Booking Holdings and Expedia Leverage AI to Boost Growth in Travel Industry

Booking Holdings and Expedia are leveraging AI to boost growth in the travel industry, capitalizing on rising demand for global travel despite inflation and geopolitical tensions. Booking has seen a 50% year-to-date gain, outperforming the S&P 500, with gross travel bookings up 9% YoY and total revenue increasing 9% YoY in Q3. The company is investing in AI to improve customer experiences and has announced new AI-powered features for its travel assistant, Penny. Analysts expect revenue to rise by 9.6% in 2024 and 8.6% in 2025.

The travel industry is witnessing a resurgence, with Booking Holdings (BKNG) and Expedia Group (EXPE) leveraging artificial intelligence (AI) to capitalize on the rising demand for global travel despite inflation and geopolitical tensions. According to [1], Booking Holdings reported a 50% year-to-date gain, outperforming the S&P 500, with gross travel bookings up 9% year-over-year (YoY) and total revenue increasing by 9% YoY in Q3.

Booking Holdings' subsidiary, Booking.com, is at the forefront of this transformation. The company is investing heavily in AI to enhance customer experiences and streamline the booking process. For instance, their Smart Filter feature allows travelers to describe their ideal property in their own words, and AI scans the entire inventory to automatically apply the most relevant filters, saving time and effort while delivering a tailored list of properties that match their preferences [1].

Another AI-powered feature, Property Q&A, enables travelers to ask specific questions about a property, such as "Are there charging stations for electric vehicles onsite?" or "Does the hotel's pet policy accept large dogs?" AI instantly retrieves relevant information from the property listing, traveler reviews, and photos, empowering customers to make informed decisions and book with confidence [1].

Booking.com is also testing Review Summaries, designed to provide key insights about a property without the need to browse through numerous reviews. This feature will further distill reviews into tailored summaries to highlight what matters most to travelers, enabling them to make quick and informed decisions [1].

Expedia Group, too, is embracing AI to enhance its customer experience. For example, their AI-powered chatbot, named "Ask Sarah," provides personalized travel recommendations and assistance to customers [2].

The integration of AI in the travel industry is expected to continue driving growth. According to [3], analysts anticipate revenue to rise by 9.6% in 2024 and 8.6% in 2025 for Booking Holdings.

References:

[1] Booking.com Enhances Travel Planning with New AI-Powered Features for Easier, Smarter Decisions. (2024, October 31). Retrieved from https://www.bookingholdings.com/press-releases/booking-com-enhances-travel-planning-with-new-ai-powered-features-for-easier-smarter-decisions/

[2] Expedia Group. (n.d.). Ask Sarah. Retrieved from https://www.expediagroup.com/careers/us/career-opportunities/ask-sarah

[3] Booking Holdings Inc. (BKNG) Stock Price, Stock News, Quotes & Financial Data. (n.d.). Retrieved from https://www.nasdaq.com/symbol/bkng/stock-news