Travel stocks sink: Expedia leads decline following US visa processing freeze

Investing.com -- Expedia Group (NASDAQ: EXPE) stock fell 5% Wednesday, leading a broader decline in travel stocks after the US State Department announced plans to suspend visa processing for individuals from 75 countries.

The visa restrictions, which target immigrants from nations including Somalia, Haiti, and Iran, sent ripples through the travel sector. Booking Holdings (NASDAQ: BKNG) dropped 4%, Tripadvisor (NASDAQ: TRIP) tumbled 7%, and Airbnb (NASDAQ: ABNB) declined 6% as investors weighed the potential impact on international travel to the United States.

According to a report from Bloomberg News, the suspension applies only to those seeking permanent residency and work authorization in the US. The State Department characterized the move as an effort to end "the abuse of America’s immigration system by those who would extract wealth from the American people," according to department spokesman Tommy Pigott.

The visa processing pause affects more than a third of the world’s nearly 200 countries, disrupting both work and vacation plans for potential travelers. The timing is particularly significant as it comes just months before the World Cup kicks off across North America, an event that typically drives substantial international tourism.

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