Online travel company Expedia raises its annual performance forecast due to enhanced demand resilience

Anshuman Tripathy

Reuters, November 4 - Expedia Group (EXPE.O) on Wednesday raised its full-year total bookings and revenue forecasts, betting that international travel demand will remain steady.

Despite persistent inflation, spending by affluent consumers has supported the international tourism industry. However, a prolonged war in Iran and unrest in parts of Europe have introduced more uncertainty for the sector.

Expedia raised its forecast range for full-year total bookings from the previous $129.5 billion to $130.8 billion, to a new range of $131.4 billion to $131.9 billion.

According to data compiled by London Stock Exchange Group (LSEG), analysts had earlier expected average full-year total bookings of $130.22 billion.

"U.S. consumers are showing strength in domestic travel as well as outbound trips to Europe and Asia," Chief Executive Ariane Gorin told Reuters.

The company expects fourth-quarter revenue to be between $3.69 billion and $3.75 billion, with the midpoint below analysts' expectations of $3.74 billion.

Gorin attributed the lowered fourth-quarter forecast to the US midterm elections and unrest in the Middle East and Europe.

Her comments echoed those of rival Booking Holdings (BKNG.O) on Tuesday, which pointed to obstacles to travel to and from the Middle East, higher airfares, and unrest in some European cities.

Hotel operators including Hilton HLT.N and Marriott MAR.O have also noted that the Middle East conflict and election impacts are likely to weigh on their fourth-quarter results.

Gorin noted that in Europe, domestic travel outnumbers long-haul outbound trips.

The Seattle-based company now expects annual revenue to be between $16.37 billion and $16.43 billion, up from a prior projection of $16.05 billion to $16.22 billion.

Expedia reported adjusted earnings per share for the third quarter at $9.39, beating Wall Street estimates of $8.89.

The parent company of Vrbo said revenue in the quarter ending September 30 grew about 12% to $4.94 billion, surpassing the expected $4.74 billion.

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