Expedia Group has integrated travel booking capabilities into AI platforms like ChatGPT and Claude, signaling a significant shift in its operational strategy. During the company's first-quarter earnings call, CEO Ariane Gorin emphasized the importance of AI in managing over 30% of self-serve customer support interactions, as well as in driving new customer acquisition through chatbots.
The Seattle-based online travel agency reported a revenue increase of $3.43 billion, marking a 15% year-over-year growth, with adjusted earnings reaching $542 million, an 83% rise. The profit margin for the quarter stood at 15.8%, the highest in 15 years. Despite these strong results, Expedia's stock fell by approximately 6.5% as investors reacted to the unchanged full-year guidance.
In addition to its primary Expedia portal, the company operates brands such as Hotels.com and Vrbo, and recently became the exclusive hotel partner for Uber. Gorin acknowledged the competitive threat posed by AI platforms, stating that while AI presents opportunities, it is also crucial for the company to adapt to potential disruptions in the booking process.