Booking Holdings Inc. BKNG is relentless in its efforts to harness the power of generative AI to elevate its trip planning and travel booking services, which serve as the company’s primary growth driver. Its shares have surged by 49.3% over the past year, outpacing the 33.1% growth of the Retail-Wholesale
sector.
In this pursuit, Booking Holdings’ subsidiary, Priceline, has integrated a range of generative AI-powered features into its Trip Intelligence suite, streamlining the trip planning and booking process for travelers, thereby saving valuable time.
The company has also introduced a series of feature enhancements for its generative AI-powered travel assistant, Penny, which now suggests customers with accommodations, travel packages, and new destinations based on their travel patterns.
The recent updates encompass features such as quick itinerary modification, live help agent chat, refund status check, and access to travel information through Penny and Gen AI itineraries.
Furthermore, the gen AI upgrades enable customers to consolidate coupons, track airline credits, and monitor flight itineraries in one centralized location. The Priceline App also provides a price watch feature, empowering customers to monitor desired flight itineraries and receive notifications about price fluctuations.
Booking Holdings is poised to attract a significant number of domestic and international travelers with this recent strategic move.
Booking Holdings Inc. Initiatives on Price and Consensus
Booking Holdings Inc. price-consensus-chart | Booking Holdings Inc. Quote
Enhancing Travel Booking With Generative AI
In addition to the recent developments, the company has launched the AI Trip Planner, introducing a novel approach to trip planning that enables users to ask questions and receive personalized recommendations through its conversational booking feature. Leveraging existing machine learning and large language models from OpenAI’s ChatGPT API, this tool enriches the company’s generative AI initiatives.
Priceline, a subsidiary of Booking Holdings, has collaborated with Alphabet’s Google Cloud to create a generative AI-powered travel assistant chatbot. This chatbot will guide customers through various aspects of travel planning and booking, providing assistance from research to trip booking directly within the chat experience.
All these generative AI efforts aimed at enhancing the online travel booking experience for customers are poised to position the company to seize growth opportunities in the online travel booking and generative AI markets. According to a Customer Market Insights report, the online travel booking market is projected to reach $1.6 trillion by 2032, registering a CAGR of 12.6% from 2023 to 2032.
A report by Fortune Business Insights indicates that the global generative AI market is expected to hit $667.96 billion by 2030, manifesting a CAGR of 47.5% during the forecast period of 2023 to 2030.
Consolidating its position in these promising markets is anticipated to drive BKNG’s overall revenue performance in the near future.
The Zacks Consensus Estimate for 2024 revenues is pegged at $23.68 billion, depicting a 11.5% year-over-year growth.
Escalating Competition
These developments are likely to bolster the competitive stance of this Zacks Rank #3 (Hold) company against competitors such as TripAdvisor TRIP, Airbnb ABNB, and Expedia Group EXPE, all of whom are also leveraging generative AI capabilities to capitalize on growth opportunities in the online travel booking market.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, Tripadvisor has introduced generative AI-powered summaries for travelers to research hotels, providing insights on popular themes and details based on past reviews.
The company has also unveiled several AI-powered updates to its ‘Trips’ planning tool, including the inclusion of hotels, known activities, proximity-prioritized itinerary recommendations, and personalized ‘For You’ recommendations based on user saves.
Meanwhile, Airbnb recently acquired GamePlanner.ai for $200 million to harness generative AI capabilities for an enriched travel booking experience.
With this acquisition, Airbnb aims to utilize the existing large language models of GamePlanner.ai for projects, creating an adaptive interface for generative AI models and customizing them as a concierge.
Expedia Group has introduced new features and products for travelers and supplier partners, including generative AI-powered questions and dynamic travel guides in Expedia, Hotels.com, and Vrbo apps, enabling users to inquire about property amenities and services.
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