According to the CEO of the world's second-largest online travel company, Expedia (EXPE), Ariane Gorin, artificial intelligence technology represents a "growth opportunity" for the firm rather than a threat. She emphasized that travel purchases are "high-stakes" transactions, and consumers will continue to value brand recognition, trust, and post-sales service, even if the options are not the absolute cheapest.
In its annual report for February 2026, Expedia for the first time listed generative AI and "agentic" autonomous bots as business risk factors, acknowledging that rivals and emerging startups "may deploy AI-powered travel search, planning, and booking capabilities more effectively or rapidly." The company, with a market capitalization of approximately $32 billion, derives most of its revenue from commissions and fees on hotel, flight, and car rental bookings. Analysts note that the rise of AI makes it easier for consumers to directly access and compare information from hotels and airlines, potentially undermining the intermediary role of online travel agencies or compressing their profit margins.
Gorin stated that industry participants are actively exploring paths for AI application, similar to the collaborative efforts seen during the COVID-19 pandemic when companies worked to persuade governments to reopen borders. She believes AI tools can enhance team efficiency and assist travelers in making better decisions. Data shows that in the first quarter of 2026, Expedia's gross bookings grew 13% to $35.5 billion, while revenue increased 15% to $3.4 billion.
Addressing the competitive pressure from AI, Gorin stressed that the online travel agency business involves complex processes like booking fulfillment, changes, cancellations, and complaint handling, which is fundamentally different from simply helping advertisers attract traffic. Loyalty discounts and membership benefits are part of the company's strategy to counter the AI threat, as consumers seek recognition. Meanwhile, Expedia can offer deals across brands and product types, while hotel groups like Hilton and Marriott also employ direct booking incentives to reduce commission payments to platforms.
Regarding concerns that AI startups could rapidly build online travel platforms, Gorin pointed out the significant complexity inherent in the travel industry, often making such attempts difficult to advance. However, she also acknowledged that AI has changed her work methods—meeting preparation materials can be generated with a single AI click. The company has already conducted team reductions in Seattle and Austin this year, and while efficiency gains are beneficial for profit margins, they are not positive signals for employees.
Gorin mentioned that she dedicates two hours every Sunday to AI experimentation to understand external developments and advance Expedia's own AI capabilities. However, she maintains that AI will not completely replace the travel planning process. While some users may want AI agents to handle everything, more people enjoy the planning activity itself: "The truth is, people are happiest when they're planning a trip—happier than when they're actually on the trip."