Expedia’s shares dropped 6.8% after the quarter, reflecting investor concerns about incipient deceleration and cautious commentary on macro headwinds despite solid execution earlier in the quarter and margin expansion.

• Bookings grew 13% and revenue increased 15% year-over-year, but growth slowed noticeably in March due to geopolitical tensions and travel advisories.
• First quarter margin expanded by nearly 6 points, reaching the highest Q1 level in 15 years, driven by ongoing operational efficiencies.
• Domestic U.S. room nights held steady, but softness in Mexico and reduced promotional activity from some B2B partners limited upside.
• AI investments are highlighted as a future growth lever, improving personalization, supply onboarding, and customer service automation, though impact on bookings remains nascent.
• Mid- and higher-tier loyalty member growth signals potential customer quality improvement but was not enough to offset near-term macro risks in the outlook.