Expedia says people are still making travel plans - and it's not just the wealthy

By Claudia Assis

Expedia sees "improved demand environment" across the board.

Expedia Group Inc. late Thursday gave investors a fresh reason to be optimistic about the travel and leisure sector, raising its guidance for the year as it said people are still making travel plans - and not just the well-heeled.

Expedia's (EXPE) news comes as AirBnb Inc. (ABNB) forecast better-than-expected fourth-quarter sales, even as spending on new services and political battles could cut into its profits.

Expedia shares rallied more than 10% in the extended session Thursday, after ending the regular trading day up nearly 3%. Expedia's brands include the eponymous Expedia site as well as Orbitz, Travelocity, Hotels.com and vacation-home rental Vrbo.

Thursday's results and increased guidance reflect "an improved demand environment" across the board, Chief Executive Ariane Gorin said.

The online travel agency guided for revenue growth of 6% to 7% for the year, from a previous guidance of 3% to 5%. It called for an increase in gross bookings of 7% for the year, from an earlier outlook of 3% to 5%.

Expedia said it expects revenue growth between 6% to 8% for the holiday quarter.

The company reported third-quarter adjusted earnings of $7.57 a share on sales of $4.4 billion, up 9% on year. Analysts polled by FactSet expected adjusted earnings of $6.97 a share on sales of $4.3 billion.

See also: Rich fliers are making United and Delta billions by buying premium perks

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-06-25 1702ET