Expedia is betting on the transformative potential of Artificial Intelligence
Expedia, the travel giant, has placed a significant bet on the transformative potential of artificial intelligence (AI) in the way we travel. AI took center stage at Expedia’s industry conference in Seattle, with CEO Peter Kern acknowledging its importance during his keynote speech. CTO Rathi Murthy further emphasized the company’s focus on AI, stating, “There’s nothing other than AI today.”
Expedia has been actively incorporating AI into its services. Last month, the company announced the integration of ChatGPT, an AI-powered chatbot, on its website and iOS app. This integration enables the chatbot to recommend destinations, flights, and hotels to travelers. Expedia has previously utilized AI for customer service post-booking and price tracking.
The enthusiasm for AI was not limited to Expedia representatives. NYU professor Scott Galloway, speaking at the conference, encouraged Expedia to invest heavily in the technology, predicting that certain companies would emerge as the leading AI players in each sector. Galloway highlighted the opportunity for Expedia to position itself as an AI-competent company in the travel industry.
Large language models, such as ChatGPT, have the potential to revolutionize the travel experience. Instead of using traditional search functions with filters, users can engage with AI assistants by typing short prompts and receiving personalized travel suggestions. AI could also streamline processes like changing hotels due to flight delays or weather conditions, making travel planning less cumbersome.
Expedia’s industry conference followed its first-quarter earnings report, which revealed a nearly 19% increase in revenue as international travel and cities began to rebound. CTO Rathi Murthy highlighted that while consumers are currently using AI functions to generate trip ideas, there is still room for growth in converting searches into actual bookings. She expressed that ChatGPT is an evolving tool that is learning alongside the company.
Expedia is concurrently working on unifying the brands under its umbrella, including Hotels.com and Vrbo, an Airbnb competitor. The company recently announced the upcoming launch of a loyalty program called One Key, which will reward travelers for bookings and allow them to convert earned points, known as OneKeyCash, across the company’s various brands. Expedia aims to create consistency and cohesion among its loyalty programs, which have historically operated independently.
As Expedia continues to invest in AI and consolidate its brands, it aims to leverage technology to enhance the travel experience and foster customer loyalty.