Expedia Group (EXPE) saw its stock plummet 5.63% in pre-market trading on Wednesday, as investor sentiment turned negative following Booking Holdings' earnings report and growing concerns about the travel industry's outlook. The significant drop reflects mounting worries about potential weakening consumer demand in the travel sector.

While Booking Holdings reported strong first-quarter results, exceeding analyst expectations for both earnings per share and revenue, the company's decision to widen its guidance range for constant currency growth raised red flags. This adjustment was attributed to "increased uncertainty in the geopolitical and macroeconomic environment," sending ripples through the travel industry and affecting other online travel agencies like Expedia.

Investors appear particularly concerned about the stability of consumer demand for travel services. Although Booking Holdings' CEO Glenn Fogel stated that the company was seeing stable levels of global leisure travel demand so far in the second quarter, the market reaction suggests a more cautious stance. With Expedia set to report its own earnings soon, the pre-market plunge indicates that traders are anticipating potential challenges for the company in the current economic climate. The impact is not limited to Expedia, as other travel-related stocks like Airbnb also experienced declines in pre-market trading.