Expedia Group (EXPE) saw its stock plummet 5.63% in pre-market trading on Wednesday, as concerns about the travel industry's outlook and potential weakening consumer demand weighed heavily on investor sentiment. The significant drop comes in the wake of Booking Holdings' earnings report, which, despite beating expectations, raised questions about the stability of the travel sector.

While Booking Holdings reported strong first-quarter results, exceeding analyst expectations for both earnings per share and revenue, the company widened its guidance range for constant currency growth. This adjustment reflects "increased uncertainty in the geopolitical and macroeconomic environment," according to the company. The news has sent ripples through the travel industry, affecting other online travel agencies like Expedia.

Investors appear to be particularly concerned about the potential softening 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 that investors are taking 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 broader travel industry is also showing signs of weakening demand, as evidenced by Norwegian Cruise Line Holdings noting a "softening" in 12-month forward bookings in its latest earnings report.