Travel Company Stocks Jump as AI Chatbot Pulls Back from Direct Booking Plans

Major online travel companies saw their stock prices soar Thursday following reports that OpenAI is stepping away from plans to allow direct travel bookings through ChatGPT. The news relieved investor concerns that AI chatbots might eventually eliminate the need for traditional travel booking websites.

Stock prices for major online travel companies jumped significantly Thursday following news that OpenAI is retreating from plans to allow customers to book travel directly through its ChatGPT platform, calming investor worries about AI technology potentially eliminating travel booking intermediaries.

Expedia’s stock climbed more than 12%, while Booking Holdings saw an 8% increase and Tripadvisor gained 5%.

The stock surge came after The Information published a report indicating that OpenAI discovered ChatGPT users were using the chatbot to research travel options but weren’t following through with actual purchases on the platform.

According to the report, which cited an OpenAI representative, the artificial intelligence company will now concentrate on enabling purchases through individual third-party applications that connect to ChatGPT.

OpenAI has not responded to requests for comment from Reuters.

Financial experts and market watchers have expressed growing worry that AI-powered tools might eventually become the primary method for travel research and reservations, potentially eliminating the need for traditional online travel booking platforms.

Bernstein analyst Richard Clarke described the OpenAI development as moderately beneficial for online travel companies in his analysis.

“This means that Booking and Expedia can continue to get in front of consumers on AI-platforms, lowering the risk of disintermediation,” Clarke added.

Both Expedia and Booking Holdings were early adopters when OpenAI introduced its plugin system in 2023, becoming some of the first businesses to connect with ChatGPT.