Expedia Shares Drop After Weak Revenue Guidance
Expedia CEO Ariane Gorin says AI agents aid trip planning but have not yet changed how customers book travel as shares fall 12 percent.
Expedia shares fell 12 percent on Thursday after the company issued fourth-quarter revenue guidance between $3.69 billion and $3.75 billion, missing analyst expectations. Ariane Gorin, CEO of Expedia, attributed the moderated outlook to the timing of the company's fall sale, midterm elections, and geopolitical instability in Europe and the Middle East.
Addressing the rise of artificial intelligence, Gorin stated that AI agents are useful for inspiration and trip planning but have not yet changed the way customers actually book travel. She acknowledged that AI agents developed by companies such as Meta and OpenAI could eventually capture market share. However, she argued that Expedia maintains a competitive advantage due to the complexities of customer service and the level of confidence required for bookings.
To counter potential threats from AI-driven competitors, Expedia is integrating its services with AI agents to ensure its offerings appear in AI-generated results.
