The travel industry has been in a post-pandemic boom, but the wind may be going out of its sails. Online travel agent (OTA) Expedia (NASDAQ:EXPE) surprised the market by announcing it was firing 1,500 employees, or 9% of its workforce, because of sagging demand. The cuts will hit its bottom line by $80 million to $100 million.
It’s not alone. Booking Holdings (NASDAQ:BKNG) also said to expect a slower first-quarter result as well as weaker full-year financials. Sabre (NASDAQ:SABR) pretty much said the same thing.
Airline fares are still falling as consumers prioritize their travel plans, but high costs and repeated mechanical failures at Boeing (NYSE:BA) could dampen demand further. With doors popping off planes, landing gear breaking off and reports the plane manufacturer is failing numerous safety checks, travelers just might decide to choose some other form of transportation. The “staycation” could even make a comeback.
If demand is slowing so much,…