expedia CEO Ariane Gorin said Thursday that while the company has yet to see artificial intelligence agents impacting the way customers book, early signs point to potential changes in the industry.
“This is a great way for people to get inspired and plan their travels,” Golin said in an interview with CNBC. “We don’t see any change in how people actually book.”
Comments are sent like a personal AI agent. meta Muse and OpenAI’s Dots have entered the mainstream, promising to tackle everything from managing daily Americans’ schedules to shopping. Opportunities in travel planning and booking can pose a competitive threat to traditional sites like Expedia.
Gorin said Expedia is “working with all of our agents” to make sure the AI results reflect that, understand how the agents get the information, and ensure the company has the necessary integrations.
Although he acknowledged that AI agents could develop their own travel programs and ultimately gain market share, he said it would be difficult to fully replace complexities within the industry (for example, customer service) with artificial intelligence.
“People were already shopping in different places, so agents can do that in a much easier way,” Golin said. “But when it comes to actually booking, you can be confident that the content on offer is right, the amenities are right, the price is right, and if something goes wrong, someone will actually fix it for you or pick up the phone and take care of you right away, but you can’t trust those agents to do it for you. That’s why people trust Expedia and come to us.”
Expedia shares fell about 12% on Thursday after the company issued a weaker-than-expected outlook for the fourth quarter on Wednesday. The company expects sales for the final three months of the year to be between $3.69 billion and $3.75 billion, lower than the median estimate of $3.74 billion, according to FactSet.
Gorin attributed Expedia’s “moderate” fourth-quarter guidance to “geopolitical events in the Middle East and Europe,” the midterm elections, and the company moving its fall sale from Q4 to Q3. However, he noted that the company reported a strong third quarter as gross bookings increased 11% and revenue increased 12%.
