Expedia CEO says AI agents aren't changing booking habits — yet

Summary

• Expedia CEO Ariane Gorin stated the company has not yet observed AI agents changing customer booking behavior despite potential for industry shifts.
• Personal AI agents like Meta's Muse and OpenAI's Dots are entering the mainstream and could pose a competitive threat to traditional travel sites.
• Expedia is collaborating with AI agents to ensure its content appears in search results and to establish necessary integrations.
• Gorin acknowledged AI agents might eventually claim market share but noted industry complexities like customer service are difficult to fully replace with artificial intelligence.
• Customers trust Expedia for booking confidence regarding amenities and prices, as well as for human support when issues arise.
• Expedia shares fell approximately 12% after the company issued weaker-than-expected fourth-quarter revenue guidance.
• The company forecast fourth-quarter revenue between $3.69 billion & $3.75 billion, with a midpoint lower than analyst estimates.
• Gorin attributed the moderation in fourth-quarter guidance to geopolitical events in the Middle East & Europe, midterm elections, & the rescheduling of the fall sale to the third quarter.
• Expedia reported a strong third quarter with total gross bookings rising 11% & revenue climbing 12%.