Expedia Group said Friday that reduced travel demand in the United States led to its weaker-than-expected revenue in the first quarter, and Bank of America said credit card transactions showed spending on flights and lodging kept falling last month.
The two reports add to growing indications that the US travel and tourism industry may see its first slowdown since the end of the COVID-19 pandemic fueled a period of “revenge travel” that turned into sustained interest in getting away.
Expedia, which owns the lodging reservation platforms Hotels.com and VRBO as well as an eponymous online travel agency, was the latest American company to report slowing business with both international visitors and domestic travelers.
Airbnb and Hilton noted the same trends last week in their quarterly earnings reports. Most major US airlines pulled their full-year financial guidance in April and said they planned to reduce scheduled flights, citing an ebb in economy passengers booking leisure trips.
The US Travel Association has said that economic uncertainty and anxiety over President Donald Trump’s tariffs may explain the pullback. In April, Americans’ confidence in the economy slumped for a fifth straight month to the lowest level since the onset of the pandemic.
Bank of America said Friday that its credit card holders were willing to spend on “nice to have” services like eating at restaurants in March and April, but “bigger ticket discretionary outlays on airfare and lodging continued to decline, possibly due to declining consumer confidence and worries about the economic outlook.”
Abroad, anger about the tariffs as well as concern about tourist detentions at the US border have made citizens of some other countries less interested in traveling to the US, tourism industry experts say.
The US government said last month that 7.1 million visitors entered the US from overseas this year as of the end of March, 3.3 percent fewer than during the first three months of 2024.
The numbers did not include land crossings from Mexico or travel from Canada, where citizens have expressed indignation over Trump’s remarks about making their country the 51st state. Both US and Canadian government data have shown steep declines in border crossings from Canada.
Expedia Chief Financial Officer Scott Schenkel said the net value of the travel technology company’s bookings into the US fell 7 percent in the January-March period, but bookings to the US from Canada were down nearly 30 percent.
In a conference call with investors Friday, Expedia CEO Ariane Gorin said US demand was even softer in April than March.
“We’re still continuing to see pressure on travel into the US, but we’ve also seen some rebalancing,” Gorin said. “Europeans are traveling less to the US, but more to Latin America.”
Seattle-based Expedia said its revenue rose 3 percent to $2.99 billion for the quarter. That was lower than the $3 billion Wall Street was expecting, according to analysts polled by FactSet.
Expedia shares were down than 7 percent in mid-day trading Friday.
Airbnb said last week that foreign travel to the US makes up only 2 percent to 3 percent of its business. But within that category, it’s seeing declining interest in the US as a destination.
“I think Canada is the most obvious example, where we see Canadians are traveling at a much lower rate to the US but they’re traveling more domestically, they are traveling to Mexico, they are going to Brazil, they’re going to France, they’re going to Japan,” Airbnb Chief Financial Officer Ellie Mertz said in a conference call with investors.
Meanwhile, Hilton lowered its full-year forecast for revenue per available room, a key industry metric. The company said in late April that it now expects growth of 0 percent to 2 percent for the year, down from 2 percent to 3 percent.
Hilton President and CEO Christopher Nassetta told stock analysts the company saw international travel to its US hotels fall throughout the first quarter, particularly from Canada and Mexico.
But Nassetta said he remained optimistic for the second half of this year.
“My own belief is you will see some of — if not a lot of — that uncertainty wane over the next couple of quarters, and that will allow the underlying strength of the economy to shine through again,” he said.
More warning signs emerge for US travel industry as summer nears
https://arab.news/65mdh
More warning signs emerge for US travel industry as summer nears
- Expedia Group report drop in travel demand and Bank of America said credit card transactions showed spending on flights and lodging kept falling
- The US Travel Association has said that economic uncertainty and anxiety over President Donald Trump’s tariffs may explain the pullback
Youth voters take center stage in Bangladesh election after student-led regime change
- About 45% of Bangladeshis eligible to vote in Thursday’s election are aged 18-33
- Election follows 18 months of reforms after the end of Sheikh Hasina’s 15-year rule
DHAKA: When he goes to the polls on Thursday, Atikur Rahman Toha will vote for the first time, believing that this election can bring democratic change to Bangladesh.
A philosophy student at Dhaka University, Toha was already eligible to vote in the 2024 poll but, like many others, he opted out.
“I didn’t feel motivated to even go to vote,” he said. “That was a truly one-sided election. The election system was fully corrupted. That’s why I felt demotivated. But this time I am truly excited to exercise my voting rights for the first time.”
The January 2024 vote was widely criticized by both domestic and international observers and marred by a crackdown on the opposition and allegations of voter fraud.
But the victory of the Awami League of ex-Prime Minister Sheikh Hasina was short-lived, as a few months later the government was ousted by a student-led uprising, which ended the 15-year rule of Bangladesh’s longest-serving leader.
The interim administration, led by Nobel laureate Muhammad Yunus, took control in August 2024 and prepared a series of reforms to restructure the country’s political and institutional framework and organize the upcoming vote.
About 127.7 million Bangladeshis are eligible to cast their ballots, according to Election Commission data, with nearly a third of them, or 40.4 million, aged 18-29. Another 16.9 million are 30-33, making it a youth–dominated poll, with the voters hopeful the outcome will help continue the momentum of the 2024 student-led uprising.
“We haven’t yet fully transitioned into a democratic process. And there is no fully stable situation in the country,” Toha said. “After the election we truly hope that the situation will change.”
For Rawnak Jahan Rakamoni, also a Dhaka University student, who is graduating in information science, voting this time meant that her voice would count.
“We are feeling that we are heard, we will be heard, our opinion will matter,” she said.
“I think it is a very important moment for our country, because after many years of controversial elections, people are finally getting a chance to exercise their voting rights and people are hoping that this election will be more meaningful and credible. This should be a fair election.”
But despite the much wider representation than before, the upcoming vote will not be entirely inclusive in the absence of the Awami League, which still retains a significant foothold.
The Election Commission last year barred Hasina’s party from contesting the next national elections, after the government banned Awami League’s activities citing national security threats and a war crimes investigation against the party’s top leadership.
The UN Human Rights Office has estimated that between July 15 and Aug. 5, 2024 the former government and its security and intelligence apparatus, together with “violent elements” linked to the Awami League, “engaged systematically in serious human rights violations and abuses in a coordinated effort to suppress the protest movement.”
It estimated that at least 1,400 people were killed during the protests, with the majority shot dead from military rifles.
Rezwan Ahmed Rifat, a law student, wanted the new government to “ensure justice for the victims of the July (uprising), enforced disappearances, and other forms of torture” carried out by the previous regime.
The two main parties out of the 51 contesting Thursday’s vote are the Bangladesh Nationalist Party and Jamaat-e-Islami. Jamaat, which in 2013 was banned from political participation by Hasina’s government, heads an 11-party alliance, including the National Citizen Party formed by student leaders from the 2024 movement.
“I see this election as a turning point of our country’s democratic journey … It’s not just a normal election,” said Falguni Ahmed, a psychology student who will head to the polls convinced that no matter who wins, it will result in the “democratic accountability” of the next government.
Ahmed added: “People are not voting only for their leaders; they are also voting for the restoration of democratic credibility. That’s why this election is very different.”
