Expedia's Trump Slump, Choice's Budget Boost and Sphere’s Cheaper Offspring

Today’s podcast talks about Expedia’s small slump, Choice Hotels’ budget bump, and the Sphere’s plans for smaller expansions.

Good morning from Skift. It’s Friday, May 9. Here’s what you need to know about the business of travel today.

Expedia Group is feeling the effects of lower-than-expected travel demand to the U.S. this year, writes Travel Technology Reporter Justin Dawes.

The company said on Thursday that its bookings and revenue growth were on the lower end of its expected range due to the softening travel demand. Expedia executives said travel to the U.S. dropped 7% in the first quarter while inbound bookings from Canada fell 30%.

Expedia is also lowering its full-year gross bookings and revenue growth expectations from a range of 4% to 6% to a range of 2% to 4%.

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Next, Choice Hotels has cut its revenue forecast, but the hotel franchiser is getting a boost from its budget brands, writes Senior Hospitality Editor Sean O’Neill.

Choice said on Thursday it projects its revenue per available room in the U.S. will range between a 1% drop and 1% growth. That’s down from its previous forecast of 1-2% growth. But Choice’s budget hotel brands in the U.S. saw a roughly 7% jump in revenue per available room during the first quarter.

CEO Patrick Pacious attributed the strong performance of its budget brands to factors such as strong employment and low gas prices.

Finally, Sphere Entertainment Co. is planning to build smaller and cheaper venues to make expansion easier, writes Middle East Reporter Josh Corder.

CEO James Dolan said the company is in the process of designing a smaller Sphere deployable in markets inside and outside the U.S. Dolan added its strategy is to build a less expensive Sphere with a return on investment that would excite investors.

Corder notes Sphere Entertainment hasn’t named any markets where it’s looking to open venues after having confirmed plans last October for a Sphere in Abu Dhabi. The company's Sphere in Las Vegas cost about $2.3 billion to construct and has around 20,000 seats.