‘We’re trying hard’: How Expedia sees AI reshaping travel – and its business
Expedia is responding to the AI era by making sure it explores new ways to reach travelers – and aggressively implement it within its business.
In its newly filed annual 10-K report, the Seattle-based company added a reference to “AI generators and agents” under its competitive threats, warning that the technology could intensify competition and shift travelers to new AI-driven platforms where Expedia “may be lacking in substance.”
That’s a sharper frame than last year. The new filing also clearly names “companies that provide AI agents” as a competitor category.
The revised language reflects a potentially significant change in the way consumers access and navigate the book. Instead of typing search queries into Google or browsing travel sites directly, some travelers may rely more on AI assistants to research, compare, and book trips automatically.
On Expedia’s fourth-quarter earnings call last week, CEO Ariane Gorin said the company is “working with all the major platforms” to ensure its products stand out in AI searches and work effectively with agent browsers.
“We’re trying hard,” he said, noting that while the volume driven by AI remains small today, each integration provides data and insight into the evolution of traveler behavior.
At the same time, Expedia is building more AI capabilities directly into its products. The company is introducing chat tools and natural language features, including an AI agent within Hotels.com, as well as AI-enabled filters and Q&A tools for properties.
Gorin said he will share more later this year about how Expedia can use natural language and AI “to
allow people to go from travel planning all the way to booking.”
Expedia in October released its chat app within ChatGPT.
Within Expedia’s own operationsGorin said AI tools are already delivering “tangible benefits.” Product and engineering teams use AI to build features faster. Supplier teams are using AI to speed up inventory. And customer service teams are using AI to solve travelers’ problems faster as Expedia has reported records for self-service.
Gorin said “we are deploying AI internally to empower our teams and make our offerings to travelers and partners even more competitive.”
Meanwhile, Expedia is betting that direct relationships with travelers will remain a competitive advantage. Two-thirds of bookings already come from travelers who start directly through Expedia products, and those direct bookings are growing faster than indirect channels, Gorin said.
In an annual filing, Expedia also flagged a new concern: “agent booking capabilities may lack strong consent controls” that could significantly increase the risk of fraud – suggesting that automated booking systems could create new consent and authorization challenges.
The filing also shows that Expedia’s number of people fell 3% to 16,000 people from Dec. 31 last year. About half of its employees are in technology-related roles. Expedia recently laid off 162 employees in Washington state as part of its latest downsizing.
On the earnings call, CFO Scott Schenkel said Expedia took steps in January to “streamline” its product and technology organizations — and said the company will use “significant savings to redeploy in key areas like AI and machine learning.”
Expedia reported fourth-quarter total bookings and revenue up 11% year-over-year.
