Expedia (EXPE) CEO: AI Not Yet Changing Booking Habits, Q4 Revenue Guidance Lower

Expedia CEO Ariane Gorin said the company has not yet seen artificial intelligence (AI) agents change how customers book trips, though AI shows potential for inspiration and trip planning. Gorin noted AI agents offer easier shopping across platforms but have not replaced Expedia’s role in ensuring reliable booking, customer service, and accurate content.

Expedia’s shares fell about 12% following weaker-than-expected Q4 revenue guidance. The company forecast Q4 revenue between $3.69 billion and $3.75 billion, with a midpoint below analyst estimates of $3.74 billion. Gorin cited geopolitical events in the Middle East and Europe, U.S. midterm elections, and timing shifts of the company’s fall sale as reasons for the revenue moderation. Expedia reported strong Q3 results, with total gross bookings up 11% and revenue rising 12%.

This matters because Expedia is working with AI agents to appear in their results and exploring integrations, indicating early adaptation to AI’s growing impact on travel planning. However, the slower impact of AI on actual bookings and Expedia’s emphasis on customer service highlight challenges in AI replacing human-led support and trust. The Q4 revenue guidance cut reflects near-term risks from geopolitical and timing factors, which could influence Expedia’s financial performance.