Expedia CEO Notes Continued Travel Demand Despite High Gas Prices
Despite record-high gas prices in the U.S., travel demand remains strong, according to Expedia Group (EXPE) CEO Ariane Gorin. She noted a 35% increase in Labor Day travel searches and observed that consumers are prioritizing vacation destinations like Las Vegas or Mexico while using budget filters for better deals. Expedia has seen resilient performance this year amid rising gas prices linked to the US-Iran war, with second-quarter revenue up 14% YoY. Adjusted earnings per share rose by 36%, prompting management to raise full-year guidance and gross bookings projections. The company's stock is down slightly for the year but has gained 12% in six months. Analysts remain optimistic about Expedia’s fundamentals, citing a strong P/E ratio of 14x, revenue growth acceleration, margin expansion, share repurchases, and dividend increases.
Tickers: $EXPE
Topics: Consumer Behavior Gas Prices Impact Revenue Growth Travel Industry