As inflation continues to impact consumer spending, many brands are feeling the pinch, but how is the travel sector holding up amid these shifts?
Expedia Group (EXPE) CEO Ariane Gorin recently sat down with Yahoo Finance executive editor Brian Sozzi to discuss the current state of consumer travel and Vrbo’s growth trajectory. Gorin, who took over as CEO in May after a 11-year tenure with the company, including her role as President of Expedia for Business since 2021, shared her insights on the market.
“In recent quarters, we’ve observed some downward pressure on air ticket and car rental prices, which had been rising previously. We’ve also seen a slight softening in hotel rates as we entered the third quarter, with some consumers opting for lower star-rated accommodations,” Gorin explained. “While it’s early to draw firm conclusions, we’re monitoring these trends closely.”
Gorin anticipates a modest slowdown in the third quarter but expects a rebound in the fourth quarter, maintaining a positive outlook for long-term trends. She highlighted that despite a dip in Vrbo’s performance earlier this year, the platform’s value proposition remains strong.
“The first quarter was challenging for Vrbo due to a major tech migration that impacted functionality. However, we’ve seen substantial improvements and are optimistic about the brand’s long-term prospects,” Gorin said. “The migration brought benefits like integration with our loyalty program and common testing platform, despite some initial setbacks.”
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