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
What Bangladesh’s election means for India, China and Pakistan ties
- Bangladeshis will vote on Feb. 12, almost two years after the 2024 student-led uprising
- After nearly 2 years of tensions, experts expect a thaw with India under elected government
DHAKA: As Bangladesh prepares to hold its first elections since the 2024 ouster of Sheikh Hasina, its longest-serving prime minister, the outcome will define Dhaka’s relations with the most important regional powers — China, India, and Pakistan.
Nearly 128 million Bangladeshis will head to the polls on Feb. 12 to bring in new leadership after an 18-month rule of the current caretaker administration.
The interim government, led by Nobel laureate Muhammad Yunus, took control following a student-led uprising that ended 15 years in power of Hasina and her Awami League party.
The two main parties out of the 51 competing for power are the Bangladesh Nationalist Party and Jamaat-e-Islami. The Awami League, which for decades has had close ties with India, was excluded from the election ballot over its role in the deadly crackdown on the 2024 student-led protests, in which 1,400 people were killed.
While Bangladesh’s relationship India has deteriorated since the fall of Hasina, who has been in self-exile in New Delhi, the period of diplomatic strain is expected to ease when the new government takes office.
“Whoever comes to power in Bangladesh, due to domestic pressure in the country, relationships with India need a resetting,” Humayun Kabir, former ambassador to the US, told Arab News.
“It’s anticipated that India will also engage with the new government, but they will protect their interests, and we also have to do the same. It’s most likely that the India-Bangladesh relationship will be normalized under the new, elected, government.”
Since 2024, India has suspended key transshipment access that allowed Bangladeshi exports to go via Indian ports and airports. It also put on hold most normal visa services for Bangladeshis, who were among its largest groups of medical tourists.
From Hasina’s heavy pro-India orientation, the interim government has tried to rebalance Bangladesh’s foreign policy toward the two other key regional players — China and Pakistan — who at the same time are India’s main rivals.
If New Delhi regains its importance, it should not deal a blow to the newly expanded relations with Pakistan, with whom Bangladesh has recently increased exchanges, especially economic, and last month resumed direct flights — after a 14-year gap.
Since the relations have been expanded under the caretaker government, Prof. Delwar Hossain from the International Relations Department at Dhaka University forecast that they would only further improve, no matter who comes to power, and there is no likelihood of a sudden change.
“For Pakistan, any political coalition — whether BNP or Jamaat — will be positive. The BNP has a long history of having good relations with Pakistan during their rule ... Jamaat also has a strong and very positive influence in Pakistan,” he said.
“For Pakistan, the new regime or new government is not the issue. The issue is what the (India) policy of the new government would be and to what extent it would actually support Pakistan’s view.”
Both the BNP and Jamaat have repeatedly said they wanted friendly relations with India, and Hossain expected that they would, at the same time, continue the balanced approach introduced by the caretaker administration.
“India is a reality as a neighbor. At the same time, India is also showing interest in mending relations or adopting a more cooperative approach after the vote, with the government that will be elected ... I think there will be pragmatism from both sides,” he said.
“I don’t see there is a long-term threat to Bangladesh-India relations ... When China and Pakistan were trying to create a trilateral cooperative system or some kind of coalition — China, Bangladesh and Pakistan — we have seen that Bangladesh opted out. It seems that Bangladesh is going to continue its policy of maintaining a balance among these great powers.”
Bangladesh’s relations with China have not changed since the ouster of Hasina, whose government signed several economic agreements with Beijing. Yunus’s administration has continued this cooperation, and China was among the very few countries he officially visited during his term.
During the visit, he secured about $2.1 billion in Chinese investments, loans and grants, including funding for infrastructure like Mongla Port and a special economic zone in Chattogram — Bangladesh’s largest port. China has also eased visa rules for Bangladeshi businesspeople, medical travelers and tourists.
According to Munshi Faiz Ahmed, Bangladesh’s former ambassador to Beijing, China’s importance for Bangladesh cannot be substituted by any other country, especially as over the past few years it has emerged not only as its key investor, but also the largest trade partner.
In the fiscal year 2024-25, Bangladesh’s trade with China was over $21.3 billion, according to National Board of Revenue data. With India, it was about $11.5 billion.
The trade — especially import — dependence on Beijing started long before the regime change. In terms of trade volume, China overtook India already in 2018.
“Even when people thought that we had very close relations with India, our relations with China continued to grow in terms of trade and commerce ... Our trade with China has surpassed India’s, and China is a much bigger investor in Bangladesh’s development projects,” Ahmed said.
“Bangladesh will continue to cooperate with China for a long time to come because what China can provide, no other country can.”
