expedia shares fell 7% in midday trade on Friday.
Airbnb said last week that foreign trips to the United States represent only 2% to 3% of its activities. But in this category, this notes a drop in interest in the United States as a destination.
“I think Canada is the most obvious example, where we see that Canadians move to a much lower rate in the United States, but they travel more at the national level, they go to Mexico, they go to Brazil, they go to France, they go to Japan,” said Ellie Mertz in France in Airbnb.
Meanwhile, Hilton reduced his annual forecasts for revenues per available room, a key metric of the industry. The company said at the end of April that it now forecasts growth from 0% to 2% for the year, from 2% to 3%.
Hilton’s president and chief executive officer Christopher Nassetta told stock market analysts that the company had seen international go to its American hotels during the first quarter, in particular Canada and Mexico.
But Nassetta said he had remained optimistic for the second half of this year.
“My own belief is that you will see some-if not many-this uncertainty go in the next two quarters, and this will allow the underlying force of the economy to shine again,” he said.
Originally published:
California Daily Newspapers
