Expedia says AI agents are not yet shifting booking behavior as guidance weighs on shares

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Expedia AI booking behavior

Highlights

Expedia CEO Ariane Gorin states that AI agents are not yet materially changing customer booking behavior, though interest in AI trip planning is rising.
Expedia shares dropped about 12% as fourth-quarter revenue guidance of $3.69 billion to $3.75 billion came in below analyst midpoint estimates of $3.74 billion.
Gorin cites geopolitical events, midterm elections, and shifting the fall sale to Q3 as drivers of Q4 guidance moderation, despite an 11% increase in Q3 gross bookings and 12% revenue growth.

AI planning tools draw interest

As reported by CNBC, Expedia Chief Executive Ariane Gorin says the company has not yet seen artificial intelligence agents materially change how customers make travel bookings, even as early signs suggest they could influence the sector over time.

Gorin says AI tools are proving useful for trip inspiration and planning, but not yet for the final booking step. She adds that Expedia is working with major AI agents to ensure its offerings appear in results, to understand how those systems gather information and to put the required integrations in place.

She says AI agents could eventually build their own travel programs and capture market share, but argues that important parts of the travel experience remain hard to replace. Gorin points in particular to customer service, accuracy of content, amenities and pricing, and support when trips go wrong, areas where she says consumers still rely on established platforms such as Expedia.

Guidance outlook and market impact

Investor attention is also on Expedia's near-term financial outlook after the company's shares fall about 12% on Thursday. The move follows guidance released on Wednesday that points to fourth-quarter revenue of $3.69 billion to $3.75 billion, with the midpoint below analyst estimates of $3.74 billion, according to FactSet.

Gorin attributes the moderation in fourth-quarter guidance to geopolitical events in the Middle East and Europe, the midterm elections and the shift of the company's fall sale from the fourth quarter to the third quarter. Even so, she says Expedia posts a strong third quarter, with total gross bookings up 11% and revenue rising 12%.

In our earlier article on a KPMG U.S. CEO survey about AI agents, we noted that many large companies are already seeing efficiency and growth benefits, even though only a small share of executives consider the technology transformational so far. The survey also pointed to continued investment in AI infrastructure alongside hiring and retraining, reflecting that integrating agentic AI typically requires process redesign, better data readiness and new technical talent.

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