According to data compiled by Wedbush, although current travel metrics remain below 2024 levels, travel trends are gradually improving, suggesting the industry's overall performance this year could exceed initial expectations. However, Wedbush analyst Scott DeWitt noted that recovery progress within the industry remains uneven: international travel demand stays robust, while hotel booking trends (including alternative accommodations) showed deceleration in July.

Taking Airbnb, Inc. (ABNB.US) as an example, the company released better-than-expected third-quarter guidance this month, with strong summer travel demand performance. However, it warned that growth rates might be difficult to sustain later this year due to challenging year-over-year comparisons. Data indicates that its implied performance trajectory falls below management guidance and market consensus expectations (consensus anticipated stable growth in nights booked). Wedbush projects the company's third-quarter nights booked to grow 7.1% year-over-year, down from 7.4% in the second quarter.

Booking Holdings (BKNG.US) continues to experience healthy demand growth in European markets, though at a decelerating pace: July nights booked increased 5% year-over-year, representing a 500 basis point decline from the second quarter's 10% year-over-year growth rate. Travel trends in regions outside the United States weakened compared to the second quarter, with overall performance generally meeting expectations. This suggests Booking's third-quarter nights booked year-over-year growth will decline from the second quarter's 7.7% to 5.5%.

Finally, relative to initial expectations, Expedia's (EXPE.US) travel trends appeared more optimistic. In July, its alternative accommodations (primarily Vrbo business) nights booked year-over-year growth declined approximately 300 basis points from the second quarter to 1%, while U.S. hotel data remained flat compared to previous months, indicating July revenue per available room (RevPAR) showed only modest negative growth.

Air travel showed slight improvement at the beginning of the third quarter, averaging approximately 1% year-over-year growth, compared to near-flat growth in the second quarter. Wedbush data reveals that inbound air travel from Europe to the United States declined 3% year-over-year in July, while outbound air travel from the United States to Europe accelerated from 4% year-over-year growth in the second quarter to 6%.