By Anshuman Tripathy
Nov 4 (Reuters) – Expedia Group on Wednesday raised its full-year forecast for gross bookings and revenue, betting on steady demand for international travel.
Spending by affluent consumers has supported international travel despite persistent inflation, though the prolonged Iran war and unrest in parts of Europe have added uncertainty for the industry.
Expedia raised its annual gross bookings forecast to the range of $131.4 billion to $131.9 billion, from $129.5 billion to $130.8 billion earlier.
Analysts on average were expecting annual gross bookings of $130.22 billion, according to data compiled by LSEG.
“The US consumer was strong both in domestic travel and in outbound to Europe and Asia,” CEO Ariane Gorin told Reuters.
The company forecast fourth-quarter revenue in the range of $3.69 billion to $3.75 billion, with the midpoint below analysts’ estimates of $3.74 billion.
Gorin pinned moderation in the fourth-quarter forecast on the US midterm elections and unrest in the Middle East and Europe.
Her comment echoes those from peer Booking Holdings on Tuesday on travel disruptions to and from the Middle East and the impact of elevated airfares, alongside unrest in certain European cities.
Hotel operators including Hilton and Marriott have also flagged a drag from the Middle East conflict on their fourth-quarter results, along with impact from the elections.
In Europe people traveled more domestically than long-haul outbound, Gorin noted.
The Seattle-based company expects annual revenue of $16.37 billion to $16.43 billion, compared with $16.05 billion to $16.22 billion previously.
Expedia reported third-quarter adjusted profit of $9.39 per share, beating Wall Street estimates of $8.89.
The Vrbo parent’s revenue rose about 12% to $4.94 billion for the quarter ended September 30, beating estimates of $4.74 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Sriraj Kalluvila)
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