Expedia Group – the parent company of Expedia.com, Vrbo, and Hotels.com – released its Q1 2025 earnings. While its Q1 financials landed within prior guidance, the company lowered its outlook for the rest of the year – triggering a 7% drop in its stock price. The cause: weakening demand in the United States and a significant decline in inbound international travel.
Key Takeaways for STR Hosts
According to CEO Ariane Gorin, “U.S. demand was soft, driven by declining consumer sentiment.” Bookings from Canada were down nearly 30%, and inbound international travel to the U.S. declined by 7%.
Gorin also noted a shift in travel behavior among European customers. Rather than visiting the U.S., many are now choosing destinations in Latin America – an early signal that global travel demand may be rebalancing away from the U.S.
Insights Affecting Vrbo Hosts
Expedia has all its lodging brands – Expedia.com, Vrbo, Hotels.com – grouped under one category called “B2C Lodging.” As a result, Vrbo received minimal direct attention during the earnings call, and no Vrbo-specific financials were disclosed.
Gorin said Vrbo “grew modestly for the third consecutive quarter,” and CFO Scott Schenkel added that Vrbo bookings were positive and grew in line with the broader U.S. market.
The most notable detail came when Gorin revealed that nearly a third of Vrbo’s recent growth came from new multi-unit inventory added last year. That suggests a potential shift in Vrbo’s supply strategy – becoming more receptive to urban and multi-unit listings, which historically took a back seat to traditional vacation homes.
For hosts managing multi-unit or urban rentals, this pivot could open up new visibility and demand on the Vrbo platform.
Gorin also addressed the decision to slash One Key Rewards for Vrbo stays starting May 22nd where Blue-tier members – the lowest level of Expedia’s loyalty program – will no longer earn points for Vrbo bookings. The reasoning? “Blue members didn't drive sufficient repeat [bookings] to justify the cost and resulting pressure on Vrbo's revenue,” she said.
For hosts, this may lead to fewer loyalty-driven repeat stays from cost-conscious travelers using Vrbo.
Bottom Line
Expedia’s Q1 earnings are the latest in a string of reports signaling growing concerns about U.S. travel demand. While STRs remain strong in many regions, the data points to softening inbound interest and a more selective, price-sensitive traveler – especially for international bookings. Hosts may need to adjust their pricing strategies, channel mix, and marketing to stay ahead in a changing landscape.
