Aug 7 (Reuters) - Expedia EXPE.O raised its annual forecast for gross bookings and revenue growth on Thursday, amid a recovery of demand in the United States, sending the online travel company's shares up 17% in extended trading.

The Seattle-based company now expects, both, its gross bookings and revenue growth for 2025 to be between 3% to 5%, compared to prior forecast of 2% to 4%.

Despite softer travel demand in the U.S. earlier, recent trends reinforce the company's conviction that people want to travel and will continue to prioritize it, Expedia CEO Ariane Gorin said on a conference call with analysts.

"Since the beginning of July, we have seen an uptick in overall travel demand, particularly in the U.S."

Over the past month, many travel companies, including United Airlines UAL.O and Wyndham Hotels, reported a rebound in U.S. demand after President Donald Trump's tariff policies hurt travel spending in April.

Total gross bookings for the second quarter, primarily driven by growth outside of the U.S., came in at $30.4 billion, up 5% from last year. It posted quarterly booked room nights of 105.5 million, 7% higher than last year.

The online travel platform's adjusted profit rose 21% to $4.24 per share for the quarter, compared with average of analysts' estimates of $4.10 per share, according to data compiled by LSEG.

Revenue for the quarter ended June 30, rose 6% to $3.79 billion, compared to $3.56 billion, a year ago. Analysts, on average, expected $3.7 billion.