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NEW YORK (Reuters) -Expedia Group Inc on Thursday beat Wall street estimates for first-quarter revenue on record lodging bookings as travel returns to urban markets and international travel demand approaches pre-pandemic levels.
U.S. travel companies are benefiting from record for accommodation bookings and higher flight prices as travel demand remains elevated despite concerns of an economic downturn and travel patterns shift to shorter stays.
Shares of the company rose 4.3% in trading after the bell.
“The first quarter saw strong travel demand driven by increasing international travel, major city travel, and the reopening in Asia,” Expedia (NASDAQ:EXPE) Group CEO Peter Kern said in a statement.
Total gross bookings rose 20% year-over-year to $29.4 billion.
Due to hybrid work, travelers are returning to cities, shortening the length of their stays and shifting away from month-long COVID-era beach or mountain vacations, Kern told investors on the call.
“While these trends are helping our hotels business, the same trends are also putting some pressure on our business,” he added.
The Vrbo and Hotel.com operator said first-quarter growth rates were also impacted by FX headwinds.
The company posted an adjusted first-quarter loss of 20 cents per share, missing analysts’ expectations for a loss of 4 cent a share.
The online booking company’s revenue rose to $2.7 billion in the first quarter up 18% from a year ago, the highest first quarter revenue for the company, and beat analysts’ average estimate of $2.6 billion.
Competitor Booking Holdings (NASDAQ:BKNG) Inc also reported on Thursday record first-quarter room night and gross bookings.
