TL;DR:
- Expedia aims to lead in travel planning by using AI to initiate travel searches on its platform.
- AI will offer personalized travel recommendations based on user data and Expedia’s vast travel information library.
- The goal is to streamline the travel planning process, reducing reliance on external search engines.
- Expedia seeks to cut out the middleman, such as Google, to increase revenue.
- The company has already implemented AI in various aspects, including customer service and property descriptions.
- The broader trend of AI-driven travel planning is reshaping the travel industry.
Main AI News:
Expedia, a prominent player in the travel industry, is embarking on a transformative journey to reshape the way people plan their trips. The company’s vision revolves around leveraging artificial intelligence (AI) to entice travelers to initiate their travel explorations on its platform, bypassing the traditional route of using external search engines. While Expedia has already harnessed AI for select customer service features and to aid property owners in effectively describing their accommodations, their ambitions extend much further.
Rajesh Naidu, the Chief Architect and Head of Data Management at Expedia, envisions a future where AI becomes the cornerstone of travel planning. The ultimate goal is to employ AI-driven recommendations, drawing insights from Expedia’s extensive library of flight and hotel information and informed by users’ travel preferences. This entails utilizing the colossal dataset of 70 petabytes that Expedia has amassed over the years. Naidu explains, “By training large language models on our data, we can eventually offer tailored recommendations for travel destinations, accommodations, activities, and continuously refine and personalize the entire travel experience.”
The typical traveler’s journey begins with a search engine query for a destination, followed by a visit to services like Expedia for booking travel and accommodations. Expedia aims to streamline this process further, nudging users to commence and conclude their travel planning within their ecosystem. While there’s nothing inherently wrong with resorting to a search engine, Expedia envisions a more seamless and efficient approach.
This strategic move aligns with the broader trend of AI-powered travel assistants, where the process of booking a flight could be as simple as stating your preferred flight time and airline, and the AI takes care of the rest. While Expedia isn’t at this level of automation yet, its goal mirrors the traditional role of travel agents, albeit in a digital landscape.
Expedia’s aspirations to reduce its reliance on Google for traffic and advertising revenue were highlighted during the US v. Google antitrust trial by their former Chief Financial Officer, Jeff Hurst. Despite increasing payments to Google for ad space, Expedia failed to witness a significant uptick in traffic after Google started displaying flight and hotel information. Vertical search engines, specializing in specific niches like travel, have often grappled with their relationship with Google. By circumventing Google’s influence, Expedia aims to boost its revenue.
In pursuit of this transformation, Expedia has already taken significant steps. While comprehensive personalized travel planning remains a work in progress, the company has long used machine learning algorithms to track flight prices and facilitate hotel searches. In March 2020, they introduced the Virtual Assistant tool to assist customers with post-booking queries, and in April, they unveiled a ChatGPT-powered customer service chatbot plugin. Additionally, Expedia operates Vrbo, a vacation rental website that harnesses AI to enhance property descriptions and evaluate photo quality.
Expedia’s strategic shift towards AI-driven travel planning is indicative of an industry-wide trend. Competitors like Airbnb have also recognized the potential of AI, which is evident in their acquisition of AI-powered trip-planning startup Gameplanner.AI in November. As the travel industry evolves, Expedia is positioning itself at the forefront of innovation, aiming to redefine how travelers plan their journeys in the digital age.
Conclusion:
Expedia’s strategic shift towards AI-driven travel planning signifies a significant move in the travel industry. By offering personalized recommendations and reducing reliance on external search engines, Expedia aims to enhance user experience and boost its revenue. This shift also mirrors the broader trend of AI-driven innovations in the travel sector, indicating a market-wide transformation in how travelers plan their journeys.
