Expedia is betting that AI will change the way we travel

AI was the key focus at Expedia’s industry conference in Seattle this week, as the travel giant works to adopt one of the most rapidly changing and potentially exciting technologies in recent history. 

“I’ve said it 6 times, 12 times, I think that’s the rule,” CEO Peter Kern said of the buzzword at one point during his keynote speech. 

Speaking to Fast Company later in the day, CTO Rathi Murthy joked, “There’s nothing other than AI today.” 

Expedia announced last month a plug-in on ChatGPT’s website and a ChatGPT integration on its own iOS app, both of which would recommend destinations, flights, and hotels to travelers. (ChatGPT creator OpenAI CEO Sam Altman is on Expedia’s Board.) Prior to the ChatGPT craze, Expedia used AI to power customer service post-booking and price tracking. 

And it wasn’t just Expedia reps shilling AI in Seattle. NYU professor Scott Galloway, speaking at the conference, encouraged the company to devote heavy resources toward the technology. 

“I think there’s going to be one or two players in every sector, the same way Burberry positioned itself as kind of a tech company and a tech luxury brand, there’s going to be one or two companies in every sector that are known as kind of the AI-competent companies,” Galloway said. “And I think that’s a big opportunity for Expedia.” 

Indeed, large language models could revolutionize the way consumers look at travel. Instead of using a search function with filters, users could type a short prompt to an AI assistant, which would then offer a rash of travel and lodging suggestions. If a person’s flight is delayed and they need to change a hotel, or there’s bad weather coming up, AI could make that process less of a headache. 

The conference came on the heels of its first-quarter earnings report, where the company posted a nearly 19% jump in revenue as consumers return to international travel and cities. 

Speaking to Fast Company, Murthy said that right now consumers are interested in using the functions to get ideas for trips, but there’s still room to grow when it comes to converting searches into actual bookings. “I truly think ChatGPT is learning alongside us, we’re all evolving this together,” Murthy said.

The surge in the tech comes as Expedia continues its mission to unify the brands under its umbrella, including Hotels.com and Airbnb competitor Vrbo. Announced on Tuesday: It was rolling out a loyalty program called One Key next month, which would reward travelers for booking on its platforms so that they can convert those points, called OneKeyCash, to the company’s other brands. It’s a simple concept, but one that’s taken a long time for the company to bring together. 

“Many of our brands had their own loyalty programs, but with that they had their own currencies, rules—and some of our brands didn’t have loyalty programs, so it was a  pretty grueling consistency,” president of Expedia Brands Jon Gieselman said during a presentation. “The reality is that we spent billions of dollars over the years funding rewards, but none of these programs work together in one way.”