AI agents have not yet changed the way Expedia customers book travel, the company’s chief executive has said, although they could eventually reshape the industry.
Ariane Gorin said the technology was proving useful for travel inspiration and planning, but had not altered customers’ behaviour when they were ready to make a booking.
“It’s a great way for people to do inspiration, to do trip planning,” Ms Gorin said. “We haven’t seen it change the way they’re actually doing booking.”
Personal AI agents from companies including Meta and OpenAI are increasingly being used for tasks such as scheduling and shopping. Their ability to compare travel options and arrange bookings could pose a challenge to established platforms such as Expedia.
Ms Gorin said Expedia was working with AI agent developers to ensure its services appeared in their results, while also seeking to understand how the systems collected information and what technical integrations were required.
She acknowledged that AI agents could eventually develop their own travel services and win market share. However, she said the complexity of customer service would be difficult to replace fully with artificial intelligence.
“People were already shopping across a number of places, so the agent can do that in a much easier way,” Ms Gorin said. But she added that customers needed confidence that the information, amenities and prices were correct, and that help would be available if something went wrong.
“I don’t think those agents are going to do it for you, and that’s why people trust Expedia and come to us,” she said.
Expedia shares fell by about 12% after the company issued weaker-than-expected fourth-quarter guidance. It forecast revenue of between 3.69 billion dollars and 3.75 billion dollars for the final three months of the year, with the midpoint below analysts’ estimates of 3.74 billion dollars.
Ms Gorin attributed the more cautious outlook to geopolitical events in the Middle East and Europe, the midterm elections and Expedia moving its autumn sale from the fourth quarter into the third.
The company nevertheless reported a strong third quarter, with total gross bookings rising by 11% and revenue increasing by 12%.
