Industries , Travel & Hospitality

Expedia's AI Vision: Future of Travel, One Insight at a Time

"Expedia, help me plan a 7-day trip to Italy with a focus on history and food." Within seconds, Expedia's artificial intelligence tool delivers a detailed itinerary: a morning visit to the ancient ruins of Rome, lunch at a hidden trattoria, evening wine tasting in Tuscany and a walk on the seamless paths along Venice's iconic canals. This is no longer travel planning; it is a revolution.

Expedia, once known simply as an online travel agency, has grown into a global powerhouse of innovation, changing the way people explore the world. What's behind it? AI paired with generative AI, which simplifies the complexity of travel planning, eliminates pain points and turns every single trip into an experience.

Perhaps that is the reason why Expedia's Q3-2024 performance saw a 9% growth in booked room nights, a 7% increase in total gross bookings and a 3% rise in revenue, along with strong B2B growth and significant share repurchases.

Data Explosion Driving Innovation

Behind this magic is one data juggernaut - a whopping 70-petabyte repository of traveler information residing on the AWS cloud that fuels hundreds of billions of AI predictions year after year. This repository helps Expedia deliver personalized travel experiences.

"There are around 1.2 quadrillion variables across hotels alone when you factor in room types, dates and prices," said Rathi Murthy, former CTO and president of product and technology at Expedia. "We don't process this complexity; we exploit it to craft smarter, faster and more intuitive solutions for travelers."

For a company that deals in billions of searches, clicks and behavioral patterns each day, Expedia's AI models listen to a lot of noise and turn them into actionable insights. With 350 active models powering end-to-end journey planning, the company can anticipate traveler needs before they're even voiced, turning data into experiences.

AI Innovations Built for Travelers

Expedia has made AI and gen AI central to its strategy, rolling out features designed to tackle some of the biggest challenges, from trip planning to dealing with disruptions.

Recently, Expedia rolled out ChatGPT in its app, turning the popular chatbot into a virtual travel assistant. Users can now describe their ideal vacation in simple language and receive recommendations on places to visit.

"Any hotels or destinations discussed in the chat are automatically saved, so travelers can easily start planning from there," Murthy said.

Here's how Expedia is making travel smarter:

• Romie: Expedia's AI assistant, Romie, goes a step further. It helps with hotel finds during a flight delay and trip ideas in group chats. "We built Romie with hyper-personalization in mind," Murthy said. It's about giving travelers help on their terms when they need it.
• Simplifying reviews with gen AI: For most, sifting through endless reviews can be a pain. Expedia uses gen AI to summarize millions of customer comments into quick, digestible insights, helping travelers make informed decisions faster.
• Real-time destination guides: Dynamic travel guides use AI to deliver real-time updates on hotel prices, weather and crowd levels. It's like having a travel expert in your pocket.

These innovations go beyond mere convenience, addressing core traveler pain points related to time, confidence and value in a seamless journey from inspiration to return.

With unique use of technology, Expedia aims to not only make traveling more convenient but also to redefine it.