Booking Stock Soars 42 as AI Revolutionizes Traditional Travel Industry Yet Massive Layoffs Loom
Generally speaking, in order to judge the operations and profitability of a company, in addition to looking at healthy financial statements, attention is usually also paid to the company’s recent manpower needs. Companies with financial losses will usually first downsize significantly in order to maintain a balanced profit and loss. However, these commonly used judgments in the past cannot be applied to Booking.
According to Yahoo Finance, Booking.com’s parent company, Booking Holdings Inc (Nasdaq code BKNG), has recently become the most searched popular US stock, indicating that this tourism stock is the focus of many investors. In the past year, Booking Holdings’ stock price has risen by 42.03%, showing outstanding performance. However, Booking Holdings is preparing for a large-scale downsizing and company reorganization, and Booking’s employees will face an unhappy winter.
Booking recently launched a generative AI automated travel planning service that can replace human services. Booking and itinerary planning can be completed through AI without the need for travel agencies. This technology upgrade is a big advantage for investors and travelers who like to plan their own trips, but it also signifies a huge transformation in the tourism industry. As the awareness and personal needs of travelers change, not only will Booking’s employees’ jobs be taken over by AI, but travel agencies specializing in booking and planning itineraries may also be replaced. The global tourism industry will undergo a major transformation by 2025.
Booking launches AI Trip Planner beta version
Booking.com’s new AI Trip Planner simplifies the travel planning process using generative AI, allowing travelers to easily find their ideal accommodations. Travelers only need to enter the location, requirements, and keywords, and the system will filter out other irrelevant search results. AI customer service uses artificial intelligence to analyze problems, and the chat question-and-answer feature allows travelers to find answers to most questions. According to a press release on the official website, 41% of travelers expressed interest in using AI to help with suggestions and itinerary planning, making accommodation choices for specific cities, countries, and attractions. Booking redefines AI as “Alternative Itineraries” and finds travelers’ new needs in research reports and data. Today’s travelers focus on more personalized and privacy-oriented itineraries, which can all be accomplished through AI on the mobile app without letting others know where they have been, and they will not easily check-in on social networking sites to reveal their whereabouts.
Booking launched AI Trip Planner in the United States in June 2023, and customers in the United Kingdom, Australia, New Zealand, and Singapore can use the tool through the mobile app. In the coming months, it will also be launched in Spain, Italy, Germany, France, Poland, and the Netherlands in the local language, and a desktop version will be launched soon.
New generation travelers demand cool climate and value real-time news
According to Booking’s data analysis, in response to global warming and climate change, travelers require cool and comfortable temperatures at their destinations. 54% of travelers stated that they want to enhance nighttime activities to avoid high temperatures during the day, and 42% of travelers prefer to vacation in cooler places. 61% of travelers stated that they plan to reduce the time spent in the sun, and more than half, 57% of travelers, prefer to be active in the evening and morning. Up to 66% of people are enthusiastic about using AI to provide them with the latest travel information, delay reports, and recommendations for quieter and less busy spaces in airports and hotels.
Booking Holdings is facing significant changes in technology and human resources. The company’s strong stock performance in the past year has attracted a lot of attention from investors, but the decision to downsize and initiate company restructuring highlights the need for transformation. The core of this transformation is to optimize travel itineraries through generative AI technology, which also predicts structural changes in the entire tourism industry.
With the growing demands of the new generation of travelers for personalization, privacy, and real-time information, Booking’s AI Trip Planner has emerged to help travelers customize their itineraries according to their individual needs and provide more efficient and uninterrupted services. This not only poses challenges to the tourism employment market but may also affect the business models of the entire travel industry, with travel agencies facing the risk of being fully replaced by AI technology.
Although Booking’s financial performance is strong, the downsizing and restructuring it has undertaken to meet market demands and technological innovations indicate that the current tourism industry is at a crossroads of transformation. In the next few years, the global tourism industry will undergo larger-scale structural changes, with generative AI becoming the driving force behind this transformation.
