Expedia shares dropped 2 percent Friday after the company missed revenue estimates for the second quarter.
The company posted revenues of $2.2 billion versus a $2.25 forecast.
Expedia reported earnings of 83 cents per share, beating estimates by 5 cents.
Expedia CEO Dara Khosrowshahi noted on CNBC's "Squawk on the Street" Friday that recent terror attacks in Europe have impacted the company.
Khosrowshahi said that flight bookings rebound in two to three weeks after a crisis or attack, but there has been a shift in travel patterns.
"When you look at volumes that visit Paris, they haven't bounced back in the way that you'd expect it and some of the effect around France," Khosrowshahi said. "Nice, Belgium also have a reverberation there, so it's something we're going to watch now."
Khosrowshahi said Expedia usually bounces back and the company is keeping a close eye on the "unusual circumstance."
The travel website operator's stock has dipped 6 percent this year.
Expedia's year-to-date performance: