The travel slowdown is real, but things may pick up over the holidays

Your suitcases may be gathering dust for the next few months.

With a more cautious consumer and high travel costs, some of the country’s biggest travel companies are predicting a summer slowdown.

New Expedia ( EXPE ) Group CEO Ariane Gorin told me on Yahoo Finance Market Domination that the company has seen a “slowdown” in demand that could extend deep into the current quarter. Demand is expected to improve for the holiday season or Expedia’s fourth quarter.

Gorin officially took over the role from longtime CEO Peter Kern on May 13. Kern remains on Expedia’s board of directors as vice chairman.

The drop in demand was relatively shallow and does not suggest a recession is in the offing, but the change in tone from top leaders was noticeable.

Airbnb ( ABNB ) warned that investors should expect a moderation in year-over-year growth in the nights and experiences category for this quarter. The company also warned that it is “noting shorter delivery times globally and some signs of slowing demand from US guests.”

The reduction is being seen in both Europe and North America, Airbnb CFO Ellie Mertz told analysts on the company’s earnings call.

Disney has taken a cautious note on theme park demand for the next few quarters as consumers become more discerning about discretionary spending.

“We’re definitely seeing consumers behaving in a way — I wouldn’t necessarily call it regressive — watching their money a little bit more,” Hugh Johnston, Disney’s chief financial officer, told me on Yahoo Finance’s Morning Brief.

As for Gorin, he’s doubling down on marketing for brands like Hotels.com and Vrbo as he looks for new growth opportunities overseas. That’s after Kern spent several years cutting expenses, refocusing the company, overhauling the technology stack and launching the OneKey rewards program.

Expedia is showing signs of turning the corner.

Second quarter sales and adjusted net income increased 6% and 10%, respectively, year over year. Room nights booked increased by 10%. Vrbo’s overall performance – which has been struggling – improved sequentially.

The company has repurchased $1.2 billion of its stock to date.

“Expedia reported solid second-quarter results driven by the strength of the Expedia brand and the improvement of Vrbo, and despite a macroeconomic downturn in July, the lower outlook for the full year came in better than feared,” wrote JPMorgan analyst Doug Anmuth in a note to clients.

Anmuth rated Expedia’s stock at neutral.

Shares of Expedia have risen 13% since Gorin took over as CEO, outpacing the S&P 500’s 1.8% gain.

The story continues

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