The Impact of AI on Expedia Group’s Position in the Travel Industry

3 min read

Expedia Group hosted its recent annual partner conference, Explore, which generated significant interest due to the prominent role of AI in the travel industry. According to CEO Ariane Gorin, the widespread use of AI is a highly compelling topic. Expedia, ranked No. 2 on Travel Weekly’s Power List, has been leveraging various forms of AI for several years, including applications in fraud prevention and search result sorting.

A major highlight of the conference was the introduction of Romie, an AI-powered travel assistant utilizing generative AI technology. Compared to competitors like Booking Holdings, Expedia demonstrates a strong position in AI usage, according to Michael Coletta, Phocuswright’s senior manager of research and innovation. Coletta noted that Expedia has been more aggressive in utilizing generative AI technology compared to other Western OTAs, though this may not hold true in comparison to certain Asian companies like Trip.com.

Robert Cole, Phocuswright’s senior research analyst, added that Expedia’s recent efforts to merge all its brands onto a single technology platform could provide an advantage in AI utilization. According to Cole, this integration enables Expedia to have a central data pool for AI to learn from and use.

Shiyi Pickrell, senior vice president of data and AI at Expedia, highlighted how technology unification has allowed the company to be more agile in AI development. Expedia has not only used AI for consumer-facing and internal applications, but also made AI-powered tools available to industry partners. For instance, Scout, a machine learning system, provides hotel recommendations based on traveller interactions with a property and the strategies of similar properties in the marketplace.

During Explore, Expedia presented Romie, which combines the functions of a personal assistant and a travel agent. However, analysts expressed caution about the product, raising questions about its impact on consumer behavior. Despite AI advancements, human travel advisors continue to excel in meeting specific traveller preferences, a point Expedia has acknowledged by strengthening its investment in human travel advisors through its Travel Agent Affiliate Program.

While AI is undoubtedly leaving its mark on the travel industry, Expedia acknowledges the lasting value of human interaction in the offline world. As CEO Ariane Gorin stated, there will always be a market segment that prefers traditional in-person interactions with travel advisors.

In conclusion, Expedia’s sustained investment and strategic use of AI have strengthened its position in the competitive travel industry. The company’s focus on unifying technology and developing user-friendly AI tools for consumers and industry partners demonstrates its forward-thinking approach. As AI continues to evolve, Expedia’s ability to harness its power while maintaining a human touch will be crucial in preserving its standing in the market.