Can AI replace Expedia? Its CEO says travel is more complicated than that

Can AI replace Expedia? Its CEO says travel is more complicated than that Generative AI is reshaping travel, but Expedia chief executive Ariane Gorin says travellers will continue to value trusted booking platforms. Investors, employees, hotels and airlines have become increasingly single-minded in their conversations with Expedia chief executive Ariane Gorin. Everyone wants to talk about AI. In its annual report in February, Expedia for the first time cited advances in generative AI and the rise of “agentic” autonomous bots capable of actions such as booking holidays as a risk to its business. Rival technology companies and new start-ups “may deploy AI-driven travel search, planning, and booking capabilities more effectively or rapidly than we can”, it admitted. Expedia, the world’s second-largest online travel company after Booking Holdings, with a market value of about US$32 billion (S$41.31 billion), makes most of its money by charging commissions and fees on hotel, flight and rental car reservations. But the rise of AI is making it easier to access and compare hotels and airlines directly, and some analysts say this could allow holidaymakers to bypass online travel agents or at least increase competition and suppress their margins. Gorin insists the technology will be “a growth opportunity” that will “give our teams superpowers and . . . help travellers make better decisions”. In the first quarter of 2026, Expedia’s gross bookings jumped by 13 per cent to US$35.5 billion, while revenue rose 15 per cent to US$3.4 billion. “Everyone in the industry is figuring out how we can use AI . . . and I feel like it’s similar to what happened in Covid, where you had companies that were competing against each other actually come together and say, ‘You know what: how do we work together to convince governments to open borders?’” she says. “There’s something similar right now in the industry as I talk to colleagues and peers where people [are] really trying to say, ‘What are you finding? How are you using it? What are the real opportunities?’ Because there’s so much hype out there.” The French-American dual national was appointed chief executive in May 2024, taking charge of Expedia’s more than 16,000 employees and network of travel-booking sites — including the three crown-jewel brands Expedia, Hotels.com and short-term rental platform Vrbo — just as global adoption of AI accelerated. She was recruited to the company in 2013 after a decade working for Microsoft, which launched Expedia in 1996 before spinning it out a few years later, and previously led Expedia’s business-to-business arm, then its fastest-growing segment, from London. Taking the top job meant relocating to the company’s headquarters in Seattle, where one of Gorin’s first actions was to move the office her predecessor had occupied deep in one of the building’s wings. Her new office is “right in the centre of the campus” with a large window overlooking a communal area, a change aimed at being present for staff. “I see people and they see me. We can run into each other.” One employee describes it as a “fishbowl”. People are happiest when they’re planning the trip.” “Everyone knows the role of the CEO is to set the strategy and build the right team,” says Gorin. “But I think the biggest thing I’ve learnt is that the role of the CEO is also setting the culture.” She is careful not to overstep. “When you lead an organisation, particularly if you grew up in that organisation, you know how to do various roles.” But, even though she would “get an adrenaline hit” from signing a marketing contract: “I have to think about the things that only I can do, as chief executive.” Gorin’s first big goal was to turn around the consumer-facing side of Expedia, which was “not in as healthy a state as it should be”. Vrbo and Hotels.com were shrinking after a heavy focus on technological upgrades meant “losing what made each brand distinct”, she says. Her reboot plan included appointing new executive teams for each division and bringing a clearer focus to each product. Vrbo and Hotels.com returned to growth before the end of 2025 and the company’s business-to-consumer revenues grew 2.1 per cent last year to US$9.5 billion. That was faster than 2024’s 1.5 per cent growth but below the 18 per cent that pushed Expedia’s B2B revenues to US$4.8 billion. Still, recent fears about AI disruption and travel uncertainty due to the conflict in the Middle East have worried investors. Expedia’s share price has doubled during Gorin’s time as chief executive, but is down 5 per cent this year. Booking, which owns brands including Booking.com, Priceline and Agoda, is down 15 per cent. Online travel agencies are facing a “battle for traffic” with AI companies, Bank of America analyst Justin Post wrote in a note. Gorin is confident investors are misreading the company’s prospects. Travel is typically a “high-stakes purchase” and consumers will continue to value the brand recognition, trust and support services offered by Expedia, she says, even if it is not the cheapest option: “Travel is not like buying a T-shirt.” She believes there is “a big difference between being in an advertising business, where you are helping advertisers attract traffic, and doing the actual fulfilment of a booking”. Expedia, for example, has to deal with amendments, cancellations and practical complaints: “If you book something and then it turns out, oh, the pool is closed, and we didn’t tell you that upfront, you’re not going to be happy.” Loyalty discounts and benefits are part of its defence against the threat of AI. “People want to be recognised,” says the chief executive. Hotel groups such as Hilton and Marriott also offer incentives and bonuses to persuade customers to book directly through their own sites and save on commissions paid to platforms such as Expedia. Gorin stresses that Expedia can offer these across all kinds of bookings — not just a single type of product or brand of hotel. “In this massive industry, there are already a lot of different ways that people can book.” A DAY IN THE LIFE OF ARIANE GORIN Mornings I get up at 5.30am, usually work out and read the news before heading to the office. This gives me energy for whatever the day brings. Workday Start with two hours of unscheduled, meeting-free time. It’s when I do my best thinking, reflecting on what travellers and partners need, and the problems I should be focused on. Once the day gets going, it moves. I try to do at least one meeting a day while walking — Expedia Group’s campus is on the waterfront in Seattle and we have a gorgeous walking trail. I often eat lunch in our cafeteria. I learn a lot from conversations with people across the company: what teams are working through, where they’re stuck, what they’re excited about. It keeps me grounded in what’s happening. Evenings and weekends After work, I often go for a walk, have dinner with my husband and then watch a show or read a novel. On weekends I often do yoga, cook and spend lots of time on the phone with our adult children, friends and family. Since our children are grown now, we take more spontaneous weekend trips and have been exploring the beautiful hikes of the Pacific Northwest. What about the risk that new start-ups could use advanced AI to speed-run the construction of an online travel agent platform? “I’ve been in the industry now for 13 years, and you always hear people say, ‘Oh, well, you know, it’d be really easy to just build a travel start-up,’” says Gorin. “Then people start to do it and they realise there’s a lot of complexity.” Even so, she admits AI has transformed her own role. Her notes for meetings with hotel partners — including personal and professional histories and suggestions for new business opportunities — are increasingly prepared by AI: “Something that might have taken an hour for an account manager in the past, now it’s a click of a button.” That kind of efficiency boost could be good news for margins, even if it is not necessarily positive for Expedia’s workforce, which has already faced cuts to teams in Seattle and Austin this year. Gorin says she blocks out two hours every Sunday just to experiment with AI. “I think a big part of my job in setting the strategy . . . is being aware of what’s going on externally. So I meet with partners and I meet colleagues in the industry, obviously, but there’s a lot that’s just playing with our products and playing with competitor products.” But even as she pushes advances in Expedia’s own AI features — including conversational trip planners — Gorin insists AI will not take over holiday planning entirely: “Some people will want to be end-to-end agentic and we will be there for them [but] a lot of people actually enjoy the process of planning a trip. In fact, people are happiest when they’re planning the trip — they’re even happier than when they’re on it.”