Expedia raises annual forecast on resilient domestic travel demand

Travel demand in the U.S. has been healthy, CEO Ariane Gorin told Reuters, noting that domestic bookings outpaced cross-border travel.

"People are spending in particular domestically, whether it's for the World Cup, for concerts, for being outdoors," Gorin said, adding the demand created a "healthy backdrop" for the rest of the year.

Travel firms are gaining from steady leisure demand and the recently concluded FIFA World Cup, helping offset drag from the Middle East conflict, which has entered its sixth month.

Gorin noted that ongoing events in the Middle East have been disrupting air capacity, while airfares and hotel prices have climbed across the industry.

Peer Booking said on Tuesday that reduced inbound travel to the Middle East and pressures on global flight routes would persist through its third quarter.

However, Gorin said the Middle East represented a "relatively small portion" of Expedia's overall business, concentrated primarily in its B2B division.

"Over the arc of time, there will be a return to strong growth there."

Expedia Group on Wednesday raised its forecast for full-year gross bookings and revenue, betting on resilient travel demand and strong domestic spending in the U.S.

The Seattle-based company raised its 2026 gross bookings forecast to the range of $129.5 billion to $130.8 billion from a prior view of $127 billion to $129 billion, compared with analysts' average estimate of , according to data compiled by LSEG.