Please ensure Javascript is enabled for purposes of website accessibility

Why Expedia Group Flew More Than 6% Higher on Friday

By Eric Volkman – Jun 12, 2020 at 7:56PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company's data reveals an intriguing and perhaps very beneficial trend with its users.

What happened

After an awful Thursday, shares of online travel giant Expedia Group (EXPE -3.05%) rallied to close nearly 6.2% higher the following day. A new, optimistic report on the travel industry could very well have been the catalyst for Friday's improvement.

So what

Utilizing search data for the period of mid-April to early June culled from Expedia, consumer insight consultancy BVA BDRC found that U.S. consumers have increased their intent to travel during the summer months. According to this research, the volume of Expedia travel searches conducted by Americans rose by an average 20% on a week-over-week basis.

This reverses the previous trend, when this activity declined at steady rates in March and the early part of April.

An airplane taking off at dusk.

Image source: Getty Images.

The research also indicates an increase of 57% between April and June in customer intent to utilize an online travel agency -- such as Expedia -- to help book a trip.

A major factor in this recovery is the reopening of the economy in many parts of the world following widespread business shutdowns in the wake of the SARS-CoV-2 coronavirus. Another factor is the "stay-in-place" measures that kept people essentially quarantined at home.

Now what

Although search data can be revealing, we should keep in mind it's merely an indicator of potential improvement. Only if and when those searchers book trips through the site will the company benefit. That said, this trend could very well be Expedia's friend if it results in a meaningful recovery in actual bookings.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Expedia Stock Quote
Expedia
EXPE
$98.99 (-3.05%) $-3.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.