Expedia Group is navigating the rapidly evolving landscape of artificial intelligence, both by integrating with emerging AI platforms and by reinforcing its own direct-to-consumer relationships. The company highlighted its strategy during its earnings call, signaling a dual approach to capitalize on the opportunities presented by generative AI while mitigating potential risks.
CEO Ariane Gorin emphasized that the rise of generative AI is creating “new growth opportunities” for Expedia Group. The company is actively collaborating with major AI platforms to ensure its brands – including Expedia, Hotels.com, and Vrbo – are prominently featured in AI-powered search results and seamlessly integrated with agentic browsers. This proactive engagement aims to capture traveler demand as AI increasingly influences trip discovery and planning.
Expedia’s strategy extends beyond simply appearing in AI search results. The company is also leveraging these integrations to gather data and insights into evolving consumer behaviors. Gorin noted that while current volumes are still relatively small, each integration provides valuable learnings about how to best showcase its brands and adapt to changing preferences. These insights are then used to inform the development of AI-powered experiences directly on Expedia Group’s own platforms.
The company’s commitment to AI is underscored by its recent partnerships, including one with Amazon. In , Amazon announced that Expedia was building agentic AI capabilities for its Alexa+ virtual assistant. This integration allows Expedia to reach customers directly through a popular voice-activated platform, further expanding its digital footprint.
However, Expedia Group is not solely focused on embracing AI; it also recognizes the potential competitive threats posed by “emerging AI-powered platforms.” The company identified this as a potential risk factor in its earnings presentation, acknowledging that new AI entrants could impact its future results. This cautious acknowledgement reflects a broader industry concern about the disruptive potential of AI in the travel sector.
Recent data suggests that AI-powered travel planning is gaining traction among consumers. A report from PYMNTS Intelligence found that nearly 25% of consumers are comfortable allowing an AI agent to plan their travel, a significant figure given the high-stakes and multi-transactional nature of travel arrangements. This growing acceptance of AI in travel underscores the importance of Expedia’s proactive approach.
Despite the enthusiasm surrounding AI, Expedia Group remains focused on its core strengths: building trust and providing reliable customer service. Gorin highlighted the importance of offering proprietary verified reviews and readily available support – via app or phone – to address traveler concerns. She pointed to the company’s ability to answer phone calls in an average of one to three minutes during recent disruptions, such as winter storms and a government shutdown, as evidence of its commitment to customer support.
“Travelers want to know that we’ve got their back,” Gorin said during the earnings call. “So, of course, continuing to enhance the loyalty program is one piece of our offer, but there’s a lot of different parts that we believe make travelers want to continue a deep relationship with us.”
This emphasis on customer service and trust is particularly crucial in the travel industry, where unforeseen issues can disrupt plans and create significant inconvenience. Expedia Group believes that its established reputation for reliability, combined with its ongoing investments in AI, will position it favorably in the evolving travel landscape.
The company’s Q4 earnings release indicated a continued focus on its B2B travel business and advertising network, alongside its flagship consumer brands. Expedia TAAP (Travel Agent Affiliate Program) is currently testing an Insurance API, demonstrating a commitment to providing value-added services to its travel agent partners. This expansion of its B2B platform further diversifies Expedia Group’s revenue streams and strengthens its position within the broader travel ecosystem.
Expedia Group’s overall strategy appears to be one of cautious optimism. The company is actively embracing the opportunities presented by AI while simultaneously acknowledging the potential risks and reinforcing its core strengths. By investing in both AI integration and customer service, Expedia Group aims to navigate the changing travel landscape and maintain its position as a leading online travel agency.
The company’s financial performance in showed a 9% year-over-year revenue increase, suggesting that its current strategies are yielding positive results. However, the long-term impact of AI on Expedia Group’s business remains to be seen, and the company will continue to monitor the evolving landscape closely.
